Can a debt collector add interest or additional charges to my debt?

In North Carolina, debt collectors are not allowed to charge additional interest or fees onto the debt that the consumer owes. Under the North Carolina Collection Agency Law, it is illegal for any debt collector to charge a debtor any fees beyond the amount of the debt that is owed. This includes any interest, late fees, or other charges. However, if the debt is secured by a collateral, such as a vehicle or home, and the promissory note authorizes fees or interest, then the debt collector can pursue the collection of those fees and interest in accordance with the promissory note. In this case, the consumer should be aware that the additional fees or interest would be in addition to the debt amount. Additionally, if a consumer has entered into an installment plan with the debt collector, the debt collector may charge additional fees for late payments. Any additional fees must be clearly disclosed to the consumer before the installment agreement is entered into. In conclusion, in North Carolina debt collectors are not allowed to charge additional interest or fees onto the debt that a consumer owes. However, if the debt is secured by collateral, or if the consumer agrees to an installment plan that includes additional fees, then the debt collector could pursue collection of those fees.

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