California | Criminal Law
Legal Question
A collector has added on a 41% collection fee---is this legal?
I have recently been sent to collection for past due university tuition. The principle balance is $7,827.34 and the creditor is charging a contingency fee of $3,354.57. This fee was not agreed upon in the contract I signed with the university if the tuition and fees were not paid. My question is, what governs these collection fees? How much is too much? Does the percentage vary from state to state?The collector will not tell me where these fees have come from and how the agency came up with the 41% and I have battled with him about this on various occassions. It just seems excessive to me. In the mean time, I have sent the collector a payment of $1200 along with a cerified letter stating that payment is to be applied toward the principle balance only. This was to help protect me from paying these fees until I know if they are legal or not.
Thank you in advance for any help you may be able to give.
AS
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