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

Yes, a debt collector can charge a fee for collecting a debt in Washington. The maximum fee a debt collector can charge is limited by law and is based on the amount of the debt. The maximum fee is calculated by multiplying the unpaid balance of the debt by a rate of 15 percent or $25, whichever is lowest. The debt collector must also disclose the fee in writing before additional efforts are made to collect the debt. The fee must be included on the original invoice or statement sent to the debtor. This disclosure must include a clear and concise explanation of the fee and how it will be calculated. Debt collectors are also prohibited from charging a fee if the debtor disputes the debt within 30 days of the initial debt notification. Debt collectors are also prohibited from unreasonably withholding payments from debtors who are paying off their debt. The debt collector must apply any payments the debtor makes toward the debt within 10 days of receipt. If the debt collector applies any payments to its fee before applying payments to the debt itself, it is considered a violation of Washington debt collection law.

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

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