Utilization ratio increase due to late charges by COLLECTION AGENCY, not original company

[sely]

Is there any way i can dispute late charges on a 'charge off' that placed my balance above my credit limit...therefore raising my utilization ratio to 125%....175% and even 212%!!??

can the fees be charged after the charge off (delinquency) date?

Message Edited by sely on 05-16-2007 03:58 AM

[Noah_Bodie]

Depends upon the terms of the CC agreement, but most will allow fees to continue.

[Tuscani]

Yea.. those fees will probably continue to rise.

[sely]

so if an account goes into collections and is reported by the collection agency on my report...the collection agency has the right to ADD late fees to the balance? is that correct?

e.g.

I had a sears account that closed in 2003. the largest past balance reported by Sears is $772. the account went into collections with LVNV and they report the balance as $823.

I also have a capital one account that is in collections (nco) but is not being reported by the collection agency...it's listed as capital one...i can see how they could get away with adding late fees .... but i don't see how the collection agency for sears can add late fees.

is this legal?

[Tuscani]

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sely wrote:

so if an account goes into collections and is reported by the collection agency on my report...the collection agency has the right to ADD late fees to the balance? is that correct?

e.g.

I had a sears account that closed in 2003. the largest past balance reported by Sears is $772. the account went into collections with LVNV and they report the balance as $823.

I also have a capital one account that is in collections (nco) but is not being reported by the collection agency...it's listed as capital one...i can see how they could get away with adding late fees .... but i don't see how the collection agency for sears can add late fees.

is this legal?

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Afraid so. Charging off an acct is only an accounting procedure. You are still liable for accruing interest, late fees and over the limit fees as long as the cc agreement states it will be added and as long as your state laws allow it.

[sely]

ok. on a similar note...

an account that has closed (in good standing) reports the following:

credit limit: 2660

largest past balance: 1755

BALANCE: not on record

how is the utilization ratio figured for this?

[Tuscani]

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sely wrote:

ok. on a similar note...

an account that has closed (in good standing) reports the following:

credit limit: 2660

largest past balance: 1755

BALANCE: not on record

how is the utilization ratio figured for this?

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This is tricky.. The large balance should not be used since the CL is being reported.. my guess is this account would be simply ignored when util is calcuated.. I will find out for sure and let you know later today.

[Tuscani]

Sely - What was this account last reported? and it is closed right?

credit limit: 2660

largest past balance: 1755

BALANCE: not on record

[sely]

Yes, it's closed....as of 2001

i would assume the last report date is also 2001

the date of last payment was 1996

balance is 0

[Tuscani]

It's not being included in the revolving util calculations due to being closed with a zero balance.