Legal Question in Credit and Debt Law in Michigan

Credit card collection

Approximately 5 years ago I was unable to continue paying on my credit card. They credit card company charged to account off, and I'm guessing that a collection agency purchased it. The collection agency then turned it over to an attorney. The attorneys office told me that the collection agency is charging me 18% on the balance until it is paid in full. I have been paying 75.00 mth on this 2000.00, which they state will take me approx six years to pay off. Can they legally charge me interest since I did not sign a contract with them and agree to thier terms and conditions?


Asked on 6/23/04, 1:58 pm

1 Answer from Attorneys
Regina Mullen Legal Data Services, PLC

Re: Credit card collection

It depends upon the terms of the contract that you DID sign to use the credit card. When you began using it, you agreed to the terms of the contract. If you don't have those terms, they have to send you a copy of what you signed so that you can choose whether or not to dispute it. However, at $75/month you are going to end up paying MUCh more than they amount that you charged. You might want to negotiate with them for a faster payoff at a lower rate of interest.

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Answered on 6/23/04, 8:40 pm


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