A debt of mine from a credit card was bought by a collection agency, but on my credit report, the balance the collection agency is showing is 2x the amount of the balance they bought. Can they do this? The account was closed in 2004 and sold February of this year.
2007-08-20 21:44:08 · 4 answers · asked by Colin J 1 in Business & Finance ➔ Credit
The collector can charge interest/fees on the account IF it is notated in your original card/loan agreement with the original creditor AND if your state allows it. (if your state does not allow it, it would not matter if it is in the agreement, the collector cannot charge interest/fees)
The amount of interest/fees charged by a collector are also governed by your original agreement. (and possibly by your state statutes)
If the original creditor was reporting {for example} $1000 in January, then they sold/assigned the account to the collector in Feb. and the collector states you owe $2000, it does sound like they have fudged the numbers.
If so, they have violated a couple sections of the FDCPA (and possibly some of your own state statutes)
FDCPA that they possibly violatied:
§ 807. False or misleading representations [15 USC 1692e]
(2) The false representation of --
(A) the character, amount, or legal status of any debt; or
(B) any services rendered or compensation which may be lawfully received by any debt collector for the collection of a debt.
And
§ 808. Unfair practices [15 USC 1692f]
(1) The collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law.
2007-08-20 22:18:48 · answer #1 · answered by echo 7 · 1⤊ 0⤋
They can do that, but you don't necessarily need to pay all of it. They added bogus late fees to try to get more money from you. Most collection agencies will settle for a fraction of the balance, sometimes as low as 50% of the original debt.
Good luck!
2007-08-20 21:56:57 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Just curious but how do you know how much they bought it for?
2007-08-21 02:20:28 · answer #3 · answered by Craig T 6 · 0⤊ 0⤋
Echo is correct as always.
2007-08-21 06:08:32 · answer #4 · answered by ? 7 · 0⤊ 0⤋