Does anyone know if there is a place written down that allows a company to charge interest and late fees AFTER they charge off an account? I REALLY need this info. I don't think that they should as it is illogical. "We have $12k interest receivabe without the principal balance on the books." How could a company do this? Any info would be greatly appreciated.
According to one lawyer I asked it is allowed if it's in the original agreement that you signed when you applied. It sounds horrifying but it is possible and legal in many states. If you read your agreement it 100% favors the cc or bank-we have no choice except to take it or leave it.
Yes, it is perfectly legal. The rate that is charged is spelled out in your credit contract. If you don't mind me saying so, you are confused about what a charge off means. This is a very common mistake for newbies. All a charge off means is that the creditor no longer classifies your debt as an asset on their books. It provides no relief to you, the debtor. In fact, it often triggers an escalation of collection efforts. So what is your objective with this question? Are you disputing the interest calculation?
Maybe you're trying to digest how these CCC can jack up your debt sky high. Well, in the end it's also a psychological weapon besides a financial windfall profit. They usually end up settling for a lot less or nothing at all. IMO they are playing the percentages as far as how many people thay can sucker into paying as much as possible of these exorbitant amounts. In my state this type of debt is uncollectable after 5 years as of DOLA. It remains on your CR for 7yrs but you don't have to pay it after 5. They usually end up taking a settlement around 30% of what they want, sometimes a lot less, especially if it's old. Just make sure you tie them up nicely in writing when you negotiate with them so they can't come after you again for the rest or they don't re-report it with another CA or CRA. hope this helps
This doesn't concern a debt of mine, but a debt of my boss. He had been in foreclosure for about 1 1/2 years now and the interest has accrued astonomically!
Sirrowan, You never replied on the other thread. How has he been in foreclosure for more than 180 days. That doesn't make sense.
Re: Re: Accrued interest after chargeoff humblemarc, Sorry I never replied. I couldn't get here for awhile and forgot about this thread (I have the attention span of a rock!). Anyway, I just posted some info on a thread called "Answer and Crossclaim". I forgot to copy it! Any ifo you could provide would be much appreciated. It's not like he just decided not to pay. He and his wife went through a particularly rough time. First, her mother was diagnosed with cancer and his wife took care of her mother in their home until she passed away. THEN, his father was diagnosed with lung cancer and they took care of him in their home as well. As a result, they just didn't do alot of the things that they should have. But anyway, the rest of the info is in the other thread. Thanks!
Re: Re: Accrued interest after chargeoff humblemarc, Here's the thread: http://consumers.creditnet.com/stra...ad.php?s=&goto=newpost&threadid=47068&pgnum=1
Re: Re: Re: Accrued interest after chargeoff I read on another board humblemarc is "under the weather" (hopefully, not too serious). Give it a few days and try again.
