Can a debt collector charge a fee for collection of a debt?

In California, a debt collector is allowed to charge a fee for collecting a debt. These fees are limited, however, and depend on the debt being collected. The California Debt Collection Practices Act states that a debt collector may charge a “reasonable fee” for collecting a debt. This fee can only be charged when it is either explicitly stated in the original loan agreement or if it is allowed by law. The exact amount of the fee can vary based on the type of debt being collected. For example, a debt collector in California may charge a fee of up to 10% of the debt owed if the debt is a consumer loan or is a consumer loan with an open-ended agreement. The amount of the fee may be higher for more complex debt collection, such as a business loan or mortgage. In addition, a debt collector must also comply with other regulations when charging a fee for debt collection. They can only charge the fee once the debt is actually collected, not before. Furthermore, the fee must be reasonable and not exceed the costs incurred by the debt collector while collecting the debt. Overall, debt collectors in California are allowed to charge a fee for collecting a debt. The exact amount of the fee can vary and depends on the type of debt being collected. However, all debt collectors must adhere to the regulations set forth by the California Debt Collection Practices Act when charging a fee for debt collection.

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Can a debt collector charge a fee for collection of a debt?

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