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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.

Thanks in advance for any help.

-- Roy

Is this a third party CA or a JDB? My understanding is with 3rd party collections a public utility can pass the costs on to is not the CA charging you the interest and fees but the utiility company.

Sub: #1 posted on Mon, 09/08/2008 - 09:57

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The account was just recently was sent from the original creditor (utility company) to a collection agency so yes, this appears to be a 3rd party CA and not a JDB.

Sub: #2 posted on Mon, 09/08/2008 - 12:21


This is not a public utility company such as gas or electric. it is oil company.

I'm interested in knowing if they can charge a fee plus accrue interest while trying to collect this debt.

Sub: #3 posted on Wed, 09/10/2008 - 08:36


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