PubLedge

A debt collector subject to the Fair Debt Collection Practices Act may not charge a pay-to-pay convenience fee for online or phone payments unless the fee is either expressly authorized by the agreement creating the debt or affirmatively permitted by a specific law. Silence, absence of prohibition, and third-party payment-processor routing do not cure the violation.

What Counts

• Specific contractual language in the agreement creating the debt authorizing the particular fee
• Affirmative statutory authorization permitting the fee
• Uniform application across all payment channels under the agreement

What Does Not Count

• General right-to-collect-costs language as substitute for fee-specific authorization
• Silence in the debt-creating agreement treated as permission
• Third-party payment processor charging the fee and remitting a portion to the collector
• Later-in-time consumer agreement at the point of payment treated as §808(1) authorization
• Common-law contract principles invoked as "permitted by law"

Implementing Legal Instruments