Can anyone explain this?
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Posted by Christina
(64.12.103.27) on February 02, 2003 at 13:07:55:
When you sign a credit agreement, you agree to and are bound to the terms to the OC. If the OC sells the bad debt, the agreement ends. When an OC SELLS off a bad debt account to a CA, how is it legal for the CA to claim that they are entitled to interest and finance charges accrued from the charge-off date or in addtion to the amount of the debt they bought? There is no signed agreement between you and the CA. I can understand if the debt is "assigned" to a CA for collection, that the interest and finance charges would still accrue, because the OC still "owns" the debt. If the OC sells the debt, the ageement ends. There is no agreement between you the CA. Can't they only try to collect the amount of the debt, with any accrued interest/charges up until they purchase it? What makes it legal for them to accrue interest after they purchase it? They don't purchase and are not "assiged" the AGREEMENT, only the bad debt.
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