• Lara: (541) 972-3351 or Michael: (503) 545-1061

Can a collection agency add interest to my debt?

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 (§ 3289(b)) permits a creditor to charge interest after default, even if the contract is silent.

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