05-12-2011 12:17 PM
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?
05-12-2011 02:18 PM
05-12-2011 05:05 PM
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.
05-12-2011 07:06 PM
05-12-2011 07:14 PM
05-13-2011 09:46 AM
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.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.