Interest on a charged-off account
Date: Wed, 05/30/2012 - 08:39
I have two loans through Prosper Marketplace. Both are charged-off accounts placed with the same collection agency. I have been paying the collection agency for about two years. My balance with them is around $1500. My balance with Prosper is almost $4000 because they have still been adding interest. Can the originator of the loan still add interest to a charged-off account when it has been placed with an outside collection agency?
Of course they can....interest does not stop when a loan is cha
Of course they can....interest does not stop when a loan is charged off or sent to collections.
The controlling statute is FDCPA808(a). It is a violation for a
The controlling statute is FDCPA808(a).
It is a violation for a debt collector to conduct:
"The collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt of permitted by law."
What does your original account agreement expressely permit?
Are there any state codes defining legitimate charges that can be made absent an express statement in your account agreement?
Dig out a copy of your account agreement.
