I had a medical bill recently go into collections and they are trying to charge me almost $200 in a turnover fee. I heard this was illegal. Is it? If so what can I do?

Asked on March 16, 2012 under Bankruptcy Law, North Carolina

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

A transactional fee (turnover fee) such as the $200 amount that you have written about is not a per se illegal fee. Rather, it is a fee many entities use in the area of collection to pocket extra money from a consumer. Such a fee is not an allowable cost to be charged to a person unless the written agreement setting forth the terms of the underlying obligation states so.

If I were you, I would write the collection company a note agreeing to pay the amount you are obligated upon on a monthly basis where the agreement is to be signed in writing as to the total amount (assuming you owe the money). Specific reference should be made that the "turnover fee" is not part of the equation.


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