Considerations

• Most creditors indicate in their contracts that the debtor agrees to clauses that allow them to collect the original amount of the loan, amounts of interest, attorney fees and court costs. Section 601 of the New York FDCPA respects private agreements between creditors and debtors, requiring debtors to follow the credit contract. If debtors do not pay fees related to debt collection, their creditors can pursue wage garnishment and take them to court to sue for damages.
  
  

Exceptions

• A New York State debt collector can sometimes collect fees from a debtor without written consent if the debtor verbally agreed to repay the fees in the event of late payment or default, according to the New York State Division of Consumer Protection. In addition, creditors cannot force a debtor to pay fees or principle on loans older than six years, regardless whether a contract that indicates otherwise exists. If a credit contract did not specify fees, debtor collectors may only collect the original loan principle.
  
  

Limits

• Debt collectors can only charge interest fees up to 9 percent per annum in New York State. The state sets no limits on the maximum amount of other fees that a debt collector can assess, provided these fees are not frivolous and a contract, whether oral or written, outlines these fees. If a debt collection case goes to court, a city or county judge will determine whether the collector's charges qualify as just.
  
  

Remedies

• If a debt collector attempts to collect fees not authorized by the original agreement between the original creditor and debtor or the collector attempts to collect unjustified or excess fees, the debtor should report the collector to the Office of the New York State Attorney General, according to the New York State Division of Consumer Protection. The NYS attorney general or a county district attorney may revoke the collector's license, levy fines against him or charge him with an unclassified misdemeanor under Section 602 of the NYFDCPA, Penalties can be up to 12 months in jail.