Legal Question in Credit and Debt Law in Texas
fee for debt collection
Can a third party collection agency charge me a fee for collecting a debt that they say I owe another company? If so who sets the rates for the fee and can the rate be higher the the original debt that is owed?
Asked on 9/13/05, 6:02 pm
1 Answer from Attorneys
Peter Bradie
Bradie, Bradie & Bradie
Re: fee for debt collection
The collection agency can only collect what the original creditor is owed. That would be the principal plus accumulated interest and other fees. If suit is brought, you may be liable for court costs and attorney fees. But the collection agency can't charge a collection surcharge unless your credit contract obligates you to pay the costs of collection.
Answered on 9/13/05, 7:02 pm
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