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Can a collection agency add monthly interest on an unpaid balance?
Wiki User
∙ 10y ago
Yes, they can. If you agreed to it in the contract you signed with the original creditor, they can charge interest, fees, whatever... per the FDCPA:
Section 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.
A common tactic by some collection agencies is to attempt interest charges when no agreement has been made. This is a violation of the FDCPA and the collection agency can be held liable in a court of law. Read your original contract (or cardmember agreement) to determine where you stand.
Wiki User
∙ 10y ago
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Can a collection agency charge interest on a debt?
In some situations interest and accompanying collection fees can be assessed.
Can a collection agency collect late fees interest?
No.
Can a collection agency collect interest on your debt?
Yes, Collection agency can do that. But contact a good collection agency like Guardian Credit Services, they know will how to deal with customers to get money
Is it better to settle an account in collections or pay it in full via monthly payments?
Personally speaking, it is better to settle with a collection agency rather than making monthly payments. Theres only one ceveat....you must pay the collection agency in full. Example, lets say you owe $1000 to a credit card company. A collection agency will say, pay $600 NOW and this will settle the balance. So, if you dont have $600, its a 'catch-22'. You are better off making the monthly payments until the $1000 is paid.
Can a debt collection agency that bought the original debt charge you monthly interest?
YES. They can charge you the maximum interest as indicated in the bank agreement you signed or they sent as an update to you in the mail PRIOR to the collection process beginning. Usually this is why banks MAX the interest once you missed two or three payment in a row. They see the writing on the wall.
Can a collection agency report a collection and then not update it?
In Part: No it has to be updated if the balance is revolving and going up or down monthly.
How come a monthly statement is not sent by the collection agency when making monthly payments?
Because they don't. It is a lot of agency's policies.
Can you be charged interest on medical bills by a collection agency?
Yes, unfortunately a collection agency can charge interest and other fees when they obtain a debt.
Can a collection agency charge interest on a debt?
In some situations interest and accompanying collection fees can be assessed.
Can a collection agency collect late fees interest?
No.
Can a collection agency collect interest on your debt?
Yes, Collection agency can do that. But contact a good collection agency like Guardian Credit Services, they know will how to deal with customers to get money
Is it better to settle an account in collections or pay it in full via monthly payments?
Personally speaking, it is better to settle with a collection agency rather than making monthly payments. Theres only one ceveat....you must pay the collection agency in full. Example, lets say you owe $1000 to a credit card company. A collection agency will say, pay $600 NOW and this will settle the balance. So, if you dont have $600, its a 'catch-22'. You are better off making the monthly payments until the $1000 is paid.
If something has been sent to collection can the collection agency charge you interest?
If the original creditor charged interest then the collection agency will continue to accrue interest at either your states legal rate or whatever you agreed to in the original contract until the debt is either paid or sold to another collection agency or placed with an attorneys firm for legal litigation.
Can a debt collection agency that bought the original debt charge you monthly interest?
YES. They can charge you the maximum interest as indicated in the bank agreement you signed or they sent as an update to you in the mail PRIOR to the collection process beginning. Usually this is why banks MAX the interest once you missed two or three payment in a row. They see the writing on the wall.
Can a collection agency increase interest on a charged off account?
Yes.
Do you have to pay the original balance on account that has been sold to collection agency?
yes
Does a debt collector have to send you a monthly bill?
A debt collector works for a collection agency. If the angency owns the debt then you can request statements. A collection agency will send you a paid or settled un full letter. They are not a billing agency.
