can a collection agency charge interest on my old credit card?

Question

It seems the collection agency that has my credit card bill has charged thousands in interest.

Answer 1

Collection agencies, as a rule, will do anything they can get away with when collecting on old debts. If they can get away with breaking the rules and the law, as per the Federal Fair Debt Collection Practices Act, they will. Your first step is to get informed about what they can and cannot do. Your second step is to pile up as much money as you can as FAST as you can to pay this off and get these scumbags out of your life for good. If they are calling you multiple times a day, calling you at work, harrassing your neighbors and/or family members (and if they aren't yet, they will if you let this go on long enough), then put a stop to it immediately. The simplest way to do this is let them listen to a dial tone. You owe the debt, and should pay it, but that does not mean that you have to put up with bullying tactics. they use these tactics because they WORK; they are trying to get you to react EMOTIONALLY instead of LOGICALLY, and if they can get you to write them a check to them instead of taking care of the things that you HAVE to, like food, shelter, utilities, transportation, etc., they will. Talk to them once a week or so until youhave enough money piled up to settle the debt. The second they become abusive on the phone, tell them the conversation is over, and hang up (or, alternatively, get an air horn and blow it into the reciever when they start yelling - tends to make them a little more respectful).

Also, if the debt is old enough, many companies will settle the debt for less than you owe, sometimes as low as 40 cents on the dollar. IF/WHEN they agree to a settlement, get it in writing, do not send them one red cent until they send you a document with the agreed upon amount, DO NOT GIVE THEM ACCESS TO YOUR CHECKING ACCOUNT or they will clean you out, and send them a cashiers check, certified mail, return receipt requested, and make sure to save the agreement and the receipt FOREVER, because they are notriously bad records keepers, and the second you throw away the proof that you settled the debt,.it will crop baxck up again and they will claim to have no knowledge of the previous agreement.

There are tons of people out here who have had difficulty paying debts off, and many have been through what you are going through right now. So keep your spirits up, cut up your credit cards, pay CASH for things (if you don't have the cash, then you don't need whatever it is you are fixing to buy), and
this will resolve itself with a little effort and financial discipline.

Good luck!!

Answer 2

Can Collection Agencies Charge Interest

Answer 3

This question requires a little more information...
First of all, how old is the debt you're inquiring about? There are statutes of limitations on old debt.

If you have been contacted by a collection agency it's likely you are being charged interest by the original creditor. However, there are debt purchasers that will buy old debt for pennies on the dollar. Collections agencies do not charge interest, creditors charge interest. Debt purchasers on the other hand can charge interest; once they purchase the debt they become the creditor and can pursue collections as they wish... including taking you to court.

If you suspect you are being contacted by a debt purchaser, begin by requesting (in writing) the original bill - or contract. If they cannot produce it, you are likely dealing with a debt purchaser which means your debt has been written off and sold. If that's the case, it is in your best interest to write a cease and desist letter requesting that they stop contacting you.

If you are dealing with a legitimate collections agency, you also have options... you can dispute the debt if you feel the debt is not valid or you can dispute the amount of the debt. Request verification of the balance due, the collections agency has 30 days to respond to your request, if they cannot verify the debt is valid, they cannot continue to pursue collections.

Answer 4

This Site Might Help You.

RE:
can a collection agency charge interest on my old credit card?
It seems the collection agency that has my credit card bill has charged thousands in interest.

Answer 5

Not on your card. On the account that the card company either turned over or charged off. If it's charged off tell the collection agency to get lost. If it has just been turned over it was probably bought it for pennies on the dollar. Whatever you do make sure it is in writing. If it isn't in writing it doesn't exist.

But before you do ANYTHING, go to debtorboards.com and BudHibbs.com for more information on how to deal with junk debt buyers, collection agencies and collection attorneys.

Answer 6

Not only can they continue to charge you interest, they are charging you late fees and probably overlimit fees, in addition to legal and collection fees.

Don't talk to the collection agency on the phone. Do everything in writing. Send them a letter request validation, including proof they have the right to collect the debt and an account statement showing where all the extra came from.

Answer 7

It was probably the credit card that charged the interest, not the collection agency. You probably are being charged late fees, interest, and collection fees--not just interest. If you had a lower interest rate to start with, late or missed payment cause the rate to jump drastically.

Answer 8

I believe they can but there are many ways to fight back. Most collection agencies are bullies. There objective is to keep your credit score low so banks and other financial institutions can milk you for higher interest rates.

Answer 9

It does not matter what they want. If the statute of limitations expired and the collection agency cannot collect, then no one can make you pay, if you do nothing. However, if you pay even one penny, or agree to pay, then the clock starts again and they can make you pay all of it (if you paid any of it without an agreement from them to let you pay less) or whatever you agreed to pay (if you agreed to pay something).

Answer 10

Yes they can. They can even sue you. Get a 2nd job and pay them off ASAP. A little hard work and sacrifice right now can save your financial future.