Re: Re: Re: Re: Thought credit was The Chase Specials number is 1-800-345-8089. My CL was not as high as yours but they never touched it, just upped the interest rate. Their sole reason for doing it was that they did a periodic review of my CR and it showed high balances on my accounts. No late payments, no overlimit spending. No BKs either but yours is seven years old and if they granted you credit and gave you a good rate and reasonable CL all along, they must have another reason for suddenly raising your rate and lowering your limit. Call Specials and ask if they haven't told you why they did it. Tell them you'll pay off the account and close it if they don't return you to your previous status, but make sure to tell them you would be reluctant to do that and it would be a last resort if they can't meet your terms. Good luck and let us know how you do.
Re: Thought credit was A-1 -- Now t Aren't amounts in dispute supposed to be exempt from being charged interest until the dispute is settled StarStuff ==================== I think so. Also you do not have to pay on the amount disputed. THE END ** *** ** LB 59 """"```--~~~~~~~~~--```'""'''
Re: Re: Thought credit was A-1 -- Now t As far as I know they can charge interest in accordance with whatever agreement they're operating under. Otherwise you could keep disputing and never be charged interest. Just because an account is past due or charged off does not relieve the creditor of the responsibility to pay, and the interest is the charge for you still having the use of money which should have been paid to the creditor. Just like interest in a regular account.
Re: Thought credit was A-1 Hedwig, you're so smart that I'm surprised you would make that argument. A chargeoff account, BY DEFINITION, is one that the creditor doesn't count as an asset any more, let alone try to charge interest. It's widely claimed on certain boards that it's a violation of the law to try to collect interest on a charged-off debt. And if true, that's only fair, since the CO designation hurts the debtor quite a bit, and the creditor should only use it if the debt is really charged off. Also, it's normally debtors that have a responsibility to pay, not creditors. Although creditors may have to pay if they violate the law...but somehow I suspect you weren't referring to that.
Re: Re: Thought credit was A-1 Yes, I meant debtor. And, believe it or not, the fact that they have charged off the debt does not mean that it can't accrue interest. They have removed it as an asset of the company. However, they reserve the right to bring it back on the books if collected, and do not give up the right to collect the debt and any interest it accrues. I once had a client who had a client who didn't pay him. We had to write the debt off of his books to keep from paying taxes on it. But we also added interest every month. Guess what--the client's business finally became successful, so my client was able to collect the ENTIRE balance, including accrued interest. We just had to declare the entire amount as income in the year it was collected. While you may not have to pay interest on an unowed amount, if they determine that it is your debt, interest can be added for the entire time the item was in dispute. This also applies to charges you dispute on your credit card. You don't have to pay interest while it is in dispute, but if they determine it's your charge, they can charge the interest that has accrued on the debt.
Re: Thought credit was A-1 Hedwig, Thank you for your informative response. It's good to know about some of the accounting issues involved. I was actually thinking of a different issue than the one you had addressed. I believe LBrown DID address it, in a distorted form, but not you. Sorry I assumed too much. The specific issue I was thinking of was whether a creditor, original or otherwise, can make efforts to COLLECT current interest on a debt that is being REPORTED (by a CRA) as a chargeoff. More a legal than an accounting issue.
