Collection Fees tact on to original amounts.

Is there a limit on how much a collection agency can add on to your total original bill. I had one account with a PDL and it was for 260 including the fee and I'm not sure how much they tact on for it getting rejected from my bank account, but when the collection agecny called me they said my new total was 699.00. Also I had a PDL out with instantpayday.com and and my total including the fee was 290.00. When it got to the collection agency it went up to 375. Another question= When accounts get moved around to different collection agenies does the prior collection agency fee stay added to the bill on top of getting a new one from the new collection agency. I hope I'm making sense here.

collection agencies can add fees in the total debt if it has been stated in the contract signed with the lending company. Besides, they can also add charges once the debt is sold off by the original creditor. These points should be clearly explained in the terms and conditions signed with the original company and the fees must be within the permissible state laws. The CA cannot charge more than the fixed amount. You can verify the charges with the attorney general of your state.

When the account passes from one CA to another, the fee calculation will be done based on the time period taken to recover the debt. The companies cannot add their own individual charges and make the total debt invalid.