Legal Question in Credit and Debt Law in Massachusetts

Re: debt collection

Credit card lending is the single most profitable form of lending available in the industry. If the average drug dealer had a choice between selling crack and Visa, he would choose Visa because the demand is higher and the profit margin is better.

Interest rates are established by what appear in the original contract for the credit card, subject to monthly increases (modification) while you continue to keep the card open. All sums owed are due and payable and interest is charged on any balance remaining. Default occurs when a borrower fails to make the required minimum monthly payment. Generally, major credit card companies have a special provision for "default interest rate" which is at or near some of the maximums allowed by law in most states. Generally, if the credit card is at 18-22 %, the default interest rate (by the contract) is higher. Some of the more aggressive credit lenders also charge a monthly "late payment fee" on top of the default interest rate, so that making a $20 or $50 payment can trigger a "late payment fee" of $35. People trying to make small payments generally find themselves charged more in "late fees" than they are making in payments every month, thus their balance continues to climb faster than if they did nothing at all.

The terms of your credit card will vary with the lender (ie a Visa thru Capital One is different than a Visa thru a local bank), so ou will have to find the original contract that you signed when you opened the account to become fully familiar with the terms, rates and fees.

Re: debt collection

Without knowing the orginal card balance and the date incurred, it is impossible for me to ascertain if the actual APR is usurious under Massachusetts law.