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.
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.
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.