I have a debt collection company trying to tell me the only terms they will accept on repayment includes 22% intrest on the payments. Is this even leagle. If it is not leagle where can I find proof that I can shove in their face.
2007-01-07 13:22:05 · 7 answers · asked by dclvrt 2 in Business & Finance ➔ Credit
It's legal, they can probably even claim 30% or more...but usually this type of thing would not hold up in court if they choose to sue you. A friend of mine is an attorney and he cannot get his clients more than 9% interest on debts in courts. The judges throw it out if they try to charge more.
My advice is to stand your ground, insist on a reasonable interest rate, and be prepared to face the music if they take you to court. According to my friend who is an attorney, they will not get anything near 22% interest in court and they know it. These jokers sell you a lot of drama, but their bark is worse than their bite. Just stand your ground until you can reach a reasonable settlement and be prepared for their song-and-dance of malcontent in the mean time.
2007-01-07 13:41:23 · answer #1 · answered by KC 4 · 0⤊ 0⤋
Debt collection agencies can do an awful lot- from massive penalties to letting you off the hook for pennies on the dollar.
Contact them ASAP and see what kind of settlement they will accept. If you contact them first, you have some leverage in the matter. Be honest, try to set up a payment plan that you can live with. Aim for one that pinches you well or else they might demand one that bleeds you dry.
2007-01-07 13:35:00 · answer #2 · answered by Madkins007 7 · 0⤊ 0⤋
It depends on who the original bill is through and the laws in your state. If you signed an agreement saying that you agree to pay interest on unpaid amounts, then they have a contract and you can be held responsible for interest. Keep in mind that most collection agencies work on a percentage basis for their collectors (meaning they get a cut of whatever they collect) If you have questions on if they can actually charge you interest, you can contact the State office in your state that licenses the financial institutions (ie. banks, credit unions, collection agencies, etc.) and ask to make a complaint. Usually they will send you paperwork to fill out and once you do it they investigate whether or not the collection agency is operating within the law and if not, they can fine them, sanction them and in extreme cases they can even jerk their license.
2007-01-07 13:41:06 · answer #3 · answered by valips 2 · 0⤊ 0⤋
they could fee 'actual looking' series prices, and inspite of pastime might want to were due. This easily sounds like a strong deal in accordance to US creditors. they could upload $one thousand in prices to a $250 debt.
2016-12-01 23:45:37 · answer #4 · answered by ? 4 · 0⤊ 0⤋
yes they can i myself had a hospital bill for 900 dollars before i had insuranse and they were gonna sue me well i agreed to make payments on it and the longer i took to pay it more and more interest was being added to it and its high to i think around 10 percent per year
2007-01-07 13:26:52 · answer #5 · answered by Emilio N 2 · 0⤊ 0⤋
Yes they can continue to add interest
2007-01-07 13:33:46 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Anything in writing?
Thought not.
2007-01-07 13:24:07 · answer #7 · answered by Up your Maslow 4 · 0⤊ 0⤋