Legal Question in Credit and Debt Law in California

paying interest on debtors mistake

My mother is currently paying a debt that was being electronically debited from her account. About one year ago, the company ceased taking her payment. She never received any statements or documentation the whole time so she never knew her balance, or her interest on the account because it belonged to my late father and she just kept paying it after his death. Just recently they started debiting her account again and they added all the interest of the past twelve months to her balance even though it was their computer error that caused her monthly payment stoppage to begin with. They never contacted her in all that time to find out why her payments were not being received. They never sent anything to her at all. They just stopped taking the money and then a whole year later, started up again but with a bunch of interest tacked on. Seems to me that her balance should be what it was twelve months ago minus the three payments that she made in the interim. Is it legal what they are trying to do?


Asked on 12/11/05, 10:23 pm

1 Answer from Attorneys
H.M. Torrey The Law Offices of H.M. Torrey

Re: paying interest on debtors mistake

It sounds like the creditor is acting "typical". We would need more background details on this matter to properly assist or guide you from here. For a free consultation, contact us directly.

Read more
Answered on 12/12/05, 5:23 am


Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in California