Expert: Apex Credit Services, LLC - 1/3/2008

Question
My Bank of America credit card was charged off on my credit card at $13,500. Now a collector is attempting to collect $20,000 about a year and a half after the charge off. This means they are still adding on the 30 percent interest rate and late fees. Is it not true that under federal law that after the credit company charges off the account it cannot charge the debtor late fees and the credit card interest rate every month. Rather, the credit company can only sue for the state statutory interest rate after the charge off. Also what is the federal law?

Thanks

Answer
Michael:

    There is no such federal law which precludes the addition of interest after charge-off.  Charge-off is simply an account term and does not estopp interest from continuing to accrue under the terms of your agreement.

    As for a legal limit to what a credit card can charge in terms of interest, that is the legal principle of usuary.  It is your obligation to plead that as an equitable defense in the event you are sued.  It can act to offset the amount claimed.

          Apex Credit Services, LLC