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Help with WV law re: adding interest & fees


margie1968
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I am reading conflicting information about this and was wondering if anyone could help me on this or tell me how to find this out for sure.

It's in regard to OC & CA being allowed to continue to charge interest & fees on your delinquent or charged off debts.

The AG Darrel McGraw's website has this true/false quiz on their web site and it says they CAN do that:

http://www.wvago.us/consumer/ans_creditquotient.html

A medical provider may add interest and other fees onto the amount owed if the account is not promptly paid in full.

FALSE

West Virginia law only allows creditors to add interest and late fees onto the balance owed only when the debt arises from a credit transaction.

and also this:

Credit card banks that are headquartered in other states may charge interest or late fees that exceed the

maximum rates established by West Virginia law.

TRUE

The United States Supreme Court has held that national banks headquartered in other states may "export" the interest rates allowed by their home state to other states.

but then I see a press release on his web site regarding a lawsuit and find the following information:

West Virginia law prohibits collecting or attempting to collect interest or other charges, fees or expenses incidental to the principal obligation of a debt. This law applies both to professional debt collectors and to creditors collecting their own accounts.

(http://www.wvago.us/consumernews/viewtopic.php?t=161&highlight=interest)

and then I find this on the WV Division of Banking web site.

http://www.wvdob.org/consumers/faq.htm

Is it legal to charge a debtor a collection fee or fees in West Virginia?

West Virginia State Code Chapter 46A, Article 2, Section128© prohibits a lender from charging the debtor collection fees.

and these quotes (from 9-2006) on another credit board:

West Virginia is one state I know of that actually prohibits post charge-off interest and fees. From WV AG Darrell McGraw:

West Virginia law prohibits collecting or attempting to collect interest or other charges, fees or expenses incidental to the principal obligation of a debt. This law applies both to professional debt collectors and to creditors collecting their own accounts.

I have a charge off that was $700 when CO and now has skyrocketed to over $1000 in a matter of a few months. It just keeps growing by $50-100 each month. If it IS a law in my state, I wanted to be able to cite the law in my letter and I can't really find that information. Any help? I'm new to all of this so please bare with me.

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