How much do I actually owe on this collection? DCU and Sunrise Credit Services

[40thieves]

In 2019, I defaulted on a personal loan with Digital Credit Union...the unpaid balance was $684.  That is what shows as the charged-off amount on all three credit reports as well.

I've been paying down my chargeoffs, but before I could get to this one, I got a dunning letter from Sunrise Credit Services, collecting for DCU...but the sum owed is $855.29.

There is no breakdown of new interest, fees, etc, it just says "account balance $855.29/balance due $855.29".

Do collection agencies have to specify what any "extra" charges above and beyond the original charge off are? This is the only collection I have dealt with that is larger than the charge-off itself.

Thanks for your time!

[thornback]

Per FDCPA (§ 808. Unfair practices), Collection agencies can only charge interest and fees if the original contract or your state law allows it. 

The general DCU consumer account agreement states the following: 

"To the extent permitted by law, you will be required to pay the fees of any collection agency, which may be based
on a percentage at a maximum of 50% of the amount owed, as well as any other collection fees and expenses incurred by DCU (including, without limitation, court costs and reasonable attorneys’ fees) in attempting to collect any amount owed by you with respect to any Account or service." 

So it seems likely you owe the amount stated by Sunrise.  If you still have the agreement you signed for your loan, it may be more specific as to collection costs. 

While I don't believe collection agencies are required to provide a breakdown, you could request one. 

[RobertEG]

The federal FDCPA does not require debt collectors to provide a detailed breakdown of the elements of a debt under their collection.

The dunning notice requirement of FDCPA 809(a), for example, only mandates that they state the amount of the asserted debt.

However, a few states have enacted enhanced debt collection practices statutes or regulations that mandate differing degrees of documentation of an asserted debt.  That requires  a review of your state debt collection practices statutes and regs to determine whether your state mandates any such provisions.

REgrdless of whether your state might mandate such dislclosure, nothing prevents you from sending them an informal request and see if they will willingly comply.

Of course, should you become iinvolved in any civil actions, the rules of evidence and the discovey process associated with such litigation would provide such right that might not exist outside of legal action.