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Can a Collection Agency charge fees or costs to the original amount turned over for collection?

Bankruptcy 3 views 1 answers
I have a debt to a dentist that was in the amount of $1478. It was turned over to an Illinois collection agency with offices in Indiana they state was December 31st. They sent me a letter that stated I owed $1478 plus $501 in costs. I was under the impression that collection agencies cannot charge any fees or costs to the person who owes the debt. Is this not correct? Is this a part of the FDCPA? I explained to the Agency that they were not allowed and I got 2 different stories that it was interest from the dentist which the dentist says it isn't and then they say it is allowable for them to charge me up to 35% of total due in fees which my paper does not state. My paper only states $1478 due the Dr. and the interest spot has a 0. Then the costs spot has the $501.I also saw where an agency in Florida was looking for clients to get debt to collect and stated no fees to the client because they added their fees on top of what is owed by the person they are to collect the $$ from. Which is correct? Please help me. I am refusing to send any money to them and have continually told them whatever I can pay will be sent directly to the Dentist. (the Dentist already accepted a $480 check in November) I want the Dentist to get the $$ and not the collection agency because they will deduct what I send off the $501 costs first. What is the correct thing to do?

Attorney Answer

1
Guy Piers CoburnDebt Collection AttorneySaint Petersburg, FL ·
The amount you owe is determined by (a) the agreement you have with the creditor, and (b) state law. If your agreement with the dentist has language about what happens in the event that the account is in default or goes to collections, you need to closely examine that section. Does it have language such as "Patient will be responsible for all costs of collection"? If not, the collection agency may have no valid basis to collect the "costs." Go ahead and pay the Dentist, and let the collection agency know that is what you are doing. Advise the collection agency IN WRITING that you dispute the cost amount, and demand verification of the cost amount. If the collection agency has no legal basis to demand payment of the costs, then you may have a valid claim under the FDCPA against the collection agency. There are probably attorneys in your area who handle FDCPA claims, and you should consult with one of them.
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