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Got "response" to dunning letter from midland


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I sent a D.V. letter to midland within the 30 day period from initial contact and they have responded with a cryptic "we'll investigate" letter towards the end of their allotted time. I'm wondering if I'm wrong, but don't they have to validate the debt in the 30 day period? Should I just send the C & D and get on with it? Any thoughts are welcome.

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@NaughtyJDBtease

 

Unless your state or the credit card agreement doesn't allow them to add interest, it's not a violation.

 

That being said, it could depend upon the percentage rate being charged.  They can't charge more than the credit card agreement would have allowed for a defaulted account.

 

However, there's an interesting case from an IL federal court in which that a JDB could not charge interest beginning at the date of charge off (before they owned the account) if the OC did not charge interest after charge off.   The JDB could only start charging interest from the date they purchased the account.  

 

Here's an example:  An account is charged off on 5/01/2011, and the OC owns the account for another year but doesn't charge interest during that period.  On 6/15/2012, the account is sold to JDB.   The JDB can only begin charging interest from 6/15/2012.  They cannot retroactively add interest from 5/01/2011.

 

But you'd have to figure out if the interest added to your account is an amount that would coincide with the date of purchase.  If it appears a JDB has added interest from the date of charge off, the following case would be of interest.

 

 

http://scholar.googl...=en&as_sdt=6,41

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