Expert: Apex Credit Services, LLC - 5/19/2008

Question
I have 2 credit card account's that were "charged off as bad debt" and "account closed by credit grantor" according to my credit report. This occurred because of unexpectedly losing my job. I understand, from reading here, that this debt is still owed by me. I have been contacted by a Collection Agency, wanting to confirm one of these debts, and would like to arrange an amicable repayment agreement. Are they allowed to charge me interest on the repayment of this debt? And if so, is there a minimum or maximum amount of interest they are allowed to charge? I can not afford to pay the amount in full and will need to make payments. And do they ever accept just the amount of what was owed before the interest went to about 30% because of late or short payments? Thanks, Jim

Answer
Jim:

   Unfortunately, yes, the interest and fees would contiune to accrue as you're making payments unless they agree to stop them from accruing.  See if it is possible to ensure that happens before entering into a repayment Agreement.

   Yes, creditors do sometimes agree to accept an amount equal to the principle.

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