Charge off with interest

Discussion in 'Credit Talk' started by Positive, May 4, 2001.

  1. Positive

    Positive Member

    if an account is with the original lendor and you are trying to pay them off, but you skip a few payments, can they charge you interest? I have an auto loan that was charged off back in 1997 and I have missed a few payments since then. I just got my payment summary and they have at least $3000.00 in interest. I thought when they charged off an amount, that is how much you owe and no more. Can someone help??
  2. 2ndIINone

    2ndIINone Member

    In most cases they can

    Sorry to say but in most cases yes they can. I went over an auto loan contract from a large lender last month, which had it in writing that the interest rate could and would be in effect even after the loan went into default and after the repo as well.

    This may not be true for all contracts but most do have this.

    Have you called them and tried to work out a one lump sum pay-off amount for say 30% to 50% of the charged off amount excluding an interest?

Share This Page