What Is the Limit on Collection Agency Fees in Florida?
Regulation of trade, commerce and solicitations harbor some strict laws and restrictions. Collection agencies fall under this category in what they can and cannot do according to fees and collection practices.
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Registration
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In Florida, under the 2010 Statute 559.544, no person can engage in collection agency business without first registering their business with the state. They must keep good standing with this registration, pay any fees due and provide a surety bond. Without this, the law says they will be unlawfully practicing.
Significance
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Florida established these statutes to assure that collection agencies do not engage in unlawful practices or dishonest dealings. This includes tacking on unethical fees when collecting debts or engaging in harassing behavior. As long as they are a registered agency, they must abide by state regulation of fees.
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Fees
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Payees who are attempting to collect a debt and assign it to a collection agency are entitled to add a collection fee to offset the cost of collection. According to Statute 832.10, the fee paid to the debt collector has to be a "reasonable fee in accord with industry standards, based upon the total amount collected."
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