Legal Question in Credit and Debt Law in Massachusetts

default interests on credit card

I defaulted on a credit card and the bank (Citibank) charged me a default interest rate of 29.74% for 6 months before sending the balance to a collection agency. I now owe Citibank $21,556 (principal balance was $18,090). Citibank would not negotiate for a settlement despite me repaying $16,039 within 18 months of the collection notice. Now, I am facing a summon for the remaining balance. Can the courts rule on default interests?


Asked on 4/08/08, 1:58 pm

2 Answers from Attorneys
JOHN TATOIAN LAW OFFICE OF JOHN A. TATOIAN ESQ.*Licensed Only in Massachusetts

Re: default interests on credit card

To answer your question plainly and simply, the courts can rule on any dispute which is properly before them.;) I believe your best course of action is to either have an attorney contact and negotiate a settlement with the credit card company, or properly respond to any pleadings which have been filed. Please feel free to contact my office for a free initial consult based on the facts of your specific situation.

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Answered on 4/16/08, 12:39 am
Christopher Vaughn-Martel Charles River Law Partners, LLC

Re: default interests on credit card

Citibank has no duty to negotiate or settle the amount owed with you. You are responsible for the full amount owed, unless other arrangements are agreeable to both parties.

Yes, the court can enforce the debt currently owed, including interest. You may have certain defenses and even counterclaims depending on whether Citibank or the collection agency acted unlawfully, but for that you should speak with an attorney.

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Answered on 4/08/08, 3:21 pm


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