debt continues to gian interest after it was sent to collection agency?

[faithwales]

Hi I am Faith from NY and I am a newbie here. I have a debt in a bank that went into default and now the collection agency have it. Then they told me that the debt is continuously gaining interest. Is that possible? or even legal?

[BuckyBadger]

Why would that be unreasonable? It's debt. You didn't pay it. Why should it STOP accruing interest?

I mean -- I don't know if there IS a rule that it stops accruing interest, but it would surprise me if there was...

[faithwales]

I think there is an agreement if the collection agency are allowed to add interest or fees. So I am confused if I really agreed upon it or I have missed it when I read the agreement.

[Gailete]

I do believe that any debt that gets sent to a collection agency has no agreement concerning you and them, it is between them and the credit card company. Your agreement is with the credit card company and in that you agree to pay the prinicpal and interest, etc. on a monthly basis. Sending a bill to a collection agency only means that someone else has the work to get the money out of you since the place where you have a debt has given up on it. It is not like you had the bill cleared through bankruptcy. You are still required to pay off this bill and all attendent interest that is accruing no matter who is doing the collecting.

Or did you sign an agreement of some sort with the debt agency? Not something I have heard of before.

[bjl584]

Hi I am Faith from NY and I am a newbie here. I have a debt in a bank that went into default and now the collection agency have it. Then they told me that the debt is continuously gaining interest. Is that possible? or even legal?

If they bought the debt from the bank, then all the terms are probably the same. It will continue to accrue interest.

[faithwales]

I do believe that any debt that gets sent to a collection agency has no agreement concerning you and them, it is between them and the credit card company. Your agreement is with the credit card company and in that you agree to pay the prinicpal and interest, etc. on a monthly basis. Sending a bill to a collection agency only means that someone else has the work to get the money out of you since the place where you have a debt has given up on it. It is not like you had the bill cleared through bankruptcy. You are still required to pay off this bill and all attendent interest that is accruing no matter who is doing the collecting.

Or did you sign an agreement of some sort with the debt agency? Not something I have heard of before.

Maybe you are right, however, I signed a contract with them which maybe it includes this gaining interest. Maybe it is written on that I agreement and I just missed it.

[Gailete]

Maybe you are right, however, I signed a contract with them which maybe it includes this gaining interest. Maybe it is written on that I agreement and I just missed it.

Perhaps you sould read your copy of the agreement to see what it says, in all probablity you are required to pay interst as it continues to accrue.

[faithwales]

Perhaps you sould read your copy of the agreement to see what it says, in all probablity you are required to pay interst as it continues to accrue.

Yeah. Thanks for all your help!

[fsumom]

I work for a financial institution although I don't work in collections. However, I do know that interest still accumulates, and even fees accumulate if we have to get another company involved. Think if we have to repossess a car, who should be responsible for the fee?