Interest charges on defaulted credit card debt?

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
2 posts
Posts: 1
Joined: Mon Oct 07, 2013 10:06 am
Location: United States

Interest charges on defaulted credit card debt?

Postby CraigA » Mon Oct 07, 2013 10:10 am

Is it legal for a credit card issuer to continue charging interest on defaulted balances? Are there any restrictions or limits on what they can charge or for how long?

Centurion Member
Centurion Member
Posts: 190
Joined: Fri Aug 02, 2013 2:35 pm
Location: Houston, TX

Postby Obi-dan » Fri Oct 11, 2013 1:15 pm

Different states have different laws but my basic understanding is this: They can charge you interest up until they charge it off and take the loss or sell the account to a collection agency. If they have an agency collecting on their behalf (they have not sold it to a collection agency) they may still be able to charge interest. There is a difference between defaulted and charged off.

Hope this helps.
Chase Sapphire Preferred
Marriott Rewards
Citi Hilton
Barclay Arrival
AMEX BCE (member since 95)
Chase Freedom
Discover It
Wells Fargo Platinum
Barclaycard (Apple)
Local Credit Union Visa (buy local!)

FICO Scores:
TU: 824 (Aug 2014)
Experian: 789 (Aug 2014)
Equifax: 807 (Aug 2014)

Return to “Finance Charges & APR Compare”

Who is online

Users browsing this forum: No registered users and 2 guests