Re: Interest and charges after charge off

Posted by info (68.106.21.79) on October 01, 2003 at 00:59:45:

In Reply to: Interest and charges after charge off posted by Bob3 on September 30, 2003 at 23:40:01:

It depends on how your account was originally set up. Refer to your “Cardmember Agreement”, the multi-paged, tissue thin paper contract written in microscopic print that states all the terms and conditions of the account sent to you with your original piece of plastic. The first use of the card is your binding acceptance of this contract.

For example, some account balances may have frozen at the amount they were at charge off. Others may be on a month by month geometric progression towards balances of infinity. It depends on whether the original contract allows the creditor to continue to charge interest and penalties after charge off.

Be wary of debt collection agencies that “buy” your debt after the Original Creditor. They always add interest and penalties no matter what was in the original contract. That gives them continued leverage to pressure you into a settlement as you watch your balances balloon. They often have no legal basis for adding this continuing interest and penalties unless it was specifically written into the original “Cardmember Agreement.”

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