You are here:
- Home
- Business
- Corporate Law
- Collections Law
- Late Payment Fee
Collections Law/Late Payment Fee
Advertisement
Question
I just received notification from a collection agency for a medical bill that I had not previously received. The original bill was for $313 and I wouldn't have any problem paying it as I did receive the services, but the collection agency is saying total the amount now due is $455. I cannot believe that I am being assessed 50% of the entire bill in interest and penalties. Isn't this tantamount to usury?
Hi Tamra:
Probably not, because it is probably not all being assigned to interest. It also depends on how old the debt is. However, some states do have minor restrictions in cases like this. You may want to complete a basic internet search for usury laws in your state.
On the positive side, it probably gives more space to negotiate, especially for a deletion from your credit reports. If you pay a higher amount, they may be willing to delete it from your credit reports. Certainly, they should be willing to negotiate the amount down. Just be sure to get any settlement in writing BEFORE sending payment and make sure they actually have a right to collect the debt. Make sure the debt is also valid. I would concerned since you say you never originally received a bill.
Good luck, I hope this helps.
Regan
REMOVE COLLECTIONS FROM CREDIT REPORTS - www.ficofighter.com
Related Articles
Answers by Expert:
Regan Shinski
Expertise
I can answer questions on collections, repossessions, bankruptcy, credit repair, credit counseling, FICO scores, credit planning, and the cause and effect of credit related decisions. I can also answer questions on collection settlements and preparing to sue your creditors for false debts and credit credit reporting.
Experience
Fifteen years ago I was financially devasted due to severe health issues. I filed bankruptcy, had a foreclosure, car repossession, tax lien, and ruined credit. I immersed myself in credit law. I settled dozens of accounts and had them removed to improve my credit. I personally sued four creditors and collection agencies and won cash settlements for their false reporting on my credit reports.
Since then, I have completely recovered and have nearly $100,000 in revolving credit lines and perfect credit. I have owned a credit repair company for the past five years and have an additional three years of specific work in the collections and debt management industry.
I am fully versed in the Fair Debt Collection Practices Acts (FDCPA), Fair Credit Reporting Act (FCRA), and have used them successfully in collection settlements and lawsuits for myself and others. I am also familiar with and abide by the Credit Repair Organizations Act (CROA).
I have deleted or helped delete literally hundreds and hundreds of derogatory items from consumers' credit reports and helped negotiate many settlements with collection agencies and creditors. I have also advised people on bankruptcy at any stage.
In the current credit market, I have successfully advised numerous people on how to obtain credit and how to negotiate for better terms.
Education/Credentials
BA University of Minnesota
©2012 About.com, a part of The New York Times Company. All rights reserved.