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Posted: Tue Mar 28, 2006 8:34 am Subject: Progressive Management Systems

I was wondering if anyone has had dealings with them. That scored an "F" on the BBB site. What is going on is that we are making payments to them through our credit counselors and they continue to call stating that Bank of America won't work with credit counslors and we need to contact Bank of America? I just think this is strange and they are cashing the payments and even state that they are receiving payments. Basically they want to settle the account and state we are only paying the interest. The account is closed, so there shouldn't be anymore interest charged. If this is a collections company they can't add interest onto an account correct? Any suggestions or ideas would be helpful.

Posted: Tue Mar 28, 2006 8:37 am Subject:

From what I have heard, a collections company can add interest onto an account, depending on the paperwork from the original creditor though. I think Virginia-Legal-Defense will have a clearer answer for this one.

~Mary

Posted: Tue Mar 28, 2006 9:20 am Subject:

That's generally correct. Whatever the original written contract said the interest rate is, the collection agency can continue to add it in, up until the time suit is filed.

In Virginia, in an unwritten contract where there is a legal obligation to pay interest and no specific rate is provided for will still support interest charges at the "legal rate", which is defined by statute at 12% simple interest (last time I looked) - other states probably have similar provisions.

Posted: Tue Mar 28, 2006 9:28 am Subject:

Thank you for the information. So even if the account is closed, they can continue to add interest?

Posted: Tue Mar 28, 2006 1:14 pm Subject:

If the account is closed, still you owe to them. So it will be considered as a loan and unless you pay the principal off, they will be adding up interest. Any other thoughts from members?

BTW, who are you paying, the collection agency or BOA directly?

Posted: Tue Mar 28, 2006 3:41 pm Subject:

We are paying the collection agency (actually our credit counslors are). I know that I owe the money, but was curious about the interest still be added after the account was closed by BOA and sent to collection agency. I hope that is a bit clearier.

Posted: Tue Mar 28, 2006 4:51 pm Subject:

Since the collection agency is receiving payment from your counselor there is no reason for calling you for money.

As per the interest rate issue is concerned, I would also suggest you going through the agreement papers. Also ask your counselor to negotiate with them with this topic.