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Regular Contributor
luckelle
Posts: 168
Registered: ‎12-05-2007

how can collection agencies increase the amount owed from original creditor

I checked my credit report (TU). Collection asset acceptance raised what was owed to at&t from 383 to 397. the at&t account still says 383 owed sent to collections. this is a 4 year old account. on 6/1/12 i get a score watch message saying account change. asset acceptance raised the the amount owed to 400 dollars. how can they do this when I dont owe this amount to the original creditor and this account is over 4 yrs old. Any help is appreciated.

Starting Score: 5/2012 TU 595, EQ 565, EX fako 547
Current Score:as of 9/2012, TU 626,Walmart 612, EQ 600, EX fako 623
Goal Score: 640 by dec 2013
BofA Au 13000, Amazon 600, Capt1 300, Walmart 150
When all else fails pay it!


Valued Contributor
rckstrscott
Posts: 2,659
Registered: ‎04-25-2011

Re: how can collection agencies increase the amount owed from original creditor


luckelle wrote:

I checked my credit report (TU). Collection asset acceptance raised what was owed to at&t from 383 to 397. the at&t account still says 383 owed sent to collections. this is a 4 year old account. on 6/1/12 i get a score watch message saying account change. asset acceptance raised the the amount owed to 400 dollars. how can they do this when I dont owe this amount to the original creditor and this account is over 4 yrs old. Any help is appreciated.



Collection companies are legally allowed to charge interest.

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 05/12: TU: 722 | EQ: 712 | EX: 686
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession

Still Working On: Illinois Paid Tax Lien,
Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $3900, Citi/Home Depot $2000, Capital One Cash Rewards $1500, Capital One Secured $500, Credit One Bank $500. Total Utilization: 6%. AAoA: 1yr, 7mth. INQS: 8 TU, 8 EQ, 4 EX
Mega Contributor
RobertEG
Posts: 17,456
Registered: ‎03-19-2007

Re: how can collection agencies increase the amount owed from original creditor

If the debt remains unpaid, most account agreements provide for continued accrual of interest.  Becoming delinquent on a debt does not terminate accrual of interest, as you still have their money.

 

FDCPA 808(1) states that

"The following conduct is a violation of this section:

The collection of any amount (including any interest, fee, charge, for expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or prescribed by law."

 

What does your account agreement specify regarding accrual of interest on deliquent debt?

Interest, if permitted under the account agreement, is not accruing to the debt collector if they dont own the debt, it is accruing to the owner.  What they are reporting is an increase in the amount they are authorized to collect.

Established Contributor
2NE1
Posts: 996
Registered: ‎12-06-2011

Re: how can collection agencies increase the amount owed from original creditor


rckstrscott wrote:

luckelle wrote:

I checked my credit report (TU). Collection asset acceptance raised what was owed to at&t from 383 to 397. the at&t account still says 383 owed sent to collections. this is a 4 year old account. on 6/1/12 i get a score watch message saying account change. asset acceptance raised the the amount owed to 400 dollars. how can they do this when I dont owe this amount to the original creditor and this account is over 4 yrs old. Any help is appreciated.



Collection companies are legally allowed to charge interest.

 

-scott


Is that really true? I thought CAs are legally allowed to charge interest ONLY if the OC's original contract included interest for non-payment.

 

"You don't have to pay anything more than what you owe.Collectors aren’t allowed to charge any interest or fees unless the original contract or by state law allows it. You can dispute an amount that seems unreasonably."
 
One of the 15 FDCPA Violations say: A Collector cannot ask you to pay more than you owe. The collector cannot misrepresent the amount you owe. [15 USC 1692e] § 807(2)(a).

Starting Score: 486 EQ, 529 TU, 518 EX 12/6/2011 (FICOS - lender pull)
Current Score: 595 EQ SW 1/10/13 628 TU08 1/10/2013 593 EX (BoA HP) 1/5/12
Goal Score: > 620
Take the FICO Fitness Challenge! | Diamond Spade Garden Club Member: App free since 7/2012
Regular Contributor
luckelle
Posts: 168
Registered: ‎12-05-2007

Re: how can collection agencies increase the amount owed from original creditor

Thanks for the help, but i dont understand why the charges after 4 yrs. it seems like a way to force me to pay due to the score hits of  the balance increases. The original creditor never charged anymore scence LDOD. I would PFD, but dont want the hit on my credit report if they start to play games. Anymore suggestions would really help.

Starting Score: 5/2012 TU 595, EQ 565, EX fako 547
Current Score:as of 9/2012, TU 626,Walmart 612, EQ 600, EX fako 623
Goal Score: 640 by dec 2013
BofA Au 13000, Amazon 600, Capt1 300, Walmart 150
When all else fails pay it!


Regular Contributor
luckelle
Posts: 168
Registered: ‎12-05-2007

Re: how can collection agencies increase the amount owed from original creditor

"Is that really true? I thought CAs are legally allowed to charge interest ONLY if the OC's original contract included interest for non-payment."

to: 2ne1

It must be true cause they doing it to me. never happened before with any other past collectors.

Starting Score: 5/2012 TU 595, EQ 565, EX fako 547
Current Score:as of 9/2012, TU 626,Walmart 612, EQ 600, EX fako 623
Goal Score: 640 by dec 2013
BofA Au 13000, Amazon 600, Capt1 300, Walmart 150
When all else fails pay it!


Established Contributor
2NE1
Posts: 996
Registered: ‎12-06-2011

Re: how can collection agencies increase the amount owed from original creditor

They're obviously trying to take advantage of you. You should file a BBB complain!

Starting Score: 486 EQ, 529 TU, 518 EX 12/6/2011 (FICOS - lender pull)
Current Score: 595 EQ SW 1/10/13 628 TU08 1/10/2013 593 EX (BoA HP) 1/5/12
Goal Score: > 620
Take the FICO Fitness Challenge! | Diamond Spade Garden Club Member: App free since 7/2012
Contributor
maygirl
Posts: 87
Registered: ‎04-24-2012

Re: how can collection agencies increase the amount owed from original creditor

Midland is the only creditor that I have that is continually adding interest, and they do it twice a month. The OC was Dell so I guess I need to find my original agreement, and see what it says about adding interest? Or since they have purchased it they can do whatever the heck they please! The amount owed has almost doubled at this point...

Valued Contributor
rckstrscott
Posts: 2,659
Registered: ‎04-25-2011

Re: how can collection agencies increase the amount owed from original creditor


2NE1 wrote:

rckstrscott wrote:

luckelle wrote:

I checked my credit report (TU). Collection asset acceptance raised what was owed to at&t from 383 to 397. the at&t account still says 383 owed sent to collections. this is a 4 year old account. on 6/1/12 i get a score watch message saying account change. asset acceptance raised the the amount owed to 400 dollars. how can they do this when I dont owe this amount to the original creditor and this account is over 4 yrs old. Any help is appreciated.



Collection companies are legally allowed to charge interest.

 

-scott


Is that really true? I thought CAs are legally allowed to charge interest ONLY if the OC's original contract included interest for non-payment.

 

"You don't have to pay anything more than what you owe.Collectors aren’t allowed to charge any interest or fees unless the original contract or by state law allows it. You can dispute an amount that seems unreasonably."
 
One of the 15 FDCPA Violations say: A Collector cannot ask you to pay more than you owe. The collector cannot misrepresent the amount you owe. [15 USC 1692e] § 807(2)(a).

You are correct. My statement was a little vague.

 

There are ways collection companies can charge interest, Most contracts, even cell phone contracts, have fine print indicating if you are delquent they can charge interest.

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 05/12: TU: 722 | EQ: 712 | EX: 686
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession

Still Working On: Illinois Paid Tax Lien,
Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $3900, Citi/Home Depot $2000, Capital One Cash Rewards $1500, Capital One Secured $500, Credit One Bank $500. Total Utilization: 6%. AAoA: 1yr, 7mth. INQS: 8 TU, 8 EQ, 4 EX
Regular Contributor
luckelle
Posts: 168
Registered: ‎12-05-2007

Re: how can collection agencies increase the amount owed from original creditor

Ok then, thanks everyone. i guess ill PFD and hope it all does not re-age the account if my contacting them does no good.

Starting Score: 5/2012 TU 595, EQ 565, EX fako 547
Current Score:as of 9/2012, TU 626,Walmart 612, EQ 600, EX fako 623
Goal Score: 640 by dec 2013
BofA Au 13000, Amazon 600, Capt1 300, Walmart 150
When all else fails pay it!



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