interest

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 the amount is expressly authorized by the agreement creating the debt or permitted by law.

If a debt collection agency owns your account, and you did not enter into an agreement to pay interest and fees to that collection agency, than they cannot charge you anymore than what the already existing balance is.

Judgments are interest bearing...the rate is set by state law.

also, look under your consumer protection laws as well. I know in my state, they cant charge interest.

in fact, in my state, they DC's have to prove "valuable consideration".. which totally knocks DCs out of the water, since they purchase debt pennies on the dollar. Its like buying a house that burnt down, and then suing for damages because you were dumb enough to buy a burnt down house.