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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.

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โˆ™ 2006-04-17 02:40:53
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Q: If something has been sent to collection can the collection agency charge you interest?
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Related questions

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 collection agency charge you their fee for collection?

A collection agency can charge you fees on top of your original debt. They can charge you a fee for their collection.

Can a collection agency charge fees or interest in new jersey?

Collection agencies can't add charges. Fees and interest charged to your account are per the terms of your contract with the creditor.

Can a collection agency still add interest to a charge off?

Yes, as well as any subsequent legal fees.

Can the original creditor charge the debtor for the collection agency fee?

The original creditor can charge the debtor for all fees associated with collection as well as interest. Credit card companies will usually negotiate with you for lowered debt.

When a credit card account has been charged off can the collection agency charge you additional fees and interest?

It would depend on the state laws that are apply to collection agencies and collection procedures. In many states they can add fees incurred for the collection of a debt and interest on the amount of the debt itself.

Can a collection agency charge you with credit card fraud?


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 charge collection costs?

No they can't it's against the law. However the original creditor is allowed to add collection fees as long as the underlying contract allows for it. For example medical intake forms often allow for interest and collection fees.

Do collection companies charge interest?

i dont think so

How do collection agencies work re rates they charge the collectee and the collector?

Generally a collection agency will charge the company they are collecting for a percent off what they collect. They do not charge the person they are collecting from.

Can a collection agency charge interest of 1030 to a charge off account that has been paid down to 700 from 4514 but you missed two months?

The collection company has probably charged interest sincethe day they received the account. The interest rate can differ from state to state on a charged off account. So yes, they can but that amount is not just for two months. You need to ask for a total breakdown on the account and see if the interest charged is correct.

What does charge off of debt do for card holder?

You will still owe the money, plus interest and lots of collection charges. A collection agency will hound you for payment and you will have a hard time getting another credit card or any kind of loan.

If a collection agency sends a letter to an employer asking for personal information should the employer answer it?

If the employment agency will charge a fee

Can a collection agency report and collect a debt that is shown as a charge off from another creditor?

Yes. When creditors charge off accounts they send them (or sell) to a collection agency. The collector can request the debtor's credit report show that the account has been turned over for collection procedures.

Can a debt be listed on your credit report by the collection agency as two separate entries with one as a charge off and the other as a collection fee?

Yes, the charge off is entered by the original creditor, and the collection fee is a separate debt.

Can a landlord send an ex-tentant to a collection agency for a disputed charge?

Yes, and the tenant can tell the collection agency the charge is disputed, and that could be the last you hear from them. If not, you need to research, follow and educate them on the rules of the Fair Debt Collection Practices Act, such as filing written notice of dispute, etc.

Why would a collection agency not give you the balance of your charge off in writing?

Only the company can answer that question.

Why original creditors sale accounts to a collection agency?

Original creditors sale their accounts to collection agencies when the account has been past due and they have not effectively collected. At that time, the original creditor will charge off the balance from their accounts receivable and turn the account over to a collection agency. When the collection agency collects the debt, a portion of the amount received is paid the the collection agency and the remainder is returned to the original creditor as profit.

Can a collection agency add interest to medical bills that are not charge offs plus a down payment of 500.00 dollars or more?

No indication of where this question comes from. You will have to check the laws in your state to determine if these charges are legal.

How many times and how often can a collection agency post an account to your credit report as a charge off?

A collection agency cannot charge-off an already charged-off account. The reporting of the STATUS of the account AS a charge-off can be reported every time they update with the credit bureaus. The 'date of status' must be the date of the ORIGINAL charge-off.

Can a collection agency charge interest on an account they bought and do you have to pay them since you never entered into a contract with them?

Sorry but yes they can. In the original contract there was a clause about what actions could be taken if you defaulted on the agreement and one of those actions is that the account could be turned over to a collection agency. So, even though you didn't directly enter into a contract with the collection agency you agreed to abide by the contract and the collection agency now legally owns the contract. It works the same way as when you purchase a house. At some point the original lender on a house may sell the contract and you will be paying a different lender.

How do banks get their money back when they repossess an auto?

They sell the vehicle for what they can, then charge the remainder to you. They usually sell that debt to a collection agency, and the agency starts calling you for that money.

Is it better to pay a collection agency or let them write the debt off?

if you pay the collection agency you can get back in good credit standings , ifyou dont they can get a judgment against you, and garnish your wadges , if they do a charge off it stays on your credit for up to 10 years know and it is harder to get credit with a charge off