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

In Mississippi, debt collectors are not allowed to charge more than the original amount of the debt. This is known as the “usury” or “excessive charges” law. This law prohibits a debt collector from charging an amount that exceeds the amount of the debt originally owed by the debtor. However, there are certain exceptions. For example, a debt collector may charge interest on the unpaid portions of the original debt, as long as this interest is agreed upon in the original loan agreement. Additionally, if a debtor feels that a debt collector has attempted to collect more than the original debt amount, they can file a complaint with the Mississippi Department of Banking and Consumer Finance to seek redress. Debt collectors are also not allowed to charge late fees, which are fees for late payments. Debt collectors are also prohibited from threatening the debtor with legal action in order to collect the original debt. They are also prohibited from making false statements about the debt, such as claiming that the debtor owes more money than they actually do. In Mississippi, debt collectors must abide by state and federal laws and regulations concerning debt collection. If a debt collector is found to have violated these laws, the debtor may be able to seek compensation. It is important to research the rights of debtors in Mississippi before engaging with a debt collector to ensure that the debt collector is in compliance with the law.

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

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