Legal Question in Credit and Debt Law in Tennessee

Capital One CC Charge Off

I had 2 credit cards with Capital One that charged off approximately 6 months ago. Collection Agencies are now trying to collect the debt. However, the debt continues to accrue at 29% interest and past due/over-the-limit fees each month. This is still happening even though the debt has charged off. Is this legal? I thought that charges stopped accruing after the charge off. Also, Capital One is updating the date of the monthly charges as the date of last activity, even though I haven't made a payment in almost 12 months.


Asked on 9/06/06, 12:30 pm

1 Answer from Attorneys
LAURA TEK LAW OFFICE OF LAURA TEK

Re: Capital One CC Charge Off

Yes, it is legal. A creditor may "charge-off' a debt but that only means they are not actively collecting it themselves. They have "assigned" or "sold" the account to a collection agency. You are still liable for the debt. Read that fine print on the credit card application that you signed long ago. They can do this. It's in there. They will continue to pursue you. You may need to file bankruptcy to clear everything off your credit report and start anew.

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Answered on 9/06/06, 1:11 pm


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