Wednesday, September 28, 2005

Collection agencies adding interest to debt

Some of my debts have now been turned over to a collection agency. Can the collection agency add interest to my debt?

Naveen J.
Round Rock, TX
Yes, the collection agency can add interest to your debt. The Federal Debt Collection Practices Act allows a collector to add interest if your original agreement calls for the addition of interest during collection proceedings or the addition of such interest is allowed under state law. Every state authorizes the collection of such interest.