I received notice of a debt my husband had acquired from a physical therapy office. The debt I had learned was sent to a collections in November. This was placed in collections in my account on December 1st. Already with an increased amount of 108 dollars. I found out by calling the original company to find out what the original amount was. They send it out being the original amount. This collections agent increased it by around 70% without notifying the amount or knowledge of why. Being asked what the bill represented and he advised it was from that company. Is this legal? And what is my next course of action?
Debts can legally increase for many reasons, such as because interest accumulates, late charges apply, or 3rd party insurance anticipated doesn't come through. You sort of have to read the contract and get an accounting to determine if addition amounts are valid. You can ask the original creditor for a copy of the contract and any accounting at their end. Hope this perspective helps!
No private follow up questions or comments. Use this public forum so all the attorney volunteers can respond. The "Email" button can be used to arrange a consultation if you meet the criteria my office requires.
Debt collection can get a bit complicated b/c terms are governed by your contracts, your state law and sometimes laws of other states. maybe you could find a free legal clinic (In NYC there are a number of them). Try this website and see if they can direct you:
Any information offered is for general education purposes to assist readers with an overall understanding, and is not intended as specific legal advice. Each situation is different, requiring individual consultation and sometimes research before actual legal advice can be dispensed. No attorney-client relationship is created through the exchange of such information. Prior results do not guarantee future outcomes.
Years licensed, work experience, educationLegal community recognition
Peer endorsements, associations, awardsLegal thought leadership
Publications, speaking engagementsDiscipline