adding interest after debt is in collection

by ron
(charlotte, nc)

Can a business owner continue to pile up interest on a debt once he has placed it in collection?

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May 18, 2010
interest on collection account
by: Gerri

Ron,

Thanks for submitting your debt collection question on our Q&A page.

Whether or not an account in collection will continue to accrue interest as a matter of the contract and state law. Some states are explicit about the amount of interest that can be charged on a debt and collections, while in other cases it will be a matter of what the contract said.

Nov 05, 2011
interest
by: Anonymous

There's also the issue of did the business contract with the debt collection agency to collect the debt, or did he sell it? In the first case, the business still owns the debt, in the second, they don't, and adding interest anyway probably violates _something_. But you'd need to talk to an attorney to be sure.

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