Reply To: Hello I have had a creditor who has put a debt collection agency onto us for a bill that was due on 20th February 2020. We have since paid the debt in full but now I have received a bill from the debt collection agency for $200 costs and $76 interest. I’m not even sure I have sign a application for credit with the creditor as we first started dealing with them 15 years ago. Should I pay the collection fees and interest, or ask for more information. The original amount was $950.Thanks 


Hi. I’m a lawyer. Not my specialist area, but I checked with one of colleagues who does more of this stuff. Without more information, you should only be liable for these costs if you signed up (or otherwise agreed) to terms of trade which specified you could be up for these costs. As a starting point, you could reply to the collection agency advising that you paid the debt in full and asking that they explain the basis upon which they say you are liable to pay their collection fees and interest, and pointing out that in any event the fee charged is not proportionate to the amount of the debt that was owing. Good luck. Jeremy