Expert: Kathleen Eads - 5/4/2006

Question
THERE IS AN AGENCY IN GEORGIA THAT IS ADDING 50% ON TOP OF MEDICAL AND OTHER DEBT.  IS THIS LEGAL.  

Answer
Michael,

While your question is short and concise, there are so many factors that can contribute to what the agency is doing:

1)  How old is the debt, and are they charging interest?
2)  Did your original contract with the creditor state, in default, that you would be held liable for principal, court costs, attorney & collection fees?  
3)  Is this the result of any returned checks & where were they written?  Some states allow for treble damages with returned checks, and some states even consider it a felony.  

I don't have enough information to tell you WHY they are charging more.  If they are a reputable agency at all, I can pretty much tell you that whatever they are doing, it's probably legal.  Consumer agencies are goverened by the FDCPA (Fair Debt Collection Practices Act) and most are well aware of what they can or cannot do.  Not adhering to these mandates is a violation of federal law.

Hope this helps!
Kathleen Crabtree