The Fair Debt Collection Practices Act, or FDCPA, allows for two types of fees to be added to a debt while in the collection process. The first type includes interest charges, late fees, etc. -- all of those fees that are part of the original contract that resulted in the debt. The second type is any other fees that are permissible by law such as legal and collection expenses.
It sounds as if you know the debt is yours but are disputing that you still owe it, whether in full or in part. I suggest you start at the beginning, by asking the collection agency to provide you with validation that the debt is yours. If you make that request, they must send you documentation. Many times, this is missing in older debts, especially ones that have been sold over and over. If they can't provide validation, collection activities must stop.
Next, if this is a truly old bill, you might want to check the statute of limitations for collecting a debt in your state. If the debt has been sold numerous times, it could be that the debt is nearing the time when it can no longer be collected legally. When the statute is up, you can communicate with the collection agency that the debt is past the statute and is no longer collectible. This, too, will end your problem.
If you believe you have a good case for dismissal of the debt due to your reasons for disputing it, I recommend you consult with an attorney to determine if you have a case. Suing collection agencies for pursuing debts unlawfully and for other violations of the FDCPA is not unusual. In fact, the law stipulates that an individual is entitled to any actual damages and, when filing an individual lawsuit, up to $1,000 in statutory damages if you prove your case.
Of course, depending on what you currently owe, the legal fees to pursue the collector may end up costing more than your disputed debt. Only you can decide if the principle is worth what it may cost to pursue the matter legally.
In the end, I suggest you get this disputed debt behind you one way or the other, and get out there and enjoy your life.
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