PostHeaderIcon if your credit card goes into collections can they keep accruing interest?

I had some hard times and was unable to pay my bill. For example, I have paid roughly 2000.00 or more towards and 849 dollar purchase from dell. I went into debt consolidation and they were paying them one dollar short every month so dell was charging me late fees for 20 months! I never checked my dell statement because I figured it was taken care of. 20 months later I checked my statement thinking i must be nearly paid off and it was like 1500.00 still. I was like no way am I paying that and now its in collections for 2347.00! What should I do and why and the hell would I end up paying over 4500 dollars for a computer that is probably worth 200 bucks now. These credit card companies are crazy and the government needs to reinstate the usary laws.

5 Responses to “if your credit card goes into collections can they keep accruing interest?”

  • maxmom56 says:

    Yes, it continues to accrue interest just as a judgment will continue to accrue interest if they sue you and win. You borrowed money. Why do you think the interest would just stop?

  • acermill says:

    Ummm… didn’t check your statement for twenty months, and now your problem is someone else’s problem ? Do you understand that ‘debt consolidation’ does not transfer responsibility from you to them ? These are still your bills, and you need to watch what’s going on.

  • Barcadcadacada says:

    You’re paying 4500 because you didn’t pay attention to the statements. They are not responsible for the depreciation in the value of the computer, nor is the government. The cc companies are crazy, but you should have called them when you saw the problem and they may have offered some relief.

  • Marictr says:

    First call the credit card company to see if they can do anything. Then try calling a non profitable credit card counselor. They might be able to negotiate with the credit card company to make some deals. Also you can get your credit report and contest a bad credit score. Try to keep on top of these things in the future.

  • A.R. says:

    First of all, if the account is already in collections and it has already hit your credit report then paying on it does NOTHING to improve your credit score. Not a thing.

    The collection agencies can charge interest, but they can’t charge interest on interest charaged by the original creditor. Look into this and find out how much of that original bill was interest and then do the math on the new account. I’m willing to bet they are doing just that. Once you can prove it, contact the Credit Reporting Agencies and show them what you have discovered. Hopefully they will remove the tradelines.

    Otherwise, if the collections account has already hit your credit report then you need to forget about it. Sad as it may seem, all you would be doing at this point is flushing more money. It will fall off in 7 years anyway. Plus, you can always dispute the account, request validation from the collection agencies AND the CRAs who are reporting the debt. If they can’t validate (and many are unable to) the tradeline must be removed.

    One more thing, see an attorney for a free consulation and see if you are able to sue the debt consolidation company for the amount they ended up costing you. Especially if you paid for their services. Their mistake has ended up costing you thousands and they need to pay for it.

    I agree with you 100%, our system is flawed and needs fixing. Until that happens, everyone should keep a close eye on their credit.

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