Legality of interest rate on debt collection
Date: Wed, 01/23/2013 - 12:18
Legality of interest rate on debt collection
In the state of California, are debt collection companies allowed to charge interest and, if so, what would be the allowable interest rate. I cannot get the hospital to tell me if or what rate of interest they have in the contract with the debt collection agency. The collection company is charging 77% on a medical bill, which seems very high.
Thanks
Thanks
Under Section 808, 5 USC
Under Section 808, 5 USC 1692f of the FDCPA, collection agencies are only allowed to charge interest on a debt if a) they have a judgment against you or b) if the original contract/agreement allows for the accrual of interest. Ask these people to validate the debt, eplicitly asking for a copy of the original contract. Once you receive that, you can review it and figure out the interest rate.
