Leftover payoff amount
Date: Thu, 07/09/2009 - 14:34
My girlfriend tried to payoff an account a year ago and it seems like she didn't send enough to fulfill payoff maybe because of miscalculated interest. She didn't receive anymore statements and assumed she had paid it off. Now she has a collection agency (Credit Solution Corp, and I've read some threads on them already! Seems like bad group, being very rude and making threats to her) saying she needs to pay almost $600! I thought I heard awhile back that creditors can't charge you a late payment amount if you owe only a little on your account. And most don't even other to follow up. Is that true and if so, how much is a "little". Any help is appreciated. Thanks in advance.
Under Section 808 Unfair Practices of the Fair Debt Collection P
Under Section 808 Unfair Practices of the Fair Debt Collection Practices Act under the Consumer Credit Protection Act, federal law prohibits a debt collector from collecting any amount (including any interest, fees, charge, or expense incidental to the principal obligation) unless such amount is expressly authoized by the agreement creating the debt or permitted by law.
If a debt collection agency owns your account, and you did not expressly enter an agreement to pay interest and fees to that collection agency, than they cannot charge you anymore than what the already existing balance is.
