I had a credit card and a line of credit charged off back in 2002. I have kept making monthly payments to them since then. Back in 2005 the last written communications for both accounts had each balance in the upper $8000 range. Now a debt collection agency that has been trying to collect on the credit card(I haven't sent a payment to, I send it straight to the credit card co.) has now sent a statement for some account with a balance of$10162.57 and no reference that would clue me in on what account it could be for. The line of credit's bank in the past few years has been bought out by the bank that has my credit card account, recently sent an offer to settle the account for $2000, but didn't list the current balance. I couldn't pay that and continue to send a monthly payment. Whichever this account it is about, the amount is what is puzzling me and leads me to asking my question.
2006-09-10 05:36:11 · 7 answers · asked by dsreed 1 in Business & Finance ➔ Credit
As long as it is in the "original" creditors contract stating that fees and interest can be added to a defaulted account by a collection agency AND as long as your states statutes allow it, then yes, they can add fees and interest.
If your states statutes "do not" allow it, then they "cannot" add interest and fees, no matter what the original creditors paperwork states.
You are within your rights to send the collection agency a debt validation letter to explain what the account is for, the amounts etc.
You are also within your rights to send the original creditor a debt verification letter.
2006-09-10 08:17:13 · answer #1 · answered by echo 7 · 0⤊ 0⤋
Yes there is interest that continues to add up until the amount is paid off . Thats why i wont own a credit card because of the interest rates when your just paying the balance shown, your only paying enough just for the interest..thats why they tell you you can pay more then whats shown. The only fees im aware of besides the interest fees is late charge fees.
I would call the bank at wich your recieveing the payments and ask them your amount you should also be recieveing monthly statements for your account that should show the amount owed.
2006-09-10 05:47:30 · answer #2 · answered by tess 5 · 0⤊ 0⤋
if a collection agency is trying to collect on this debt..you do not ever send a payment to the credit card company. is the account charged off??? they are just taking your money. to get some of it off of your credit you need to find an attorney or just file bkruptcy. i am a collector on credit cards for emerge aspire visa and tribute gold. i ahve seen these credit card companies hold statements back so you will get the late fee plus if you are over limit on your account they take you to the cleaners. if you have a collections agency on it don't send them payments either...settle it with and it will still affect your credit too. you are sure enough buying credit. good luck to you.
2006-09-10 07:07:41 · answer #3 · answered by princesswhitepaw 3 · 0⤊ 0⤋
If you have been making regular monthly payments, your account was not charged off. If it had been, making regular payments would have reinstated the account. If you have been dealing directly with your original creditor, it recommend telling the collection agency that you will not deal with them at all until you receive documentation that they hav purchase the debt. Do this in writing and sent it certified mail with a return receipt.
2006-09-10 05:45:02 · answer #4 · answered by STEVEN F 7 · 0⤊ 0⤋
well when you pay off an account to need to get the 5 day payoff amount. this is standard practice because credit cards compound daily and if you get your bill today it will be different when the mail gets there. so there can be interest after you payoff. but not sure what you mean by charged off? and why would a credit card company send you to collections if you have been paying them. you sound real confused about it all. are you sending them to the right places or what. sounds like you got something for someone else or you have not been paying.
2006-09-10 05:41:19 · answer #5 · answered by gsschulte 6 · 0⤊ 1⤋
Believe me, until it is paid off, interest will continue to accrue. I had the same experience a few months back. Your best bet is to ask them to setup a payment plan that would allow them to stop the interest. For more free financial advice, check out my website at http://www.easymoneyadvice.com
Thanks
Cory
2006-09-10 05:39:21 · answer #6 · answered by cory c 1 · 1⤊ 0⤋
Yes!!!!! It sucks.
2006-09-10 05:55:47 · answer #7 · answered by B.J. H 2 · 0⤊ 0⤋