How can I dispute collection fees that were addedafter I paid and agreed upon amount to settle a debt?
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How can I dispute collection fees that were addedafter I paid and agreed upon amount to settle a debt?
I am dealing with an attorneys office that settles disputes and collects for a homeowners association. I had missed a yearly payment, and the attorneys office said that I owed $665 after all the fees/interest etc. They offered me a payment plan to put 30% down and make 6 monthly payments to settle this dept. I made all the payments on time and when I sent in the final payment they mailed it back to me stating that I owed $400 more now. I called to complain and they sent me a revised bill that stated I owed the final payment plus $40 more.
Asked on July 19, 2011 under Bankruptcy Law, South Carolina
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
An agreement to settle a debt for a certain amount or by a certain number of payments is enforceable according to its terms. So if the agreement provided that you would be able to settle the debt in full for $X, then--as long as you honor the terms of the agreement and your obligations under it--the creditor or their agents and attorneys can't add more charges; they are bound by the agreement. On the other hand, if the agreement provided that you could settle the principal balance for $X, but that interest would continue to accrue and/or you would owe various costs or fees, that would be enforceable, too. So the first thing to do is to look at the precise agreement you entered into, to see what is enforceable.
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