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In the state of California, are debt collection companies allowed to charge interest and, if so, what would be the allowable interest rate. I cannot get the hospital to tell me if or what rate of interest they have in the contract with the debt collection agency. The collection company is charging 77% on a medical bill, which seems very high.


Under Section 808, 5 USC 1692f of the FDCPA, collection agencies are only allowed to charge interest on a debt if a) they have a judgment against you or b) if the original contract/agreement allows for the accrual of interest. Ask these people to validate the debt, eplicitly asking for a copy of the original contract. Once you receive that, you can review it and figure out the interest rate.

Sub: #1 posted on Wed, 01/23/2013 - 19:36

Steve Barris Steve Barris

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