Re: ACCRUED INTEREST..help!!

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Posted by Bill on October 17, 2000 at 03:15:06:

In Reply to: ACCRUED INTEREST..help!! posted by Missy on October 17, 2000 at 03:14:10:

:I have a charge off on my credit report that in about 5 years
:old. I am getting ready to apply for a mortgage soon and would
:like to take care of the charge off. Can accrued interest be
:added to what I already owe? Any info would be helpful!
:
:Thanks!
-------------------------------------------------------------------

State laws cover interest that can accrue if a judgment is awarded
against you in a court of law. Since you don't say, I'm assuming
that you were not taken to court.

In the absence of a judgment, the only thing a creditor can fall
back on for charging interest is the "Security Agreement" you
executed when the "charged off" account was first established. In
the fine print, it will specify what the creditor can do in the
event you default. If, for some reason you escaped signing a
"Security Agreement", then the creditor has nothing in hand to
support the interest charges and he's pretending he does.

With the foregoing having been said, I can assure you that any
creditor will fall all over himself at the mere hint that you're
ready to pay up.....especially an account as old as yours that is
probably past the "Statute of Limitation" for filing a lawsuit. In
essence, the creditor will be thankful for anything he can
get....even if it's a percentage of the principal amount owed.

If you want to play it smart, first eliminate all of the
interest......and then make an offer to settle the account for a
percentage of the principal balance. Go in lower than where you're
willing to settle because the creditor will seek to draw you into
negotiation by making a counter proposal.

If you think it's important to include in your settlement offer the
proviso that the creditor remove the adverse entry from your credit
report.... which he can do but will try to tell you he can't....
then you may have to compromise at a higher settlement amount. If
you decide to go after this, make sure you get an agreement in
writing before you send money. Once you send the money, the
creditor has no further incentive.

The bottom line, is that the creditor may want to include the
accumulated interest......but getting it is quite another matter.

Good Luck!

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Re: ACCRUED INTEREST..help!! Michael A 10/17/00 (0)

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Comments:
: :I have a charge off on my credit report that in about 5 years : :old. I am getting ready to apply for a mortgage soon and would : :like to take care of the charge off. Can accrued interest be : :added to what I already owe? Any info would be helpful! : : : :Thanks! : ------------------------------------------------------------------- : State laws cover interest that can accrue if a judgment is awarded : against you in a court of law. Since you don't say, I'm assuming : that you were not taken to court. : In the absence of a judgment, the only thing a creditor can fall : back on for charging interest is the "Security Agreement" you : executed when the "charged off" account was first established. In : the fine print, it will specify what the creditor can do in the : event you default. If, for some reason you escaped signing a : "Security Agreement", then the creditor has nothing in hand to : support the interest charges and he's pretending he does. : With the foregoing having been said, I can assure you that any : creditor will fall all over himself at the mere hint that you're : ready to pay up.....especially an account as old as yours that is : probably past the "Statute of Limitation" for filing a lawsuit. In : essence, the creditor will be thankful for anything he can : get....even if it's a percentage of the principal amount owed. : If you want to play it smart, first eliminate all of the : interest......and then make an offer to settle the account for a : percentage of the principal balance. Go in lower than where you're : willing to settle because the creditor will seek to draw you into : negotiation by making a counter proposal. : If you think it's important to include in your settlement offer the : proviso that the creditor remove the adverse entry from your credit : report.... which he can do but will try to tell you he can't.... : then you may have to compromise at a higher settlement amount. If : you decide to go after this, make sure you get an agreement in : writing before you send money. Once you send the money, the : creditor has no further incentive. : The bottom line, is that the creditor may want to include the : accumulated interest......but getting it is quite another matter. : Good Luck!

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