April 3, 2007

Collection Balance is Higher and Higher

Filed under: Bad Credit,Collections,Credit Repair,Debt Validation,FDCPA

Hi.  Can a debt collector who recently purchased old debt from another debt collector add on interest when there were already payments being made to the first debt collector?  According to them, my debt went from $350 to over $1000 in six months.

Wendy

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Hi Wendy,

Yes, interest may be charged in accord with the original creditor’s agreement, although the collection agency must break down P & I.

Thanks for the questions and hope this helps.

Paul

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