Can a collection agency charge collection fees to the debtor if the collector does not own the debt?

Get Legal Help Today

secured lock Secured with SHA-256 Encryption

Can a collection agency charge collection fees to the debtor if the collector does not own the debt?

Can a collection agency charge collection fees to the debtor in the state of washington if the collector does not own the debt? It is for a state federal college grant the O/C still owns the debt it is $425 but the collection agency is trying to chage $640. When I contacted the O/C they said they can not afford the collection cost so they told the C/A to put it on the debtor. Is this legal?

Asked on June 21, 2012 under Bankruptcy Law, Washington

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

IF the debt collection agency does not own the debt that you are writing about and has not been retained by the creditor to collect on such debt that you are writing about then the charges for the colleciton fees on the debt contract are not allowable unless the underlying debt and the judgment allows for such fees.

As such, I suggest that you read the agreement that you signed with respect to the underlying debt as well as the judgment against you carefully.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption