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Leon, Solicitor
Category: Australia Law
Satisfied Customers: 43755
Experience:  BEc Dip Ed, Dip Law (SAB) MTax (UNSW)
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Can a debt collection agency charge interest on legal fees

Customer Question

can a debt collection agency charge interest on legal fees and additional legal fees after the initial debt has been paid
JA: What state is this in? And when did the issue begin?
Customer: nsw
JA: Has anything been filed or reported?
Customer: original statement of claim filed 28/7/16 for balance of original debt plus legal fees and interest of $718
JA: Anything else you want the lawyer to know before I connect you?
Customer: entered into payment plan with original debt fully paid by 28/9/16. a futher $500 paid 25/10/16 and 9/11/16 $781 based on letter saying pay up $1281 or else further legal action will occur. the 25/10/16 a writt was ordered for the local sheriff to seize goods to the value of $1835.05
Submitted: 5 months ago.
Category: Australia Law
Expert:  Leon replied 5 months ago.

My name is ***** ***** I am a NSW Solicitor. I will do my best to assist you with your question.

Expert:  Leon replied 5 months ago.

Good Morning.

They can as the statement of claim allows them to do it. If the party they bought the debt from has an interest rate that you had to pay originally they can charge you that.

But under the law if you owe more than $1,000.00 the person suing you can charge you interest at the court rate and also legal fees and court fees.

The law allows it.

U hope this makes sense and is of assistance. If there is nothing further

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