Can a debt collector ever increase the amount of a debt?

Yes, a debt collector can increase the amount of a debt in the State of Washington. This is known as debt collection “mark-up.” Debt collection mark-up occurs when a debt collector adds additional fees such as late fees, collection costs, and interest charges to the original amount of the debt. These additional fees may not exceed the amount allowed by law and must be based on a written agreement between the creditor and the debtor. It is important to note that there are regulations in place in the State of Washington to protect consumers from excessive fees and charges. Under the Washington State Collection Agency Act, a creditor is not allowed to increase the amount of the debt beyond what was originally owing. In addition, any additional fees must be reasonable, and creditors must be able to demonstrate the reasonableness of the fees when requested. If you have been contacted by a debt collector regarding an amount greater than what you originally owed, you have the right to dispute the mark-up amount and ask the debt collector to provide proof that the additional fees are reasonable and allowed by law. If the debt collector cannot provide proof of the additional fees, then the debt should remain at the original amount. It is important to keep in mind that debt collectors are not allowed to harass or threaten you in order to get you to pay more than you originally owed.

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Can a debt collector ever increase the amount of a debt?

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