I have a bill from a utility company that went into collections. The balance was about $700.00.
The collection agency sent me a letter stating the balance was $950.00 so I sent them a letter asking to validate.
The original balance ($700.00) is was verified plus an additional few dollars in interest however the additional 250.00 plus another 15.00 (265.00) was not.
My question is can the collection agency charge fees and interest in addition to the original balance?
I live in New York which probably allows consumers to charged to death but is this legal?
I am sending the collection agency another letter asking for additional accounting on this extra amount but I would also like to ask for as much information as possible such as contracts signed by me, state laws of NY allowing collection agencies to charge fees and interest, how much interest is allowable, etc.
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