Military Star Card Collection

[JimBo99]

Good evening all.  Wanted to see if anyone out there could explain this before I call the collection agency up tomorrow. 

Long story short, ran into issues back in 2007, couldn't pay bills, blah blah blah...

TSI is assigned to collect on my Star Card account.  They were going to garnish my wages.  We worked out a deal.  I was paying $300 a month to pay off the account.   Well,  about a month ago, I got a cap one with 12 month 0% interest and 0 fee BT.   So, I trasfered $3000 to the card and paid the rest with my NFCU CLOC to pay it off,  just get the collection off the books.   I paid more than that balance to AAFES directly.  Now, I get a statement in the mail today and TSI has added $1150 in fees!!!

MY question, what are these fees and is this legal?  What are my rights?  I've paid off what I owe AAFES in full and then some.  

Thanks for your assistance.  I've attached pics below if they may help.

 

[JimBo99]

This was on the next page.  Doesn't explain what these fees are:

[RobertEG]

Under the FDCPA, which supercedes any state statute, it is a violation for a debt collector to charge additional amounts if not authorized in the original account agreement or otherwise authorized by law.  See FDCPA 808(1).

The first step is to carefully review your agreement with the orginal creditor and determine what was specifically provided in that agreement.

It is common for orginal creditors to include such authorization clauses in their agreements/contracts.

If provided, you agreed to those terms, and it is legal.

If you need an itemization of such amounts, contact the debt collector and make that request.

While not specifically required under the FDCPA, some states do include the right to an itemization of amounts asserted by a debt collector.

[Anonymous]

I will not try to pretend I know what the fees are BUT here is my guess:

Payment: $2,500.00   Fee: $525.00

Payment: $3,000.00   Fee: $630.00

Both of the fees listed are  21% of the payment. My guess is that they have some type of "Payment fee".

On your June 15th Payment, I also see a fee of  $63 with a corresponding payment of $237.00. I have a feeling that the payment you made was $300 and they charged a 21% payment fee of $63 yielding the payment of $237.

Maybe someone with expert knowledge of the FDCPA could chime in, but I think what they are doing may violate this part:

§ 808.  Unfair practices

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.

Is there anything that you signed where you agreed to the Payment fees? I see on the bottom of your first picture: "The balance reflected on the statement does on include their (TSI) collection fees."