My question is on a summons. The summons states the amount being sued for as the high balance on the card not the CO amount that is stated on the RCA. Can they do that? Also the summons asks for interest in the amount of 24.99% since the account was charged off. Can they do that?
They will sue for whatever the principal balance is, plus interest at the default contract rate, plus costs and attorney's fees, if allowed.
You need to find out what your state laws say about allowable interest, if anything. You also need to see what the original agreement says about interest being added to defaulted accounts. But the short answer is, yes, they can charge you the charged-off balance plus any allowable fees and interest.
