If you have made a payment to a debt collector and been charged a service fee, convenience fee, or other charge imposed for making the payment, you might have a right to sue the debt collector.
“Pay to Pay” is the name generally given to charges that are often imposed by debt collectors when taking payments over the phone, by credit card, or through websites. But federal law, and many state laws, prohibit debt collectors from charging you any money unless it’s allowed by law or by your agreement with the creditor. So unless your state has authorized these charges, or your account agreement says you can be billed for paying your bill, a debt collector who charges you an additional fee for taking a payment from you may be breaking the law.
And there are serious consequences to that collector for breaking the law: if they took money from you illegally, you may be able to not only get that money back but be awarded additional damages. And lawsuits brought for violations like this allow the Court to order the debt collector to pay your lawyer’s fees, so often you can use to get your money back and your damages and not pay anything out of your pocket.
If you are making payments to a debt collector or have done so in the past year, contact Lawton & Cates and ask to speak to one of our consumer protection lawyers.