My creditor is threatening to close my Visa account. They also warned that all interest and fees (late charges, over limit fees) will continue to accrue. Can they do this? After a certain point, don't these stop?
until the balance is paid off in full, they will continue to charge interest and fees if late or overlimit. Just because an acct is closed, doesnt mean there wont be interest anymore.
But....is this true even if the account is referred to a collector? I've had accounts before which were referred to collection, and there was a flat amount which no longer accrued interest or fees. It seems like I have the option to continue paying as much as I can, in which case Getsmart will keep charging the fees, and my balance will go up instead of down....or I can refuse to pay until the account is sent to a collection agency, then work with the agency and take the strike on my credit report. (even then, in the past I've had some success in getting collection agencies to remove derogatory reports.)
§ 808. Unfair practices [15 USC 1692f] A debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section: (1) 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 or permitted by law. The key here "permitted by law". Unless your state specifically prohibits them charging interest, yes they can. Gib
