credit card in collections

[dscpl316]

What is the name of your state?undefined

State if Ohio.

My question is I have a credit card debt that has been turned over to a collection agency and the amount from what I owed the credit card company is far less than the collection agency is saying. I have heard that once a credit card is turned over to a collection agency the late fees and over the limits fees cease. Is this true?

[kyle_kyle_p]

my brother in law is going through the same thing. your debt may be lower, but because you allowed it to go so far and now to a collections agency, you have to pay their fees as well as what you owe on the cc.

[Debt Guy]

The rules are different in different situations.

Generally, the original credit will stop accruing interest and fees when the account is charged off. They are still entitled to the amounts under the terms of the cardholder agreement but the banking regulators frown on the continued accrued interest.

If the debt has been sold, then the new buyer probably does not care what the banking regulators think -- so they will go back and figure out everything they can load up on the balance. They will even cut corners to make the number as large as possible. Each state has a set of laws which govern interest and fees.

You have the right to request a breakdown of all the charges. Unfortunately, there is no way you can make them provide one.

If you are sued, then you can require a complete breakdown as a part of your discovery, assuming you take that path.

What is your goal at this point? Perhaps I can offer advice to help you reach that goal.

[dscpl316]

what I am trying to do is to get the rate that I am do and not their added charges. At that point I will get with the lender and repay on a payment program. I am trying to get my credit back up to a good rating.

Originally Posted by Debt Guy

The rules are different in different situations.

Generally, the original credit will stop accruing interest and fees when the account is charged off. They are still entitled to the amounts under the terms of the cardholder agreement but the banking regulators frown on the continued accrued interest.

If the debt has been sold, then the new buyer probably does not care what the banking regulators think -- so they will go back and figure out everything they can load up on the balance. They will even cut corners to make the number as large as possible. Each state has a set of laws which govern interest and fees.

You have the right to request a breakdown of all the charges. Unfortunately, there is no way you can make them provide one.

If you are sued, then you can require a complete breakdown as a part of your discovery, assuming you take that path.

What is your goal at this point? Perhaps I can offer advice to help you reach that goal.

[Ladynred]

what I am trying to do is to get the rate that I am do and not their added charges. At that point I will get with the lender and repay on a payment program.

The rate you are DUE ??? If you defaulted on the account, then you are DUE the default rate that is spelled out in your credit card agreement. Do NOT expect them to drop the rate back to pre-delinquency, ain't gonna happen, not once its in collections. If this has gone unpaid for 6 months or more, you can forget dealing with the original creditor too.. most will charge it off and then sell it to the first junk debt buyer in line.

[Debt Guy]

I agree with Ladynred. You are very unlikely to convince anyone to reinstate the account and allow you to go back to the original interest rate.

You need to deal with this somehow or the interest and fees will keep adding up.