OK, me again. I did some more searching and learned that the debtor is liable for collection costs, and that these costs may be up to 25% of the total debt. The math works out perfectly -- they are demanding the full 25%.
I also learned that due to "Defense of Laches" (whatever those are), even though nobody contacted my wife for many years about this debt, nothing changes and the collection agency can still ask for the maximum collection fee.
It sounds like we're probably stuck paying not only the principal and interest, but also the $2000 collection fee, which rankles a bit since it doesn't seem like the collection agency did much to earn it.
Still, if I've misunderstood something or if anyone here has any insight into this issue, please do leave a response.
Once again, many thanks.
-Fjfjdv

