Can a bank charge off a loan, and still accrue interest and other fees years later? doesn't seem right.?

Question

how can I find out my legal rights. Thank you.

Answer 1

Charging off a loan is an accounting process for the bank. Doesn't mean you get out of any of the contract terms. Typically the bank sells off bad debt. The contract says they can. You are still bound by the contract including the interest and fees.

Your legal rights are to ask the colllection agency for validation of the debt. This will show that you signed the agreements and that they own the debt now.

You can then contact them and negotiate payment arrangements. You may be able to settle for less (50% to 75% depending on how old the debt is). Lump sum payments get better deals. Any payment plan would have to be short term. Get any settlement agreement in writing and don't give them access to your bank account.

Answer 2

Is this a trick question?
You entered into a contract when you got the loan.
They can accrue all kinds of charges for years to come or until they sue you and you end up in court and are garnished.
Until the SOL runs out you will owe that debt and they can try to collect with added fees.
Kourtnie DOnihoo
Prosperity Financial