Midland/Dell Financial Services Chargeoff/Midland reporting wrong balance

[aimeelynne756]

This account was orginally reported by Midland with a balance of 863, then it was removed and reported under Asset Acceptance with a balance of $1,839 and then now its under Midland again with a balance of $1,839. I have proof that the chargeoff balance is 863. I called Midland and they are trying to say that the reason the balance is so much higher is because of the 12% interest rate. I have a hard time believing the balance increased that much because of interest. Any recommendations how I should proceed? I was trying to settle but the settlement amount they are offering me is more than the orginal balance. According to my Transunion report that I obtained in January it is schedule to be removed in 09/2015. Should I just let it fall of my report or should I file a dispute for the balance? Or do something else? Any suggestions will be helpful.

[Shogun]

I don't see a reason for a dispute.  Unless it was expressly forbidden in the original agreement, or barred by your state, they can add interst.  If it is passed the SOL of your state, I'd try to settle the debt for a percentage of the original amount.

[aimeelynne756]

I believe I stated in the original post that I didnt believe the balance is correct. How can a balance more than double in a few years with a 12% interest rate?

[RobertEG]

FDCPA 808(1) states that it is a violation for a deb collectot to attempt to collect any amount, including interest or other fees, unless it is specifically authorized in the account agreement that created the debt or is oherwise permiited by law.  The statutory requirement is for specific authorization, not  the lack of unauthorization.

Pull a copy of your original account agreement for statement of interest that is specifically authorized.

Then check out whether any other amounts are specifically authorized to debt collectors under the laws of your state, such as by contacting the local regulatory agency reponsible for issues pertaining to consumer debt.

Unless specific provision exists in the account agreement or is authori\ed under the laws of your state, attempts to collect such amounts are a violation of FDCPA 808(1).