How much can a debt collector charge?

I was in a ski accident 3 years ago and transported to a hospital. The ambulance co.never charged my insurer and never sent me a bill. The account was given to a collection agency at that time. They attempted to contact me twice but never did reach me. Last week I was served. They are asking for $1759.45. Interest and fees totaling $404.45 more than the original bill amount. Is there anything I can do?

Asked on July 17, 2012 under Bankruptcy Law, Colorado


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Under the laws of all states in this country unless you signed a document stating you would be responsible for the fees of the bill collector, you are not responsible for such. As to accrued interest as opposed to a finance charge, interest cannot exceed that allowed by law under your state's laws on usury which probably is not more than 10% per annum at most.

I suggest that you consult with an attorney who practices consumer law to look into the matter you have written about and make sure that the debt collector is legitimate and not a scam artist.

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