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I live in Michigan, if my credit card debt collectors from calling my state my rights are still the same? And they can still legally my incure debt interest as soon as they moved to the collections?

3 Thoughts on Can a debt collector credit card still incure interest on the amount you owe?
  1. Reply
    January 3, 2013 at 8:23 pm

    YES. Just because the account is in collection does not change the terms of the card agreement which applies interest to the outstanding balance. It does not matter whether the collection agent is in or out of state. In state or out of state, your obligations under the terms of the contract remain the SAME. It never ceases to amaze me how many people run up debt and then think they can get out of paying through some loophole… You should have never let get so bad that it went to collection in the first place… If anything, they upped the interest rate to the maximum allowed under the contract, the “default” rate, when you missed the FIRST payment. You may have a rate of something like 14%, but when you missed that first minimum payment, they probably upped the rate to the “default” which can be as high as 34%.

  2. Reply
    January 3, 2013 at 8:52 pm

    When you applied for the card, you agreed to be bound by the laws of the state THEY specified in the agreement. If they SOLD the account to a collection agency, that agency CAN accrue interest AND add collection fees. If they moved it to their collections department, the same is true.

    Note: YOU incur interest.

  3. Reply
    January 3, 2013 at 9:05 pm

    yes, yes and yes.

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