Can a collection agency charge collection fees to the debtor if the collector does not own the debt?
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Can a collection agency charge collection fees to the debtor if the collector does not own the debt?
Can a collection agency charge collection fees to the debtor in the state of washington if the collector does not own the debt? It is for a state federal college grant the O/C still owns the debt it is $425 but the collection agency is trying to chage $640. When I contacted the O/C they said they can not afford the collection cost so they told the C/A to put it on the debtor. Is this legal?
Asked on June 21, 2012 under Bankruptcy Law, Washington
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
IF the debt collection agency does not own the debt that you are writing about and has not been retained by the creditor to collect on such debt that you are writing about then the charges for the colleciton fees on the debt contract are not allowable unless the underlying debt and the judgment allows for such fees.
As such, I suggest that you read the agreement that you signed with respect to the underlying debt as well as the judgment against you carefully.
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