Is this legal?!?!

[ctaylor831]

What is the name of your state? Tennessee

Back in August 2003, I had an account (Rhodes) go into collection, or so I thought. I was contacted in Aug 03 by a collection company LDG Financial, and arrangements were made to pay back the account. Well, recently, as I was getting close to paying off the account through LDG, I was told that I would still owe a final balance through the original creditor (Rhodes). I was told the balance was interest charges and late charges that had been accuring since the account went to collection with LDG. Apparently, Rhodes did not place the entire account for collection, only 90% and left the other 10% sitting, however, the interest was gained on the ENTIRE balance of the account. So, what started out to be a $8,000 bill, has now turned into a $13,000 account.

What I need to know is - is it legal for them to place only part of an account, and also for them to continue to accure interest and late charges on an account that is in collection?

Thanks in advance for any advice and help

 

[Ladynred]

Rhodes is in Chapter 11 bankruptcy. They're closing 30 stores, ALL of the stores in Nashville are being closed. While I doubt its illegal for them to assign only part of the debt, its unusual. Chances are that whoever is handling their Ch 11 isn't going to be pursuing debtors to collect.. they have BIGGER worries.

The thing is, once the account has gone unpaid for 6 months, they charge-off the account as a bad debt. They CAN"T tack on late charges after charge-off !