Can Debt Collectors Legally Charge Interest?

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Numerous recent FDCPA lawsuits challenge the ability of debt collectors to assess interest to accounts.  These cases focus on a number of factors including whether collection letters need to disclose the accrual of interest and also interest on purchased accounts.

Most recently, a California Court held that interest could only be assessed in certain circumstances after a judgment had been entered.

In the latest episode of the Debt Collection Drill podcast, Attorneys John Rossman and Mike Poncin tackle the intricate issues involved with collection agencies assessing interest and provide an assessment of strategies to comply with the law.

Listen to the 13-minute audio clip below:

 

(If you cannot see the audio player above, please download the file directly at http://traffic.libsyn.com/thedrill/TDCD_40.mp3.

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Posted in Collection Laws and Regulations, Debt Collection, FDCPA, Featured Post .

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  • avatar Raymond says:

    The next forthcoming requirement will be the agency may have to produce receipts to the consumer if interest/fees are charged monthly and when payment is reported to the client will the client know how to post the interest and principle to the account?

    Charging interest on an already charged off account was a bad idea 40 years ago and is still a bad idea today plus a higher invitation for additional lawsuits and legal costs.

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