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  1. #1
    Join Date
    Jul 2008
    Location
    Nebraska
    Posts
    7

    Default Collection Agency Charged Interest Illegally - What is the Next Step?

    My question involves collection proceedings in the State of: Nebraska.

    I have received a demand letter from a collection agency and they have charged about $400 interest and it is growing day by day.

    I have a copy of validation from the original creditor and the original balance was $969.87.

    The demand letter they sent me does not specify how they arrived at the larger sum, which I understand is a violation of FDCPA and someone referred to Fields v Wilber.

    Do I need to file something about the violation? I don't wish to pay the interest if I can avoid it but I will pay the original balance.

    Also, they contacted me for the first time on June 25 but did not send written notice until July 17, which I received today. Aren't they obligated to send written notice within five days of the first phone contact?

  2. #2
    Join Date
    Jan 2008
    Location
    Toledo, OH
    Posts
    16,307

    Default Re: Collection Agency Charged Interest Illegally - What is the Next Step?

    What does your original agreement with the original creditor say about interest if the account is sent to collections?

    That will determine whether it was legal to begin with, and you can read more here about finding your state's allowable interest rate.

    If your original contract does not provide for collection of interest and your state does not allow it, contact your state's Attorney General to file a complaint.

  3. #3
    Join Date
    May 2008
    Location
    Louisville, KY
    Posts
    1,877

    Default Re: Collection Agency Charged Interest Illegally - What is the Next Step?

    Hi Missy, I was under the impression that credit card companies usually use the laws of the state in which their domociled (Deleware, for example) because the laws are more favorabe for them there. (I think this is usually in the fine print you sign when signing up for a credit card.) Is it possible to use your own state's laws in that case?

    Asking 'cause I'm confused!

    ~Christina

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