Why is LVNV Increasing Balance?

creditstalker · ‎08-21-2013

I don't understand it...is this a legal for them to do that?

Current FICO 08 as of 06/01/2015 TU 648 EQ 624 EX 602
FICO Mortgage Scores TU 594 EQ 540 EX 642

Shogun · ‎08-21-2013

You would have to look at the terms of your orignal lender, and the regulations of your state. If they both allow interest to be charged by the CA, then yes, they can add fees.

Starting Score: 504
July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge
Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.

RobertEG · ‎08-21-2013

Contracts that lend money or extend credit provide for the lendor to charge interest for the use of their money.

They will, in order to make the value of their investment more attractive should the consumer become delinquent and they might sell the debt, include in the original agreement that heirs to the debt can continue to assess interest. A debt collector can be both a party collecting on a debt incurrred with another, and the current owner of the debt.

If they have purchased the debt, the terms of the contract with the OC can continue if clearly authorized in that contract.

FDCPA 808(1) stipulates that a debt collector cannot attempt to collect any amount that is either not specifically authorized in the agreement with the consumer creating the debt, or otherwise authorized to debt collectors under the laws of your jurisdiction.

Scour your original account agrrement for authorization of continued interest, fees, etc.