Can a CA add 50% interest?

[Anonymous]

This is regarding Midland. OC sold it to them at the charge-off of $3K, Midland has accrued it to over $4,500. Can they legally do that?

In there own letter, they cite they purchased it at $3K. Any clues?

[gdale6]

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@Anonymous wrote:

This is regarding Midland. OC sold it to them at the charge-off of $3K, Midland has accrued it to over $4,500. Can they legally do that?

In there own letter, they cite they purchased it at $3K. Any clues?

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Pretty much yes, interest, fees and other collection costs can accrue to the total amount owed.

[RobertEG]

Both federal and state laws determine what a debt collector can or cannot charge.

The relevant federal statute is FDCPA 808(1), which states that it is a violation of their debt collectin practices to attempt to collect any amount, including interest or lees, that is not specifically authorized in the account agreement that established the debt or is otherwise permitted by law.

What are the express provisions of your OC account agreement?

States also set their own limitations on interest that can be charged on delinquent debt.  Check out your relevant state statutes or regulations for any limitations.