Legal Question in Credit and Debt Law in Virginia
Attorney Fees for Collection of Debt
I have a contract with a company, signed 07/15/08, for facilitation services. The total owed was over $2,000 and I have been making payments on that amount. The last payment (of $1,000) brought the total due to $675. With the payment I thanked the company for it's patience (I was out of work for over a month 01/09-03/09) and asked for a statement showing my balance owed. Instead, I received a letter from an attorney demanding the $675 + $300 in fees. The orig contract mention NO agreed fees or collection actions. If I continue to make payments (which the company cashes), can they still take court action or collect fees? With the last payment and explanation, I stated that I would continue to make regular payments until paid in full. I assumed this was satisfactory since I did not receive a response (until the Attorney's letter)
1 Answer from Attorneys
Re: Attorney Fees for Collection of Debt
Yes, the company through the lawyer could sue you for whatever balance is still outstanding on the loan and obtain a judgment against you for that amount plus costs, but it could not likely be awarded attorney fees unless these fees were included as part of the original agreement.