Interest On Charged Off Debt

by Pamela

If a credit card has been charged off and/or sent to a collections agency, can interest still be added to the balance?

Reply from

Typically collection agencies can add interest to debts. The amount is determined by state law and/or the contract you signed on the original debt. However, it's not unheard of for debt collection agencies to inflate the amount owed beyond what is permitted by law.

If you think that has happened, we recommend you consult with a consumer law attorney who can help you determine whether the collector has broken the law.

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