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Home >> Manage Your Money >> Personal Finance
Fee Added to Write-Off: How can I pay?
My checking account is closed and I want to repay the write-off amount, but its hard because they have turned it over to a collection agency and added $300 to the main amount. They don't want to help me to pay this bill off. I have the money, but isnt this a little much? How can I correct this problem on my credit report.
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 It is not at all unusual for a bank to refer an overdrawn account to a collection agency after it has been charged off. Depending on state law, the agency may get paid with a fee or with a percentage of whatever it is able to recover. If a fee is involved, it's not unusual or illegal in many states to add the fee to the amount owed. Whether $300 is excessive cannot be said, it depends on your state's laws and how large the overdraft was.
You should attempt to settle the matter directly with the bank, if the bank is willing to cut the collection agency out of the discussion. You may not be able to eliminate all of the $300 fee, but some of it might disappear. Just be certain that the bank still owns the account.
If the bank sold the account to the collection agency, you'll have to deal with them. Even with the agency, if that's the route you have to take, you should try to negotiate down the added fee.
Published on BankingQuestions.com 5/28/09
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