Can a collection agency add interest to my debt?
Not unless it was called for in your original agreement or allowed under your state’s law. Many states do authorize the collection of such interest. In California, for example, collection agencies can add interest because the Civil Code (ยง3289(b)) permits a creditor to charge interest after default, even if the contract is silent.
1. Collection agencies have been calling me all hours of the day and night. How can I get them to stop contacting me? It’s against the law for a bill collector who works for a collection agency (as opposed to working in the collections department of the creditor itself) to call you before 8 am or after 9 pm. The law, the Fair Debt Collection Practices Act (FDCPA), also bars collectors from calling you at work, harassing you, using abusive language, making false or misleading statements, adding unauthorized charges and many other practices. Under the FDCPA, you have the right to demand that the collection agency stop contacting you, except to tell you that collection efforts have ended or that the creditor or collection agency will sue you. You must put your request in writing. 2. I’m also getting calls and letters from the collections department of a local merchant I did business with. Can I tell that collector to stop contacting me? No, the FDCPA (Fair Debt Collection Practices Act) a
