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

In Tennessee, debt collectors are generally prohibited from adding interest or additional charges to the debt. This stems from the Tennessee Consumer Protection Act, which states that "no person engaged in the collection of a debt shall collect or attempt to collect, directly or indirectly, any fee, charge or expense incidental to or in any way connected with the principle or interest due on such debt." Furthermore, the Tennessee Code Annotated specifically prohibits the charging of any interest on a consumer debt, whether by a debt collector or the original creditor. In some cases, however, debt collectors can add certain charges that are legal under Tennessee law. For instance, where a debt is not paid within sixty days of its due date, debt collectors may assess a late fee of up to 5% of the past due amount; collection fees of up to 25%; reasonable attorney’s fees; and, a return check fee of up to $25. Ultimately, whether or not a debt collector can legally add interest or additional charges to a debt ultimately depends on the circumstances of each individual case. It is, therefore, important for individuals to familiarize themselves with Tennessee’s debt collection laws and carefully review any agreements that they sign with a debt collector. Individuals should also keep in mind that they can contest any additional charges that a debt collector attempts to add to their debt.

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

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