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Intrest charge


thebone
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I disputed some information on my CR and today I received a statement/letter from the CA. This is from a past bill utility bill (PB PACBELL in the amount of $350.08. They said they are going to report to all the CRA that this account is a disputed but unpaid and unresolved delinquent collection account, I then look at the amount owed and the principal Owed is $350.08 and they have added interest owed is $305.23 for a total of $655.31. This is almost 100% interested is that legal?

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Generally a CA can't add interest on their own authority but they can certainly reflect how much of a debt IS interst added by a party that does have the right to do so.

Whether adding interest to a debt is or isn't legal is dependent on who currently owns the debt, what the service agreement/contract with the original creditor says abotu interest/collection fees and your state law.

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That is also a common tactic of a CA. After they have bent you over with outrageous interest charges and ridiculous fees, they then come up with a very generous settlement offer.

In your case, it could be for something around $400 and they try to make it sound like they are really cutting you a lot of slack and that you are getting a sweet deal when in reality, they are just giving you the big chorizo.

I had that happen to me lots of times...

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