Does charged off accounts still collect late fees and interest charges in addition to the original amount?

Question

I wanted to know if a credit card company charges off your account, can a different collection company pursue that same debt again years later and add late fees and interest charges and past due fees to the original charged off account?

Answer 1

A collection agency can continue to add interest and fees as long as it is in the original contract with the original creditor (which it usually is) AND as long as your state allows it.

If your state "does not" allow it, then no matter if it is in the original contract - they cannot legally charge it.

Answer 2

Yes, in most cases they will continue to add charges until the balance has been paid in full or until you have set up a settlement offer, when ever you are paying off old debts that have been hand over to a collection agency or put in a charge off then before you pay them you should always ask

If I could pay you cash with in the next couple of weeks would you settle for a smaller amount or certain % of the original amount most of the time they will settle for 75% or even 50% just to collect what ever they can and get the account closed out. Best of Luck I hope that this information was helpful to you!

Answer 3

The answer is yes. As long as there is an outstanding debt that has not been paid, the clock (and interest accrual) continues until the debt is paid.

Answer 4

no