Interest on Debt?
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Posted by Uncertain
(208.186.100.218) on May 13, 2003 at 17:03:20:
This is Utah specific, but any helpful advice would be appreciated. I recently paid a debt that has been sitting around for a couple years. I paid the debt, but not the interest, noting that under the FDCPA, an agency is not allowed to collect more than the debt. The debt amount I paid matched with what was on my credit report. The collection agency contacted me back and stated that I had to pay the additional interest. I told them if they could show me a State law that said they could collect on the interest (an exemption to the FDCPA) I would consider paying it. They quoted the following: Utah Code Section 15-1-1 Interest rates - Contracted rate - Legal rate
(1) The parties to a lawful contract may agree upon any rate of interest for the loan or forbearance of any money, goods, or chose in action that is the subject of their contract.
(2) Unless parties to a lawful contract specify a different rate of interest, the legal rate of interest for the loan or forbearance of any money, goods, or chose in action shall be 10% per annum.
(3) Nothing in this section may be construed in any way to affect any penalty or interest charge that by law applies to delinquent or other taxes or to any contract or obligations made before May 14, 1981. I don’t read this as an exemption of the FDCPA... at least it’s not listed as such (don’t they have to file exemptions with the FTC?), but what the heck do I know. Can they legally collect on this? Can they submit the interest to the credit bureau as unpaid debt? If I filed a dispute with the credit bureau would the agency have to confirm that the debt had been paid (thus removing it from my credit report)? Any thoughts? Thanks in advance for any help provided!!
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