The last credit card statment I received in 2004 showed that I owed about $6,000. Since then I heard nothing .After 21 months later I received a letter from a collection agency claiming about $8100. How is it calculated (I was resided in Caifornia)?
2006-09-19 15:33:49 · 4 answers · asked by averageMandy 1 in Business & Finance ➔ Credit
Did you think they were going to forget you and that $6000? No they just kept ticking away interest at about 20% per year until they caught up with you again. If you didn't want to pay more interest you should have been dealing with them in the meantime. The calculation was as per whatever agreement you signed. That probably also adds in the cost of collection and attorney's fees to sue you (typical in those agreements). Usually the collection agency goes to court and gets a judgment against you that they try to collect by garnishing your wages.
2006-09-19 15:39:32 · answer #1 · answered by Rich Z 7 · 1⤊ 0⤋
That is actually not a bad rate for a credit account in default. I think that works out to about 15%
2006-09-19 22:44:18 · answer #2 · answered by Evil Homer 4 · 0⤊ 0⤋
the fees for collection agency,fees for interest,ect...
2006-09-19 22:37:47 · answer #3 · answered by Nails 4 breakfast,tacks 4 snacks 4 · 0⤊ 0⤋
Consolidate your debts
2006-09-20 08:51:16 · answer #4 · answered by Anonymous · 0⤊ 0⤋