About Frank Brewster Expertise I can answer questions regarding FDCPA issues. State collection agency laws and rules. Legal process in collection issues.
Experience Started in the collection industry in 1986 as a collector of consumer debt. Became a manager, recruiter & trainer of one of the largest Commercial Collection Agencies in the world. Tested and received branch manager licenses for states that require this. As owner of a collection agency had a network of creditor’s right attorneys across the United States. Assist in the civil process of collection for creditor’s right attorneys by helping prepare cases
Question Can a collection agency add a processing fee to the balance due on a medical bill if the debt was purchased from the original creditor?
Answer Elizabeth,
Thanks for the chance to help you.
I have attached a section of the Fair Debt Collection Practices Act for you:
§ 808. Unfair practices [15 USC 1692f]
A debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:
(1) The collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law.
What this says is that no other charges may be applied unless a contract says it may and I an assure you that is not the case with a processing fee. In my opinion the agency is padding the charges.
There could be other issues too and I would be interested in knowing how old the debt is and what state you are in. If you would like for me to look into this further you may email me at frankbrewster@cox.net.
