Legal Question in Credit and Debt Law in California

Collection charges

I recently received letter from collection agency requestiong payment of a delinquent student loan. This collection agency is charging me $1100 collection fee. Is this legal in the state of California to charge such astronomical fees?


Asked on 3/13/02, 12:54 pm

4 Answers from Attorneys
Larry Rothman Larry Rothman & Associates

Re: Collection charges

I cannot understand from your e-mail how you can be charged such a fee. If you fax me to 714 363 0229 all of the documentation and letters that you have, I will call you as soon as I received these items and provide you with free consultation.

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Answered on 3/14/02, 1:28 pm
Alexander Trueblood Trueblood Law Firm

Re: Collection charges

That does not sound legal, but we need to know more. Who is the collection agency and how are they denominating the charges?

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Answered on 3/13/02, 2:08 pm
Ken Koury Kenneth P. Koury, Esq.

Re: Collection charges

No it is not

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Answered on 3/13/02, 2:16 pm
Sheldon G. Bardach Law Offices of Sheldon G. Bardach

Re: Collection charges

Under virtually no circumstance is that high a charge enforceable. Only a reasonable fee can be charged, if they are incurred by your lender. Whether or not you are obilgated to pay any collection fees depends on what the terms of your agreement with the lender are. You'd better read what you signed to get the loan.

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Answered on 3/13/02, 3:00 pm


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