Debt Collection Agency administration charges

[Snapples]

Can a Debt Collection Agency add administration charges to debt?

[paulajayne]

Yes, reasonable ones as they do not work for free.

More info needed ---

[efpom]

If a contract exists or existed between the creditor and the debtor AND that contract allows for the creditor's costs in collecting the debt, then those costs can be added to the quantum of the debt. Because the DC acts as the agent of the creditor, it ha no 'stand alone' right to add IT'S fees to the quantum of the debt.

[Snapples]

Yes, reasonable ones as they do not work for free.

More info needed ---

The letter is from 'arvato' regarding an outstanding EE account, It appears that EE have added the admin charge to the outstanding balance before passing it to 'arvato' to collect.


Dear Snapples

We wanted you to know that we are here to help you with your overdue balance on your EE account. The outstanding balance includes an administration charge of £165.16 to compensate our client for the cost incurred recovering the debt.

[efpom]

What does the contract say about administration charges?

[Snapples]

What does the contract say about administration charges?

I will have to get a copy of the contract from EE