i Unifund picked up my debt from a credit card company and now they are charging me interest on that debt. Also they are addin something to my credit report every month. can they do that.
2007-12-04 03:06:03 · 8 answers · asked by Bambi 2 in Business & Finance ➔ Credit
Yes, in all but a very few cases the interest rate on the debt can continue to be added to the debt. It is formatted in the credit rules and conditions sent to you with each credit card. Once in default the interest rate increases dramatically and so do the misc. charges outlined in their credit terms. Once turned over to a collection company they will still accrue. The good news is that you can discuss a lump sum or negotiated settlement with the collection agency, and if most cases they will settle on about fifty to sixty five percent of the total debt. This in essence usually wipes out all the misc. charges and added on interest. The collection company will update your credit position on the card either monthly or every other month, and each time it will add another late date or another month that you are late. All these procedures and charges are again outlined in the terms of agreement when you first received your card. I suggest that you go back and read them to improve your knowledge so that when you start talking to them you will have the specifics. Good luck..
2007-12-04 03:49:00 · answer #1 · answered by H. A 4 · 2⤊ 0⤋
Absolutely - Not all collections agencies will, but most do. And they can keep it on your credit report for as long as the satute of limitations allows in the state in which the contract originates. If you opened the account in NY, any collection agency handling the account can report it to the credit bureaus for 6 years and add on interest. But I think they can only do that if it was originally an interest bearing account. They can't add on over the limit fees and late fees though.
2007-12-04 11:15:11 · answer #2 · answered by Erin H 1 · 0⤊ 0⤋
Yes they can, and they are. I use to work in collections. These companies are charging this interest because they are allowed to do so by law. See The Fair Debt Act.
2007-12-04 11:10:09 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Yes = go to Citizens Advise Bureau (CAB) RIGHT NOW .. they should be able to advise you re: getting interest & charges frozen and making an offer to pay back gradually over some years ..
2007-12-04 11:08:35 · answer #4 · answered by Steve B 7 · 0⤊ 1⤋
They can and will. But you can call them and settle in most cases Ask them to drop the interest in return for a complete payoff.
2007-12-04 11:10:27 · answer #5 · answered by voodoolori55 2 · 0⤊ 0⤋
depends on whether or not they purchased the debt
or were assigned the debt. Either way make them
validate that you owe THEM the money
www.creditinfocenter.com
buddhibbs.com
2007-12-04 11:09:45 · answer #6 · answered by Anonymous · 0⤊ 1⤋
yes in most cases they can it should be under the contract you sigend at frist taking the card
2007-12-04 11:08:31 · answer #7 · answered by Anonymous · 0⤊ 1⤋
Bambi, don;t accept this, challenge the debt in court, it is not what you originally borrowed.
If you feel the system is biased then WALK !
2007-12-04 11:40:31 · answer #8 · answered by Anonymous · 0⤊ 4⤋