What is considered a reasonable collection fee?

In California, it is important to understand what is considered a reasonable collection fee when dealing with Collection Defense Law. Collection fees are typically based on the total amount of money collected. Generally, it is reasonable for a collection agency to charge a fee of up to 15% of the total amount of money collected. In some cases, state law may allow for collection fees up to 20%, but this is usually an exception. It is also important to note that some collection fees may include additional charges. For example, a collection agency may charge an additional fee for court filing, attorney’s fees, and other associated costs. In some cases, the total collection fee may be higher than the legal limit of 15%, but this is only allowed if the additional fees are authorized by the court. When a collection fee is being charged, it is important to make sure that the agency is charging a reasonable fee that is in accordance with Collection Defense Law. A consumer should request a statement from the collection agency that outlines the total fees being charged, as well as a copy of the contract that was signed. This will allow the consumer to make sure that the fee being charged is fair and reasonable.

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What is considered a reasonable collection fee?

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