Hey CreditNetters! I think I've seen some discussion here before - but what are the laws regarding a OC charging interest AFTER a charge-off? If it's not in your contract/application - can they do this? What are the facts regarding this? Does anyone know? Where to look? Thanks! Mommy2cats
I really don't know, but from an accounting standpoint, it really doesn't make sense. You write off a bad debt that is accruing interest but without a principal balance to figure the interest off of because hypothetically it doesn't exist anymore. It has essentially been removed from the books and expensed as bad debt. Maybe this is where the nutcase letter comes into play talking about who gets the tax deduction ...... Just a thought. Sirrowan
