Interest charges on defaulted credit card debt?

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Joined: Mon Oct 07, 2013 10:06 am
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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?

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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.
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