Interest Charged is Double What is Owed on Account

by Trina
(OKC, OK)

I recently learned of tickets from 1996 that were sent to collections. The tickets were about $2,000 total but the interest charged on the account is now at $3,700. Is there no max that they can charge interest. The collections refuse any less and until paid in full i no longer am eligible for a drivers license.Can they really get away with charging that much interest??

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Jul 01, 2011
 Interest Charged is Double What is Owed on Account
by: Debtcollectionanswers.com

I am not an attorney nor am I familiar with the laws of your municipality or of your state regarding allowable interest charges on past due tickets. However, given that your unpaid tickets are 15 years old, it's possible that $1,700 in interest has accrued on them over the years. If you want a definitive answer to your question, I recommend that you contact a consumer law attorney in your area who helps people resolve debt collection matters.


Nov 03, 2011
 interest
by: Anonymous

The main thing to check is did the interest accrue over time (which is a problem) or is the collection company slapping on its own interest after buying the debt (which may be subject to state anti-usury laws).

Reply from DebtCollectionAnswers.com:

That's a good point. We've heard from consumer law attorneys that some collectors inflate debts but it can be very tricky to figure out if that's the case. (Most people don't save their original loan documents, nor do they have good records of all the activity on the account.)

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