interest on account

Every state has a collection fee on the account received from the original company. Go through the contract copy signed with the original creditor and verify the charges when the file is sent to collections.

We know that debts can be sold, that's a given. If someone buys your account, in order for them to continue charging interest, they may need to have a license to charge interest.

For example, in Illinois any company can charge 9% without a license. To charge more than 9%, a company needs to have a loan license. Suppose I have a credit card at 18% and it gets sold to ABC Acceptance ... if ABC is not licensed to charge more than 9% then they cannot continue to charge interest at the rate the credit card company could.

In your case, it all depends on who owns the debt. If the attorney is working on behalf of the original creditor, then they can charge interest. If the attorney is working for a junk debt buyer, then you should check your state laws to see if they need to be licensed. If they simply are licensed as a collection agency and not a finance company, chances are that they can collect the principle balance, but they are not allowed to charge interest.

Also, Steg is correct in that collectors can usually charge a *reasonable* collection fee. However, that is usually only a one-time fee and should not be recurring.