Can third party collecter charge me interest on old debt?
Answers:
A third party cannot charge interest on an old debt. The interest stops once the final amount is reported to the credit bureau. Just politely ask for the mailing address and a contact name to send a certified letter. There are ways to get out of paying the debt but I don't believe in that. If you have a valid charge, offer to pay the amount you owe in monthly installments and stick to your word. Do this in writing, with a certified letter, but be specific you are only paying the principal not the interest. You must receive, in writing from the debt collector, they agree to this and to remove the debt from your credit report. If you do not, when you finish paying the principal, they won't remove it from your credit report and will start harrassing you again. If all else fails, just go to a debt counselor, who will talk directly to the debt collector and they can decide on a reduced amount they will accept. It cost money for the debt collector to continue to try to get a debt paid, and to go to court, so often times they take a settlement. If you are unable to negotiate a settlement, go to a free debt counselor service and they will negotiate for you. Once you get a third party involved on YOUR side, the debt collector will adhere more closely to the law, instead of fear tactics. But make good on your debt, just not the excessive interest fees.
Yes, they can, because they bought your debt from whoever you owed money to.
You should do some research on the collection laws for your state. There are Federal laws they musy follow, but some local state laws take precedence over them. That amount of interest seems unlawful. Do some homework on that. Don't pay until you get the facts!
First of all, understand this about a collection agency...their job is to collect. They do it by scaring people, but they are NOT allowed by law to send threatening letters. If they send you another letter threatening you, send them a letter stating that they are in violation of the Fair Debt Collection Practices Act and that if they send another letter threatening you, you will report them to the FTC and the state's attorney general. Keep copies of all letters to and from. Send anything certified return receipt.
SECOND and most importantly, if it is with a collection agency, you have NO legal obligation to pay. Your contract for payment was not with the collection agency, it was with the hospital. Unless you have sent a letter agreeing to a payment option or sent a payment, there is no contract requiring you to pay.
Third, when they got your account from the hospital, they purchased it...meaning they paid your debt with the hospital.
If you want to know how to deal with these people, write me and I will tell you how, when and what to do.
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