I was told by Creditor that collection Agency can get 50% of what they can collect. So... If I own creditor $1000, Collection Agency will bill me $2000. After full payments is made, CA can keep $1000 and send $1000 to creditor? or If I own creditor $1000, Collection Agency can bill me $1000. After full payment is made, CA keep $500 and send back to Creditor $500?
This can be very tricky depending upon whether or not the collection agency has purchased the debt or if they are just collecting for the creditor. If they purchased the debt then they should not be able to add any fees at all because they have no contract with you. Enforcing that may not be easy unless they take you to court then the objection of their having no contract with you could be a good one Until they take you to court, it could be a tough argument to make stand. Either way, it would not be easy, but I think your getting charged way to much no matter what else. Doubling the debt just isn't reasonable
But, don't you usually sign an agreement when you make the loan (or get the credit card) that you will pay reasonable collection fees if you default? I know that last year I paid 40% to a collection agency on top of what was owed. I think that I got screwed but it happened.
Quote: I paid 40% to a collection agency on top of what was owed. I guess your 40% paid was included interest + collection fee? my $1000 is only for one time collection fee + interest + principle. I'll accept the penalties, but I just wanna make sure this is not part of their Abusive Collection Tactics.
I think it's very abusive. You agreed to pay reasonable collection charges in all probability, but if there was no definition of what was "reasonable" then they can't make that stick. If it goes to court they can't hang attorney fees on you either since the attorney has no contract with you. Yes, it's very abusive
