What Is a Collection Fee of Payday loans in Concord, CA?
A collection fee is the amount that a creditor can add on top of the principal and interest as a penalty. This usually attaches to an overdue and unpaid debt i.e. check advance. Payday loans in Concord, California has a maximum collection fee of $15.
Why the Limitation?
The state recognizes the right of a creditor to collect a debt. As long as the methods used and the charges made are reasonable. Otherwise the debtor may end up buried in debt due to collection related expenses. Realistically speaking, this limitation is reasonable in amount and stifles the creativity of payday lenders in collecting overdue debts.