i have an old charge off that one collection agency is trying to collect on and everytime they send me a letter the amount is about 100 higher.
2006-09-08 10:42:39 · 7 answers · asked by ms.takes 1 in Business & Finance ➔ Credit
I don't think it's legal, but check with a lawyer on that one.
2006-09-08 10:47:47 · answer #1 · answered by Voice 4 · 0⤊ 1⤋
Before you do anything...check on the statute of limitations in the state where the debt was created. Not where you are currently. Each state has its own statute. The period usually starts when you made the last payment on the account. If you are beyond the statute...pay the collection agency NOTHING...there is no longer a legal debt that is collectible. These agencies are ruthless...if you pay them a penny the meter starts over on the statute of limitations.
Good luck....but be sure to check the state where you orginally incurred the debt as it varies from state to state and also by the kind of debt...credit card, installment loan, mortgage loan, etc.
Look at the following site before you do anything...
2006-09-08 11:05:35 · answer #2 · answered by mick 1 · 0⤊ 0⤋
I don't think that is right. their fee comes out of the percentage they collect, usually fifty percent. If it is a student loan then the government has added on the penalties. the agency itself can not add on penalties. They are trying to put the screws to you. Call the people who you owe and tell them about it. You can also make them an offer. Since the collection company will keep 50% or more offer to pay 75%. Make sure you have the company tell the collection agency that the matter has been resolved. If it gets real bad file bankruptcy.
2006-09-08 10:57:28 · answer #3 · answered by Thomas S 6 · 0⤊ 0⤋
It depends on if the original contract called for it and if your state law allows it.
Others have mentioned about the statute of limitations. That is a very good idea
I do want to correct something tho
The statute of limitations starts from the time the payment that led to the chareoff or default was made. If you make apayment now it doesnt restart the statute of limitations.
If the statute of limitations(SOL) has expired then they cant sue you. All they can do it call you. You can then send them a letter called cease and desist which means they arent to call you anymore.
If after sending this letter you still get calls record the date, times and names and what was said( you can do this in writing) and turn it over to a lawyer to sue them.
I had one calling me last years He didnt know that I had done collections for 10 years and knoew the law. They made several threats. I sued them and wom Paid for my kids Chrsitmas last year
Not to spam but I have some article on my website to help people with collection isssues
www.jaxconnect.com
2006-09-11 15:38:10 · answer #4 · answered by sum1infla 4 · 0⤊ 0⤋
It is legal for collection agencys to charge interest IF the contract that you had with the "original" creditor states that they can AND if your state statutes say they can.
If the contract says yes, and your state statutes say no - the state overrides the contract.
I agree with the other posters that you should check the statute of limitations for collecting in your state. If you are out of SOL, they can continue to try and collect, but they cannot legally sue.
2006-09-08 12:51:04 · answer #5 · answered by echo 7 · 0⤊ 0⤋
Depends on the statue of limitation and what was the contract for the original debt, if it is an old debt the statue of limitations may have expired and then they can't sue or anything.
2006-09-08 10:53:17 · answer #6 · answered by Theresa B 2 · 0⤊ 0⤋
yes, they can do it. they can add on late fees because technically you are late every month you don't pay that bill. interest rate is decided by your state. you need to research the statue of limitations in your state and it will say what the creditor can legally charge in interest.
2006-09-08 15:27:25 · answer #7 · answered by bella_4624_19 4 · 0⤊ 0⤋