Legal Question in Credit and Debt Law in Wisconsin

Interest on credit cards when they go to collections

My credit card balance was sold to a collection agency. I have paid a lump sum of 1/3 of the balance to the attorney handling the debt. I have offered a monthly payment of $130 but he states that that won't cover the interest and wants me to pay $200 a month to elimate the interest ''as a courtisy'' Once a balance from a credit card is sold, doesn't interest stop? I am willing to pay the balance off, but am only able to afford $130 a month. I received no notice that my balance was sold until I received a letter from the attorney threatening garnishment and judgement.


Asked on 6/21/04, 7:04 pm

1 Answer from Attorneys
JAY Nixon nixon law offices

Re: Interest on credit cards when they go to collections

I have never heard of any law which requires interest to cease upon sale of an account, although I have never researched the issue. If you are unable to make your payments as required, you should look into other options such as consulting a debtor's attorney. Since there is no legal requirement that the creditor accept your offer once you have defaulted, the creditor has the right to demand full payment and sue you for it. You, on the other hand, have rights under the bankruptcy code in the event that the creditor is being unrealistic given your limited ability to pay. Good luck.

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Answered on 6/21/04, 7:35 pm


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