Can A Collection Agency Charge Interest?
Can a collection agency continue to charge interest on a charged off account?
Can a 3rd party collection agency continue to charge interest on a charged off account?
Yes, a third party collection agent can continue to charge interest on a charged off account. At the write-off point, the creditor will transfer the debt to a late-accounts department, or has the option to sell the debt to a collection agent. The collection agent will buy the debt at a discount. However, the collection agent has the right to collect the entire balance due plus interest. Writing-off a debt, or charging off, does not mean the debtor is no longer responsible for the debt, or that collection efforts cease.
I encourage you to read an article I wrote which discusses collections advice and information in detail.
I hope this information helps you Find. Learn & Save.
Best,
Bill
www.bills.com/
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