Jump to content

Late fees on a charge off?


Recommended Posts

Guest E. Normis Debtor

If the interest exceeds the states usary rate then they violate the FDCPA. Addtionally, under most states statutes, charging a usary rate would extinguish the underlying obligation altogether.

Having said that, most people have no idea what a state's usary rate is.

Interest and late fees can be added at the rate allowed by your agreement providing they don't exceed a statutory limit.

Link to comment
Share on other sites

In addition to what Uncle Normie said, they may claim that they can use whatever state, yours or where the card originated, to claim interest. So yours may be statutory at x% but the originating state may be higher than allowed by your state's usuary laws but still legal if your cc agreement allows it or if you don't challenge it.

Link to comment
Share on other sites

Interest, yes. At the rate of the agreement. A little known Supreme Court ruling in the 1980s allows a creditor to export their state usury laws to residents of other states.

Late fees, no. Once the OC has charged the account to profit and loss and stopped billing the consumer, they can't hit you up for late fees. How can you be late on a monthly payment when there was no bill mailed to you? In the case of credit cards, the Fair Credit Billing Act kicks in and says they can charge you no fees unless they mail a bill to you timely -- meaning at least 14 days before the bill is due.

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.