July 22, 2019 / 11:20 PM / a month ago

Debt collector allowed to charge percentage-based fees - 7th Circuit

National Recovery Agency, a Pennsylvania debt collector, did not violate federal collection law by charging consumers fees based on the percentage of the debt collected, a federal appeals court ruled on Friday.

Plaintiffs had accused the debt collector of violating a contract that allowed it to charge only actual costs it incurred, but the contract actually allowed it to charge borrowers for “any” costs, including percentage-based fees, the 7th U.S. Circuit Court of Appeals said.

To read the full story on Westlaw Practitioner Insights, click here: bit.ly/2GmvVqg

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