Dumb Question about accounts after charge off

No question is a stupid question, if you don't know the answer to it. I, like you, do not know the answer and will wait for replies from others.

Hi Guest, even I'm also not a finance expert but I think they may continue charging interest along with late fees and presumably over limit fees. However, it depends on the state laws applicable to the collection agencies and also on the collection procedures involved. As in many states the CAs can also add the fees incurred for the collection.

Who do you refer to as 'they'?

The creditor would keep charging interest on the late account till it is charged off. Once the account is charged-off and sold, they would lose all control over it and hence can't continue charging interest on it.

Similarly, the collection agency or the JDB isn't normally allowed to add fees and charges to the collectible account. But, in order to confirm it, you must recheck the loan document you have. As Chris has rightly mentioned, some collection agencies might legally add fees if it is described on your loan document and allowed by the state laws.

yes they can still charge interest after the debt charges off, most some also dont

discover for one does not charge any interest or late fees once the debt charges off, but they suck when it comes to settlements so its a catch 22

its nice to see that a debt hasnt gone up in many years when settled but never get your hopes up