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Established Member
C-Chedda
Posts: 19
Registered: ‎05-23-2010
0

Collection fees

I had a debt I owed my old school. it was 5022.85. I recieved a letter from the collection agency that stated I now owed them 7,930.33 (5022.85 debt 444.21 interest, and 2456.22 for collections cost 7.05 penalty) is the legal for them to charge so much in fees?

Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008
0

Re: Collection fees

Read the contract you signed with your school and look up your state laws on collections.

Established Member
C-Chedda
Posts: 19
Registered: ‎05-23-2010
0

Re: Collection fees

I did not sign a contract. This was NOT a student loan. I registered for classes and did not pay.
Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008
0

Re: Collection fees

Established Member
C-Chedda
Posts: 19
Registered: ‎05-23-2010
0

Re: Collection fees

I tried, but I could not find any info... That's why I'm asking on THIS WEBSITE! if you don't know the answer just say "I don't know the answer"
Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008
0

Re: Collection fees

How would I know what your state says is legal for a CA to charge?

 

If you can't find the information, ask, give the state you are in, and it can be answered.

 

A CA can charge fees, how much depends on your state laws.

Established Member
C-Chedda
Posts: 19
Registered: ‎05-23-2010
0

Re: Collection fees

The state is Ohio
Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008
0

Re: Collection fees

They can only charge you fees if the creditor allows it.  In this case it would be the school and what they allow.

 

 

Established Member
C-Chedda
Posts: 19
Registered: ‎05-23-2010
0

Re: Collection fees

So per the law, someone can charge you 2x the value of a loan? If I gave someone 5000 and I said they had to pay back 8000 I would be in jail. How do I dispute this? Do I have to sue the school or collection agency. I dont want them to garnish my wages
Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008
0

Re: Collection fees

I would start with the school.  Find out when it was turned over to collections and what they allow to be charged for fees.  Find out if the school still owns the debt or if they sold it to the CA.

 

$2000 + for $5000 is over half of the original amount and is excessive.  I wouldn't think that would be legal.

 

You can also get a free consult with a consumer attorney in your area and ask.

 

They can't garnish your wages without a court order, which if they decide to go that route, you would need to be served first.

 

You would sue who is trying to collect the debt.

 

 


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