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Regular Contributor
Posts: 128
Registered: ‎12-29-2011
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Finance & Late Payment Charges after an Account is charged off?

Hello My Fico Forums,

I definetly need some help! I have been sending GW letters to an old paid credit card that was charged off 5 years ago. They have denied every single one of my requests but the rep advised my to go through the account and if I felt there were any errors on their part they would be willing to investigate them. "They can only delete/update incorrect information." Just out of curiousity I pulled out all my old statement copies.


On 3/14/2007 the account was sold to a collection agency who sent me a "dunning notice" and I made payment arrangements with them. However, even after this the OC continued to send statements and they charged me interest, late payment and account protection fees each month.


This was a horrible year for me and I had alot of personal things going on so I guess I never realized or paid attention to the statements. Dumb, I know.


Is this legal? I assumed after the debt is charged off they could not do this.



Community Leader
Epic Contributor
Posts: 29,743
Registered: ‎03-19-2007
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Re: Finance & Late Payment Charges after an Account is charged off?

A charge-off by a creditor is solely an internal bookeeping measure on their part.  It does not in any way relieve the obligation of the consumer for the entire debt.

It does not void the account agreement or its terms. 

Yes, they can do that.

Regular Contributor
Posts: 128
Registered: ‎12-29-2011
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Re: Finance & Late Payment Charges after an Account is charged off?

Thanks Robert EG for that info. I definetly understand that we still have an obligation to pay the unpaid balance. However, with all the collection agencies I dealt with that year, I never had an instance where I was paying the collection agency and still accruing late fees and interest from the OC.

Frequent Contributor
Posts: 462
Registered: ‎01-27-2012
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Re: Finance & Late Payment Charges after an Account is charged off?

It depends on who the OC is and how long the payment arrangement is. For example, my Citi CO went from 5500 to 7500 in interest and late payment penalties but when I finally had money and contacted the CA, Citi stopped charging interest because I'd be paying it within 2 months. However, another OC I'm dealing with is going to continue charging me 10% interest until the balance is paid.
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