can a debt collector charge interest legally?

Question

on an old charge off account

Answer 1

it all depends on what your agreement was.
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credit cards http://credit-cards.ebookorama.com
and general debt http://finance.ebookorama.com
also plenty more to read here
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http://credit-repair.ebookorama.com
good luck!

Answer 2

Absolutely... but only within the confines of the agreement you originally signed with the creditor. To explain: Let's say you had a Credit Card (CC) with an interest rate of 24% per annum that is now in collections. The collection agency can legally collect at an interest rate of 24% and include any over the limit or past due fees also outlined in the original agreement with the CC company.

However, collection agencies will negoiate with you to the total amount of the bill because they paid only a percentage of the total amount due to get the account. The trick here is not to be nasty or unfriendly.. but remain calm as possible ask them to work with you either on a payment schedule and/or payoff. If you do a payment schedule, realize that if you miss one payment or late one payment, they will null and void the agreement and go after you for the full amount.. again. That's why they don't mind setting up payment plans.. they know if you have bad debt you probably will not make the payment plan and they can keep coming after the full amount. Each time letting fees and interest stack up.

My suggestion.. negoiate with them on a settlement amount. Then BEFORE you send them anything... ask for the agreement to be sent to you in writing.. on their company letterhead... signed by an authorized agent. When you finnaly get this letter (and they'll be reluctant to send it to you) make sure all the information is correct include the 'must pay by' date. Also insure the original account number and original lendor name is on this document. Once you have this letter.. pay it. Even if you have to get a loan to cover it.. pay it. Pay it with a cashier's check and make a copy of the check before you mail it.

I've had a recent experience with a collection agency from a debt that was over 6 years old (from a previous marriage time). I drug this process out over 6 months by asking for proof of claim and then requesting the letter mentioned above and since it was a judgement requiring that the letter provide verbiage that stated specifically the judgment would be cleared. In all that time.. every time they called... I just told them what was required and held my ground... my $7,500 debt was reduce three time and my final settlement amount was less than $2,500.

Stick to your guns.. time is a friend. I would recommend that if you get served with an offical 'lawsuit' summons... it's time to stop playing games as they now have you in a bad position.

Hope this helps!

Answer 3

how old is that debt. have you checked the satutes of limitations in your state. never admitt to the debt or pay anything unless you get a final settlement, if you do and you are passed the sol it may start over again. They will take 50% or less for sure. It will not help your credit but it is already in the pits.

Answer 4

Not unless it was called for in your original agreement or allowed under
your state's law. Many states do authorize the collection of such interest.In California, for example, collection agencies can add interest because
the Civil Code (sec. 3289(b)) permits a creditor to charge interest after
default, even if the contract is silent