Q: Can a collection agency legally charge a $16 convenience fee? Do I have a legal leg to stand on/ a possible case?
I'm trying to help my wife pay off some debts. We tracked down the collection agency holding a $307 debt. When we tried to pay online it stated that a $16 convenience fee would be charged for debit/credit card transactions. Its free to give them a bank routing & checking account # which I am uncomfortable doing. I looked into the legality of charging convenience fees & found some interesting facts. In New York a debtor sued a collection agency over a $5 convenience fee & won. In my research it seemed to depend on state laws. I looked up the Minnesota State law (where the agency is) and found this: In statute 16A.626 subsection (d) it states "Agencies that accept [credit/debit cards], ...may impose a convenience fee to be added to each transaction... The total amount of such convenience fee must be equal to the transaction fee charged by a processing contractor for such credit services..." It seems that this agency is charging extra on the transaction fee & thus in violation of the law
A: You may be absolutely correct. I would simply show this to the collection prople and see if they will adjust their fee. If not then you have a law suit to file, if its worth $16 to you?
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
