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balance grown by 3000.00

Date: Wed, 11/22/2006 - 05:56

Submitted by anonymous
on Wed, 11/22/2006 - 05:56

Posts: 202330 Credits: [Donate]

Total Replies: 3


i was just curious if any1 thinks it is possible for a chrged off cc balance to increase by 3000.00 in 8 months? i just recently got a letter where an oldcc card of mine got bought by another lender and trulogical is collecting for it. i did find an old collection letter i got for this account 8 months ago and teh balance was 3000.00 less. i know fees can be added on and such but that amount seems very high.


You should request a validation, and a break-down of the charges they claim owed.

Generally, if the junk buyer is not licensed as a finance company, then it is not legal for them to charge interest above, say 5%, depending on your state. (In Illinois, a bad debt buyer can charge 5%, but to charge a rate above 5% they would need to be licensed by the state).

It would seem that to get $3000 in interest over a period of 8 months, they would have to be charging a VERY high rate, which probably is not legal for them.

There is also a provision in our laws (IL) that say if they are charging interest, they need to send you a monthly statement showing the interest charged for the month. If your state has similar laws, and they haven't been sending you statements, then you have another point of contention. They would also need to comply with Regulation Z, which is the Federal Truth-In-Lending Act, to properly disclose the interest rate.

If the interest they charged is not permitted by law, then it is also a violation of the fdcpa to either 1) misrepresent the balance, or 2) charge any amount not permitted by law.


lrhall41

Submitted by DebtCruncher on Wed, 11/22/2006 - 06:31

( Posts: 2293 | Credits: )


thnx,, i sent tehm a dv letter yesterday certified mail.i live in pa and from what i found so far debt collectors dont have to be licensed in my state but i havent been able to find the max interest they can charge.i know for a fact it inflated by 3000.00 my last letter was in feb by another collection agency and i just checked my cr and the balance was the same as in feb abd i got this letter the end of oct.this is the 1st notice i received since feb.i think they may have just bought it because now my cr says bought by another lender and when i checked it in sept it did not have that on there.it seems like they are charging 34- 35% in interest or as i figured it out 374 a month in interest..do u know where i can find the laws on interest rate in pa? i dont know if theyre would be nay since they dont have to be licensed in our state


lrhall41

Submitted by on Wed, 11/22/2006 - 07:53

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