[Resipza]

I apologize if this question had been posted previously. Does anyone know whether banks can continue to charge interest on loans that have been "charged off?"

[Mr. Knowitall]

A charge-off is beneficial to the bank for bookkeeping and tax purposes. That shouldn't affect their ability to charge interest on the debt as provided in their contract with the debtor.

[Resipza]

What interest, if any, should a bank have in accepting a settlement offer on a charge-off? also, Does a debtor have any leverage in negotiating a settlement that would be lower than the charged-off amount?

Thx.

[Mr. Knowitall]

They can charge whatever interest their contract permits.

You can try to negotiate a lower settlement or payoff. They don't have to accept.

[Resipza]

You are the best! Thx.