What penalties or interest can creditors charge when settling debt?

When a creditor settles a debt in California, they are typically able to charge various fees, penalties, and interest. These fees usually depend on the type of debt and the amount owed. For instance, creditors can charge interest and fees for late payments on credit or loan accounts. This may include additional interest on the total amount owed, plus a late fee. There is not a set rate for these fees or interest as it can vary from creditor to creditor. When it comes to credit card debt, creditors can charge additional fees on top of the amount owed. This can include fees for credit card services, collection fees, and overdraft fees. There is also not a set rate for these fees, but they are often higher than the fees that are applied to loan accounts. Creditors can also charge fees for debt settlement services. These fees can cover everything from account set-up to the actual process of negotiating the debt. They can also include extra fees if the creditor has to hire a debt settlement company or attorney to help with the process. On top of these fees and interest, creditors are also allowed to charge court costs if they take the debtor to court over the debt. In California, these costs can include filing fees, attorney fees, and other costs associated with litigation. In most cases, creditors are only allowed to charge the fees, penalties, and interest that are allowed by law. It is important for debtors to understand what fees are being charged in order to ensure that they are not being taken advantage of.

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What penalties or interest can creditors charge when settling debt?

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