Can debt collectors add more fees after buying your debt?
Summary
When debt collectors buy your unpaid debt, they cannot add new fees that were not in your original loan or credit agreement. They can only collect what the original contract and state laws allow, such as existing interest or certain legal charges. If your debt balance grows after being sold, you have the right to ask for a detailed breakdown to check if the added amounts are correct.Key Facts
- Debt collectors often buy unpaid debts from the original lenders for less than the full amount owed.
- When debt is sold, the new owner can collect under the original terms but cannot create new fees.
- Federal law stops collectors from charging extra fees unless your original contract or state law allows them.
- Some contracts let interest or collection costs keep growing even after you stop paying.
- State laws vary on what extra costs can be added after a debt is sold.
- Debt collectors may not charge fees just because you pay online or by phone unless allowed by the contract or law.
- You can request a detailed statement showing the original debt, interest, fees, and legal reasons for changes.
- Even if your debt has increased, it might be possible to settle for less than the full amount owed.
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