Debt Collection Process

Can a collection agency charge more for a debt than what you owe?

I am in the process of settling my debt. A collection agency which bought my account is charging more than double what I owed. Is this legal? How much can a collection agency legally charge? Please if you dont really know the answer to my question do not respond. I need to know the answer. Thanks

Public Comments

1. How many times are u going to ask this question?
2. The law on this varies considerably from state to state, so depending on getting your answer here is not a good idea. You'll need to consult your banker or an attourney to get the right answer. That said, I know of no state that permits a collection agency to double the amount you owe. They are permitted to tack on a percentage - a surcharge - to cover their expenses in tracking you down and persuading you to pay up. But double the amount? That's not legal here in New York state - but I can't answer for any other state. See the second sentence above...
3. Call your original creditor and see what they say about just paying them?? Never know might get a human ont he other end. :)
4. as far as i know- no, they get paid a percentage of what you own, but your original bill my accumulate some late fees
5. They can charge late fees and other fees but most of the time if you talk to them they will be willing to settle the debt for half....I know because i've had some settlement offers from collection agencies where they wanted me to pay half and the debt was paid.
6. They can charge late fees and an interest rate decided by your state. Check out the statue of limitations for you state and it should also say the interest that can be charged.