QUESTION
How can a collection agency add as collection cost and interest adjustement in the state of California?
Asked on Aug 18th, 2011 on Debtor and Creditor - California
More details to this question:
I am embarrassed but I failed to pay the monthly homeowner association fees for 3 months because I had to help my sister out. I have done this before without any problems. However, when I called the homeowner association yesterday to ask for my balance, they said it had been sent to collections.
Today I received mail from the collections agency. I have to pay $1600, but of that amount, $300 goes to collection cost and interest adjustment. I can pay the full homeowners association fees today, but the interest amount seems unfair.
Any advice? I''m rather bummed. Will this affect my credit score? Three months ago, it was 800.
Kind regards,
1 ANSWER
Bankruptcy Attorney serving Sacramento, CA
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Thomas Hogan Law Office
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Short answer: Get out your contract and read it. If you agreed to it, then it is a valid debt as long as it is legal. In California, agreed to collection costs are probably legal.
Long answer (for the curious at heart): Go read this statute ConsumerAffairs under Article 2.6 paragraph 2 will be your answer. Also read one of my posts regarding how California collection companies operate, california-collection-company
Thomas Hogan Law Office331 J St #200Sacramento, CA95814(916) 756-0243www.tomhoganlaw.com
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Answered on Aug 19th, 2011 at 2:08 PM