Can A Debt Collector Add Fees?
Any additional amounts should have a proper basis, such as the original agreement or the law, and should be capable of clear explanation.
In this answer
- Explain that added amounts need a proper basis
- Describe how to ask for a breakdown of the balance
- Help you tell genuine charges from unexplained ones
- Outline what to do if charges cannot be explained
4 min
Charges need a proper basis
Whether extra amounts can be added to a debt generally depends on the original agreement and the applicable law. Charges that are provided for in a contract you entered, or that the law allows, are on a different footing from amounts with no clear source.
The practical principle is that any additional amount should be explainable. A reasonable collector should be able to tell you what a charge is for and where the entitlement to it comes from.
At Merion we keep claims businesslike and explainable. Ask us to explain any amount on your account.
Ask for a breakdown
If you are unsure about the balance, ask for a breakdown that separates the original amount from any additional charges. A clear itemisation makes it possible to see how the total has been reached.
You might write: "Please provide a breakdown of this balance, showing the original debt and any additional amounts, and explain the basis for each." This is a reasonable request.
Genuine charges vs unexplained amounts
Some additions are legitimate, for example interest or costs expressly allowed by the agreement or by law. Others may be unclear, and you are entitled to question anything that has not been explained.
Rather than relying on invented figures or thresholds, focus on the explanation: a charge that can be tied to the contract or the law is on solid ground, while one that cannot is worth challenging.
If charges cannot be explained
If a collector cannot explain the basis for additional amounts, you can dispute those amounts and ask for them to be reviewed. It is reasonable to seek clarity before paying a figure you do not understand.
This is general information only, not legal advice. For free, independent help, the National Debt Helpline on 1800 007 007 is available, and you can visit our help centre for related topics.
Key takeaways
- Added amounts should have a basis in the agreement or the law
- Any charge should be capable of clear explanation
- Ask for a breakdown separating the original debt from extra amounts
- Question anything that has not been explained
- Dispute and seek review if charges cannot be justified
Frequently asked questions
Can interest or costs ever be added?
It depends on the original agreement and the law. Charges expressly allowed by the contract or by law are on a different footing from unexplained amounts.
How do I check what makes up my balance?
Ask for a breakdown showing the original debt and any additional amounts, with an explanation of the basis for each.
What if a charge cannot be explained?
You can dispute it and ask for a review before paying. This is general information, not legal advice.
Fair, professional, compliant — always
Merion handles every account on the facts, with respect, and within the rules. Questions? We're happy to help.