WHY YOU CANNOT CHARGE DEBT COLLECTION FEES ON TOP OF A DEBT.... here is the proof

The ONLY way you are legally able to enforce debt collection fees is:-

IF your client has signed an agreement to do so BEFORE your contract/work was actioned.
  

Copy of a letter sent to ME when I queried as to the LAW
FROM :-
WESTERN AUSTRALIA POLICE SERVICE
CRIME INVESTIGATION SUPPORT PORTFOLIO
CRIME SERVICES DIVISION

COMMERCIAL AGENTS
297 HAY STREET
EAST PERTH WA 6004
TELEPHONE: (08) 9231 7199
FACSIMILE:(08) 9231 7188
 
YOUR REF:
W.A. POLICE REF
ENQUIRIES: Sergeant Glossop 6229      


Sharyn McCaskey 
Rockingham WA 6168



Dear Sharyn

Please find attached, a written response to your question relating to financial charges, which can be preferred by licensed debt collectors when collecting a debt from a debtor.
 
I must state that I am not a legal practitioner and this response is my interpretation of the Act and my opinion of how particular legislation within the Act should be applied, My following comments does not consider any written contract which may or may not be legally binding and does not consider any court orders.
 
Section 26 of the Debt Collectors Licensing Act 1964 provides the legislative authority for the Governor to make regulations necessary or convenient for carrying the Act into effect and in particular may make regulations for all or any of the following purposes;
 
Section 26 (d) of the Act states;
 
Prescribing the charges that a debt collector is entitled to charge, recover or receive from any debtor of a creditor for or in connection with the collection of a debt from the debtor on behalf of the creditor where the debt is paid by instalments and prescribing that the maximum amount thereof shall not exceed two and one half per centum of the amount of the debt and providing for a minimum charge.
 
Regulation 13 of the Debt Collectors Regulations 1964 states;
Charges by Licensee;

A licensee may charge, recover or receive from any debtor of a creditor for or in connection with the collection of a debt from the debtor on behalf of the creditor where the debt is paid by instalments a sum of 50 cents or a sum not exceeding two and one half percent of the amount of the debt, whichever is the greater amount.
 
When one also takes into consideration Section 14 of the Act, I interpret the Sections previously mentioned as allowing a debt collector to charge an amount of 50 cents or two and one half percent of the debt which ever is the greater amount if the debtor pays the debt to the debt collector by instalments.

If the amount of debt sought is paid in full, then there are no provisions in the Act to allow a debt collector to seek fees, charges, commission, reward or other remuneration ancillary to the debt itself.

Any costs associated with the collection of the debt are borne by the person on whose behalf the service is done, Section 14 of the Act requires that the creditor and the debt collector agree upon fees, charges, commission, reward or other remuneration in respect to the collection of the debt, this agreed amount cannot be added on to the existing debt incurred by the debtor.

Yours faithfully
D.W Glossop
Sergeant 6229
Commercial Agents

Call me for ANY debt collection questions you have