Can a debt collector charge more than the amount of the original debt?

Yes, a debt collector in California can charge more than the amount of the original debt. This is because of something called “interest”, which is extra money a lender will often add onto a debt. In California, lenders can legally add up to 10% interest onto a debt that has gone unpaid for over 30 days. Additionally, a debt collector may also add “collection costs” which can include attorney fees or legal costs. Collection costs can add up to 25% of the original debt, so if a debt is not paid off in full and on time, the total debt can end up being more than the original amount. It is important to remember that in California, debt collectors must follow certain rules and regulations. Debt collectors are not allowed to charge interest or collection costs that are not permitted by law. They also cannot threaten or harass individuals in order to collect the debt. If a debt collector is violating state or federal laws, they can be reported to the California Department of Business Oversight or the Federal Trade Commission.

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Can a debt collector charge more than the amount of the original debt?

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