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Contributor
tipofthespork
Posts: 76
Registered: ‎05-06-2012

Charging interest on CO

Can an OC continue charging interest on an account that has been charged off?

I thought I read somewhere that because of the tax credit, they could still collect principal but not interest on it.

Original amount CO was $3500 may 2007. Now it's $8100 June 2012.

Legal?

Starting Score: 574(may 2012)
Current Score: 574
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pizzadude
Posts: 8,544
Registered: ‎01-28-2010

Re: Charging interest on CO


tipofthespork wrote:
Can an OC continue charging interest on an account that has been charged off?

I thought I read somewhere that because of the tax credit, they could still collect principal but not interest on it.

Original amount CO was $3500 may 2007. Now it's $8100 June 2012.

Legal?

It is legal, but it should be spelled out in the original loan/credit card agreement in terms of what additional interest/attorney or collections fees can be added.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Contributor
tipofthespork
Posts: 76
Registered: ‎05-06-2012

Re: Charging interest on CO

Long story short I BELIEVE my ex-wife took this loan out in my name (I certainly don't recall doing it). It was all online, so I requested a copy of the original contract. I got it today and it's very vague. It doesn't have ANY signatures on it and doesn't state anything about fees or interest after charge off. It does make sure to state that this contract is under Nevada law.

Starting Score: 574(may 2012)
Current Score: 574
Goal Score: 640 (to start)


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Mega Contributor
RobertEG
Posts: 17,456
Registered: ‎03-19-2007

Re: Charging interest on CO

Either your contract or another provision of your state law that defines fees that can be collected will determine the legal obligation.

 

I would consult an attorney in your jurisdiction.


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