Charging interest on a chrged off acct.
Date: Fri, 01/06/2006 - 15:14
I've be told that once the creditors have charged off the debt there cannot be more thatn 10% per annum of the charge off amount added to the acct. Is this true and if so which document states this?
Tjacks, as per the state laws, collection agencies can add only
Tjacks, as per the state laws, collection agencies can add only permissible interests on the charged off debt. Details are available in the AG's office regarding the charges. The collection agencies cannot charge more than the permissible interest rates.
Besides, interests on charged off debts will be mentioned in the contract agreement signed with the creditor.
Ask the collection agency to send you the break down of the interest charges along with the debt details. Verify it before you make any payment agreement.
