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FDCPA: Add-On Collection Fees
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Kojetin v. C.U. Recovery, Inc., No. 97-2273 (D.
Minn. Feb. 17, 1999); affirmed 212 F.3d 1318 (8th Cir. May 18,
2000) - This case holds that add-on
collection fees must 1) relate to the actual cost of collection;
2) be itemized in the original consumer agreement; and, 3) bear
a relationship to actual cost of collections. FDCPA
violated when collection agency charged debtor a collection fee
based on a percentage of principal balance that remained due
rather than the actual cost of collection. [Description in part
from 8th Cir. Website]
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Freyermuth v. Credit Bureau
Services. Inc..
248 F.3d 767
(8th Cir. 2001). The Defendant's attempt to collect
commercially reasonable service fees, which were otherwise
allowable under the Nebraska UCC, did did not violate the FDCPA.
Collection on a time-barred debt not a violation of the FDCPA so
long as there was no actual or implied threat of litigation.
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