QUESTION

Does a collection agencies or law firm have the right to add interest to debt that''s in default status?

Asked on Nov 28th, 2011 on Collections - Indiana
More details to this question:
N/A
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1 ANSWER

Personal Injury Attorney serving Chicago, IL at Meier LLC
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Under the Fair Debt Collection Practices Act (FDCPA), a collection agency or law firm is prohibited from collecting any amount not authorized by the debt instrument (i.e. loan document).  Therefore, whether they can add interest and penalties depends on the terms of the loan.
Answered on Nov 29th, 2011 at 12:47 PM

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