Can debt collectors apply interest on account charged off
Date: Wed, 12/21/2005 - 18:39
Now if a sum of amount is writtern off and reported to its investors as loss, how can interest be applied to it? The borrower in such a case is not even liable for the borrowed amount.
By collecting on charged off accounts, aren't lenders having it both ways? Writing it off at the same time collecting on it.
Also, how can interest be applied on principal written off. The whole collection business seems to be a scam!!
Dont get me wrong - I believe I am still liable for the principal.
Hi Under Section 808(1), a debt collector is restricted from
Hi
Under Section 808(1), a debt collector is restricted from collecting any amount unless it has been stated in the agreement contract with the original creditor or unless it is permitted by law.
If a collector is charging further on the total amount of debt, it has to be permitted by the state law even if the contract is silent. Conversely, he cannot collect any additional amount if it is not mentioned in the contract and the state law is silent.
The agreement has to be in writing. If the contract is not in writing from the original creditor, the collector must prove that the consumer is aware of the charges before he makes collection.
Regards
Roxette
Our nightmare
We bought a computer in 2000. We paid on it for a year or so. Due to financial hardships it went to charge off in late 2001. Since then it has been charged off 2 additional times(?!) Once in collections as a bad debt, we paid an additional $1000.00. Given the fact that it has changed "collector's" hands so many times over the years - we requested a complete account history. NO ONE can provide us with it. Yet, in 2005 a new "collector" took control of it and decided 4 years after the original charge off, that they were going to start charging interest again. SAY WHAT!!! We have not touched the account since 2004 because of the overwhelming increase it has sustained due to this fact. I was told once it's charged off, the interest stops on the account. It's "frozen" at the amount it was charged off at. Is this not correct?
interest may accrue after the charge off date and even after the
interest may accrue after the charge off date and even after the statute of limitations date. Almost all judgements are on accounts that have been charged off and if the contract supports it, both pre-judgement and post judgement interest may be awarded. As for deciding to add interest after 4 years...this is a dangerous thing to do. If the interest is calculated incorrectly, this can be a violation of the fdcpa for mistating the balance. Depending on your state, the account is likely barred by the statute of limitations, which can be raised as a defence against the claim.
debt collection on medical bills
I had a medical bill that was sent to a lawyer for collection. I agreed to pay $50.00/mo. They are also charging interest on this account when there was no contract. Why do I have to pay more than the original charge??
You don't. Was this agreement in writing? The only way I can t
You don't. Was this agreement in writing? The only way I can this being legal is if it was in a written payment agreement (which you should get no matter what) and if your state law allows it.
What state are you in and what interest are they charging?
charge off
I have a question. i am married and i was the prinicpal on the car loan we had. it was charged off in 2005, due to financial hardships. they sent it to a collection company and now they increased the amount by 1000. can they do this?? should i pay towards it?? it has been on my credit for 4 years.
Tammy Wilson
[email]tabathawilly@msn.com[/email]