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

In North Carolina, debt collectors are allowed to charge a fee for the collection of debt. The exact amount of the fee is set by state law and is based on the amount of debt being collected. Debt collectors are limited in the amount they can charge. The fee must not exceed 18% of the principal amount of the debt. In addition to the set fee, North Carolina also permits debt collectors to obtain a “reasonable attorney’s fee” if a court action is taken against the debtor. This means that the debt collector can include the cost of any attorneys’ fees they incurred in their collection efforts in the total amount due. In order for debt collectors to charge a fee, they must provide the consumer with a written statement of the fee. This statement must clearly explain the amount of the fee, when it is due, and any other relevant information. For certain types of debt, North Carolina also requires debt collectors to obtain a court order before charging any fees for collection. This applies to debts owed to state or local governments, including debts for unpaid taxes or traffic violations. In short, debt collectors in North Carolina may charge a fee for the collection of debt, but it must be in accordance with state law. In addition, the debt collector must provide the consumer with a written statement of the fee and obtain a court order if necessary.

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

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