LVNV charging interest
Date: Thu, 07/08/2010 - 19:01
I had a credit card with Meijer and the account now belongs to LVNV funding/Resurgent. I am trying to pay this debt and i just found out that I am still being charged interest! When I asked about the legality of this, I was told that "the account is collecting interest" not them... how do i prove that they cannot do this? Or can they do it legally?
Quote:Or can they do it legally? Yes, the collection agnecy can
Quote:
Or can they do it legally? |
Quote:
how do i prove that they cannot do this? |
Given that it is LVNV, the debt may be close to or outside the S
Given that it is LVNV, the debt may be close to or outside the SOL. Also, they probably do not have the documentation to validate. You would be better off to make them validate before you make any payment and risk resetting the time clock on the SOL.
I found this when checking about the legality of their charing i
I found this when checking about the legality of their charing interest.
FAQ #6
Can debt collectors add surcharges (interest, fees, charges or expenses) to the original debt?
[INDENT]Section 808(1) prohibits collecting any amount unless the amount is expressly authorized by the agreement creating the debt or is permitted by law.
[INDENT]1. Kinds of amounts covered. For purposes of this section, "amount" includes not only the debt, but also any incidental charges, such as collection [53 Fed. Reg. 50108] charges, interest, service charges, late fees, and bad check handling charges.
2. Legality of charges. A debt collector may attempt to collect a fee or charge in addition to the debt if either:
[INDENT](a) the charge is expressly provided for in the contract creating the debt and the charge is not prohibited by state law, or
(b) the contract is silent but the charge is otherwise expressly permitted by state law.
[/INDENT]Conversely, a debt collector may not collect an additional amount if either:
[INDENT](a) state law expressly prohibits collection of the amount or
(b) the contract does not provide for collection of the amount and state law is silent.
[/INDENT]3. Legality of fee under state law. If state law permits collection of reasonable fees, the reasonableness (and consequential legality) of these fees is determined by state law.
4. Agreement not in writing. A debt collector may establish an "agreement" without a written contract. For example, he may collect a service charge on a dishonored check based on a posted sign on the merchant's premises allowing such a charge, if he can demonstrate that the consumer knew of the charge.
so now i am curious as to which anser is right....
[/INDENT][/INDENT]
