Legal Question in Credit and Debt Law in California
interest charges
chapter 13 never confirmed. Can a collection agency collect interest on an account that was forwarded to them 5 years after chapter 13,no collection effort made by client, not even a returned phone call. principal assigned to collection agency has been paid, can a collection agency collect on interest from client and interest from accrued from their office?
1 Answer from Attorneys
Re: interest charges
I admit I am a bit confused by your question, but in general yes, a collection agency can collect interest.
It is frustrating when a collector seems to purposely let a judgment sit and collect interest for years when if they tried to collect earlier, it would have been a much smaller amount. However, it is not an uncommon practice.
While interest can be added, however, if the debt is from a bank then attorneys fees should NOT be added to the amount owed.
-- Amy Kleinpeter
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