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Question By
Lisa1951

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Credit Collection Alledge Debt
I have a alledge debt reported on my credit account that's in collection. I noticed that the company tacked on an additional $3000 for what...I don't know. Never received anything in writting.The Protection Act, federal law prohibits a debt collector from collecting any amount (including any interest, fees, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law.
If a debt collection agency owns your account, and you did not expressly enter an agreement to pay interest and fees to that collection agency, than they cannot charge you anymore than what the already existing balance is....which I did not.

It didn't cause a problem with my credit score nor my DTI...however I'm trying to buy a house. I'm a disabled veteran and need a home. I don't want this to be a problem with my builder's bank/underwriter. I'll be closing in about two months.

Will this create a problem for me getting this home?

Thanks

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