Several years ago my son got into financial difficulties and he has a number of bad credit items from 2001-2002. One of these items is a charge-off with Fleet for $3,506. The account was closed in 2/2001 and charged off in 4/2002. Fleet is still reporting a balance of $3,506 on his report.
The account was sold to a CA (Credigy Receivables) in 12/02. The CA has apparently continued to accrue interest and /or fees, and they are reporting a balance owing of $8,571. Considering the fact that the CA purchased a closed (and charged-off) account, is my son legally obligated for interest that the CA has continued to accrue? Seems to me he's never had any relationship with the CA; never signed a cardholder agreement with them, etc., so if the bank closed the account the interest accrual should have stopped at that point.
This account is scheduled for removal 7/2008, so he's going to leave it alone. However, if he can request a DV and have it removed based on an incorrect amount that would be so much the better.
