Legal Question in Credit and Debt Law in California

Notification of Interest Charges

Is it lawful for a collection agency to sell-off your debt to another collection agency who then starts charging interest without notification? I have an account that was assigned to collections a few years back and that collection agency would not set up a payment plan with me. Without my knowledge, the collection agency holding my debt sold my debt to another collection agency. The new collection agency started charging interest 30days after receiving my account and did not notify me. I have recently been in contact with the collection agency that now holds my debt and I asked them why I was not notified. They said that I was notified once by mail but that the mail was returned to them unforwardable. I asked them why the mail could not be sent to me when I had filed a change of address with the US Post Office and my credit report shows all of my past addresses including my current address but they wouldn't give me an explanation. Now I owe a large sum of money and they really won't work with me on reaching some sort of middle ground and I am wondering if everything they have done is lawful. Thanks for your time.


Asked on 3/31/04, 7:09 pm

1 Answer from Attorneys
Larry Rothman Larry Rothman & Associates

Re: Notification of Interest Charges

How old is the debt and what was the debt for. We need to review your documentation in order to assist you and see if there was any violation of the Fair Debt Collection Act or if there is a way to avoid the debt - i.e. the statute of limitations. Please contact our office at 714 363 0220 for consultation and review of your documents.

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Answered on 3/31/04, 9:20 pm


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