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Can they do this? (in TX)


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I got proper DV from a collection agency (signed contract, all fees listed by the OC, ect.). However, I also got from the collection agency, the following list of fees from them. Can they do this (this is exactly how they laid it out in their “worksheet”)?

1) Amount owed Apartment complex $470.68

2).Amount to submit to ProCollect for collection $827.21

(Line 1 x 1.757469)(basedon 40% collection fee

and 7.75% tax)


3)Apartment complex’s 60% share of amount $496.32

sumitted (that’s how they spelled it!) for collection

4)Less 7.75% sales tax on ProCollect’s 4% fee $(25.64)

5) Net amount due on Apartment complex $470.68

(Line 1 must equal Line 5)

Can they charge an additional 40% on the balance owed the OC? Can they charge sales tax?? I’ve never heard of that. I was under the impression that the CAs take their cut out of the amount owed the OC. I didn’t know they could add on their own “commission” fee. Is this legal??

A balance that started out as $470 is now $827!

Please help me understand this (I live in TX and the apartment complex is in TX as well).

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it really depends on if the contract that they are basing the charges upon has a clause that you will pay collection costs, usually it will state a percentage. check your contract. if there is nothing stated then they cannot charge you collection fees.

and i must say sales tax sounds a little odd, they arent selling you anything!!! sales tax for TX is 8.25% so where are they getting the 7.75% figure.. what state is the CA in? I didnt think you charge a sales tax across state lines.. these are questions to ask.

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