topic how can collection agencies increase the amount owed from original creditor in Rebuilding Your Credit

how can collection agencies increase the amount owed from original creditor

luckelle — Mon, 11 Jun 2012 09:00:16 GMT

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.

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

rckstrscott — Mon, 11 Jun 2012 09:11:19 GMT

@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

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

RobertEG — Mon, 11 Jun 2012 09:54:07 GMT

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.

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

2NE1 — Mon, 11 Jun 2012 22:12:55 GMT

@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).

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

luckelle — Mon, 11 Jun 2012 23:30:58 GMT

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.

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

luckelle — Mon, 11 Jun 2012 23:35:39 GMT

"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.

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

2NE1 — Tue, 12 Jun 2012 01:36:34 GMT

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

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

Anonymous — Tue, 12 Jun 2012 02:38:35 GMT

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...

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

rckstrscott — Tue, 12 Jun 2012 05:33:27 GMT

@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

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

luckelle — Tue, 12 Jun 2012 20:40:09 GMT

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.