B. PART II: COSTS For starters, a few words about nomenclature. The dictionary defines the term “cost” in three ways: 1 a : the amount or equivalent paid or charged for something : price The average cost of a college education has gone up dramatically. b : the outlay or expenditure (as of effort or sacrifice) made to achieve an object He achieved fame, but at the cost of losing several friends. 2 : loss or penalty incurred especially in gaining something the cost of lives during war 3 costs plural: expenses incurred in a judicial process; especially: those given by the law or the court to the prevailing party against the losing party.[1]  In light of these various meanings, any expenditure associated with recovering an obligation might be referred to as a “cost,” a “charge”[2] or an “expense.”[3] Further, the plural term “costs” is typically understood solely as a shorthand reference to “court costs.”[4] Whether referred to as a “cost,” “charge” or “expense,” an expenditure may rise in several ways – by statute or court rule (such as costs for filing or service of process), contractually (such as agreed for appraisals, inspections or obtaining a credit report), and in processing a transaction, such as interchange fees, insufficient funds charges, and electronic payment expenses. For the purposes of this part of the article, I will confine my discussion to the collectability of one specific type of expenditure – statutory costs – and will defer discussion of contractual and transactional expenditures Read More......
Categories : Blog, Consumer Debt Collection, Fair Debt Collection Practices Act (FDCPA)
No Comments
A MISSIVE ON COLLECTING INTEREST, COSTS AND FEES IN OHIO PART I: INTEREST   15 U.S.C. § 1692g(a)(1) requires a written notice containing the amount of the debt.[1] 15 U.S.C. § 1692e requires debt collection communications be in a form that is not false, deceptive or misleading,[2] and § 1692e(2)(a) prohibits false representations about the amount of the debt.[3] 15 U.S.C. § 1692f(1) prohibits the addition of any amount to the debt that is not contractually authorized or permitted by law “including any interest, fee, charge, or expense incidental to the principal obligation.”[4] Despite these seemingly benign strictures and simple requirements, getting the amount of the debt correct and conveying that information clearly in a form that is accurate, cannot be misconstrued and has only one meaning, is exceedingly difficult.[5] The amount owed may be comprised of many components, some of which are static, and others are dynamic; some obligations to pay interest, cost or fees are animated by written agreements, while others are permitted or provided by law. Some obligations to pay interest, cost or fees have accrued and are due now,[6] while others are contingent on the happening of an event in the future, such as a prior demand[7] or the rendition of judgment.[8] Compounding the complexity, a claim to interest, cost or fees may depend on who you are –the original creditor, an assignee or the debt collector; the rights of the original creditor may not flow to the current holder of the debt.[9] Moreover, while the Read More......
Categories : Consumer Debt Collection
No Comments