@Anonymous wrote:So, if a debt was originally, say, $100. Then it was charged off. Then a CA picked it up and added $2000 to the debt on the credit reports years ago. BUT! When the person started rebuilding with new accounts and even AU accounts, the CA decided to start tacking on interest (years later) and doing so each month - which drops the positive points to negavtive on the scores.... is that LEGAL? I am sure it is somewhere but SO NOT FAIR. The debt is far from the original amount that was owed, and getting worse each month (according to what the CA is reporting) in spite of being past SOL. Is there ANY recourse to fight this BS? I know, I know, pay it -but the debt would actually be several hundred dollars (it was a very large amount that was charged off) even if I offered them a small percentage. I have better things to do with our money than to throw it away on old debt that will go away completely in a year or two.
Interest and fees can be tacked on forever as long as it remains unpaid or is not discharged in a BK. Being past your states SOL has nothing to do with the amount of time it can be reported on your CRs. SOL is set by each state, the FCRA sets the time it can be on file and its 7.,5 yrs from the DoFD max. If its past states SOL I would do nothing as I see you are not interested in settling it, once its dropped from your reports and if they contact you again simply send them a FOAD letter.
@Anonymous wrote:You could if you know the terms of the original contract and the interest they can charge you. If the CA is exceeding what they are legally allowed per your original agreement to charge, that is a disputable issue.
@Anonymous wrote:Boo. I was hoping I could dispute the amount or something. Thanks for your response.
You would also need to know what your states collections law is on this, there are fees and their own charges that can be added in addition to what the original agreement calls for.
@Anonymous wrote:The biggest issue I have is that it sat for a few years and didn't accrue intrest or anything for a couple of years. I started working on our credit and BAM..... they started reporting monthly and started tacking on random dollar amounts each month.
Its been accruing it all since default they just didnt have a reason to update it every month. When you started improving your credit your collection score rose triggering the updating every month, its a weapon in their arsenal to try and force you to settle it as when it reports every month it keeps your Fico score depressed and it cant recover. Credit really is a game played by all involved and once you learn the rules you can become the king.
