Jump to content

Collection Agencies Delinquent Account Upcharge


KenK
 Share

Recommended Posts

All, 

As a matter of practice, it is common for collection agencies, when contracted by other business to provide either First or Third Party services, to charge more for the collection of accounts that are already delinquent as opposed to pre-delinquent?  Just wondering.  Thanks in advance.  Ken 

Link to comment
Share on other sites

There are several factors that would need to be noted.  Some contracts state that collection fees will be added to delinquent accounts, or that the cost of collection can be added to the account.  Late fees can continue to accrue each month of delinquency.  Sometimes there is an acceleration clause that states when an account is delinquent, the entire amount is immediately due rather than just the late plus regular monthly amount.  And then there are some contract that state the interest rate will go way up to the max if the account goes delinquent which can add extra charges.

 

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.