Is it against the law for a Collection Agency or allowable for them to add a fee for the collection of a debt?? A CA is contacting me about a dentist bill they are trying to collect on and they say I owe. I am not in agreement over their amout they are claiming or for that matter haven't even been given validation of the debt although they state they sent me a copy of the validation several times. When I spoke with them they stated they added a $20.00 collection fee to the debt??? I though a CA couldn't profit from collecting a debt by adding fees and the only way they could was if they won a legal action against me. I had no contract with the dentist saying they could charge me fees??? Could someone please help me on this and list an actual law I could use in court. I am suing them right now for various laws they've broken. I have a court date for July 18th, 2002. I want to add this as proof when they go to court if this fee is illegal. Thanks for the help! Tac
Hi! I think (!) it depends on the state..in CO, the statute says reasonable fees. You might check state laws. Hope others can give more info.
First and foremost, they need to validate this debt. They can cry all day about how they allegedly sent your "several" proofs of validation, but we both know they're lieing. Secondly, from the FDCPA: § 808. Unfair practices [15 USC 1692f] A debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section: (1) The collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law. Now since there is no written agreement (between you and dentist), there can be no "authorizing" of any such fee, charge, expense, etc. The "permitted by law" part is most likely referring to any state laws, which you would have to check out yourself. They may also be of some help: § 807. False or misleading representations [15 USC 1962e] A debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section: (1) The false representation or implication that the debt collector is vouched for, bonded by, or affiliated with the United States or any State, including the use of any badge, uniform, or facsimile thereof. (2) The false representation of -- (A) the character, amount, or legal status of any debt; or
The answer I got fron the AG's office in FL was that there wasn't a law prohibiting a CA from charging interest, so they are allowed to. Now, they claimed to have sent validation several times. Do they have their green cards to back this up? Tell them to PROVE it. Gib
I contacted the PA Attorney Generals office and the lady steadfastly admitted they could charge fees, but what she read to me in state law referred to creditor and not a collection agency. She said if I had a contract with the dentist stating fees and intrest could be added then they could charge me this. I argued that the CA is NOT the CREDITOR but I soon found I was dealing with an idiot on this subject. Rather then debate all day long with her I just asked that she send me my state's laws on this which she said she would. She is lucky she was half way polite because this office is only 4 miles from my home I could have easily went directly to her for this information on a more personal level. In any regards I don't remember signing any contract stating the dentist could do this so I believe what they are doing is illegal anyway. When I asked the CA for the dates they sent this numerous correspondence they couldn't say but only state that they would have to research that. I said you better have your research complete because I definetly have mine. They said they would. I don't know if the claim they didn't send it certified will hold up in court because I'm sure the judge will state that that isn't always necessary. All I know is that in the past four months they haven't sent me a damn thing despite several letters and faxes to them asking for validation and noting their violations, I contacted them today to see if they've received my recent fax. Although the lady was polite she just couldn't understand that her company was in violation of any laws over this debt, no surprise. As usual all they wanted to talk about was me paying this debt and that they had proof right in front of them. I told her good bring it all to court, I also told her to bring to court their proof that they had communicated to the CRA's that this account was in full dispute. I have both current copies of my credit reports not listing this and the date reported as being well after my inital dispute letter to them. She said that was in another department. I said make sure that department show's up for court you will need it! In either case nothing was ever sent but the initial letter by them. I asked if they had a signed contract and she stated they had all my records pertaining to these transactions. Another question.....Is my dentist in violation of any laws for furnishing the CA my confidential medial information??? If so does anyone have a federal statute I could apply to this?? Thanks so far for the help! As always I will let everyone know of my outcome in this matter! Tac
