Interest Charged on a closed account

Go through the contract signed with your creditor. Read the terms and conditions that will state that your account will be charged collection fees if it is in default. If this point is mentioned in the contract, the charges should be according to the state laws where the CA is doing collections. Go through your state attorney general website and find out the legal charges allowed in collections.

Thank you for that info. I have never signed any contract though with this credit or any pervious creditor or agreed to any terms other then the initial credit card contract.

Troy, if you signed only the initial credit contract, I will see if there are any such collection fees mentioned in it if the account goes defaulted.