Continuing on with my quest for information, I find conflicting information on various credit sites whether a CA/JDB can charge interest, late fees and penalties on charged off accounts they purchase and pass along back and forth. Case in point, I have a JDB attempting to collect from me an amount that is $3200 more than the original amount charged off by the OC. In addition, they will "generously" discount the amount due back to original amount charged off by the OC if I respond within xx amount of time. Yea or nea, additional charges are allowed? Many thanks for any input.
Additional charges may be charged if the original creditor allowed for it in the contract. It is very important when you request debt validation that you get a copy of the contract to see if there is verbiage in there allowing collection fees.
Would the additional charges extend to each and every buyer of an account? For instance, if JDB1 buys a CO'ed cc account, can not collect on it but added $100 in fees and interest to the account, then sells the account to JDB2 who adds on their own additional fees, does the first 100 in fees added by JDB1 pass to the succeeding JDB2 or should that buyer start from scratch with the original amount CO'ed by the OC? Example - 500 charged off and bought by JDB1, who adds 100 for a 600 balance. Then sells to JDB2 for 600, who adds another 100 in fees and now attempts to collect 700. Should JDB2 be collecting 600 or 700 or 500? (Yes, I understand that ultimately depends the original verbiage). I hope that makes sense. Appreciate all the help.
No. When an agency gets a referred account with collection costs, sometimes up to 15% of the debt, of the principal amount. Each agency has to take the principal amount, plus interest, collection/attorney costs, and any other fees the contract allows for.
Thanks NightStar, appreciate your help. Oddly enough, original contracts/paperwork are a rare and apparently endangered species at the moment.
