Law Offices of Todd M. Friedman, P.C.

With offices in California, Ohio, Pennsylvania and Illinois, we serve clients throughout the country.

Toll Free 877-619-8966

California 424-235-1148

Pennsylvania 424-235-1148

Illinois 312-292-9296

Over $500 million in verdicts and settlements.

Law Offices of Todd M. Friedman is open and operating. Out of concern for our clients’ health, we are offering phone and virtual meetings for both current clients and those seeking information. To contact us, please call the number appropriate to your location, listed at the top of every page.

Is It Legal For Debt Collectors To Add Interest, Fees Or Penalties To My Original Debt Amount?

| Nov 3, 2012 | Firm News |

The Fair Debt Collection Practices Act, (FDCPA) prohibits collectors from collecting any amount unless the agreement you signed when you took out the loan states that they can add fees, penalties, etc. for such amounts to be legal.

If the contract doesn’t specifically say that fees, penalties or other “extras” are allowed, they can be added if such a charge is specifically permitted under state law. If the contract doesn’t allow collection of additional amounts, or if state law prohibits it, debt collectors cannot collect additional sums.

In California, collection agencies can add interest to your balance under state law, as long as the agreement authorizes it. You are entitled to receive an explanation from the collection agency about how much they are charging you and why.  If you believe they are violating the terms of your agreement, contact The Law Offices of Todd M. Friedman for a free consultation at (877) 449-8898.   We will tell you whether the collector is violating the Fair Debt Collection Practices Act and advise you on your legal rights. Consumers who have been mistreated by debt collectors can be entitled to attorneys’ fees, court costs and compensation.


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