Skip to content
BOL Conferences
Thread Options
#2222426 - 09/26/19 08:35 PM Ability to Charge Collection Fee
CSB98 Offline
Diamond Poster
Joined: Dec 2003
Posts: 1,337
Wisconsin
In recent discussions about charged off accounts and sending them to a collection agency, we wondered if we are able to charge a collection fee for the work that will have to be done? Does anyone charge something similar or has heard of a similar fee being charged?

Return to Top
Deposits and Payments
#2222434 - 09/26/19 10:28 PM Re: Ability to Charge Collection Fee CSB98
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
Is it in your depositor's contract?
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2222475 - 09/27/19 03:12 PM Re: Ability to Charge Collection Fee CSB98
burkemi Offline
Platinum Poster
Joined: Nov 2013
Posts: 549
I've never heard of it. But another thing to consider is potential UDAAP.

If it's a deposit account, your customer is already overdrawn and likely stacked with overdraft or return item fees. Adding more fees is likely not going to be looked on favorably.

Part 2, if it's getting charged off you likely aren't getting the money back anyway, at least not all of it. Adding more to the chargeoff is only going to increase risks, not monetary return.

Remember, in the world of UDAAP, even following the rules is not a guarantee against a UDAAP sanction if the action taken can be considered unfair, deceptive, or abusive. So the fact that it might be in your deposit contract may not necessarily be enough.
_________________________
I reject your reality and replace it with my own.

Return to Top
#2223991 - 10/18/19 06:01 PM Re: Ability to Charge Collection Fee CSB98
TeamComply Offline
Platinum Poster
Joined: Aug 2016
Posts: 540
On a related matter, how soon is a bank allowed to send a closed deposit account to a collection agency to begin collections?

Return to Top
#2224003 - 10/18/19 07:28 PM Re: Ability to Charge Collection Fee CSB98
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
It is a business decision.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top

Moderator:  John Burnett