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Collections Law/credit card debt


QUESTION: If you have gone to court because of a credit card debt and reached a monthly payment agreement on the amount owed can they still add interest and fees every month to the total?  If they can the debt will never be paid because the interest and fees are almost the same as the our monthly payment. Also, can you make an offer on the debt after there has been an agreement to make payments?

ANSWER: Yes, unfortunately they can and will continue to charge interest.  Most states limit the amount of interest that can be charged on a judgment so if you let me know where you live, I will research this for you.

The creditor is not as likely to settle after they obtain a judgment but it certainly would not hurt to ask.  If they were to sell the debt, they would only get pennies on the dollar so I would offer them a 50% settlement.  If they accept this settlement, you would have to stand ready to pay the amount agreed upon in a lump sum. If they agree to a settlement, get the commitment in writing and insist on a PAID IN FULL receipt once the debt is paid. At this point, I would trust no one. I have heard of many cases where a settlement was paid and the remaining balance would end up being sold and collected on by a collection agency.

Please let me know where you live and I can get you additional information on the interest and fees allowable in your state.  Remember to handle all correspondence concerning this account in writing to cut down on "confusion" in the future.  I wish you the best with this.

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QUESTION: Thanks for your quick response. I live in Massachusetts. My husband receives disability and the judgement was against him. Does that make a difference?

Answer is a good source that states the interest rate is 12% simple interest. I can not find a ruling on credit card debt.  I know that in some stares the interest rates in the credit card contract are the ones used. If I were you, I would contact the Massachusetts Attorney General. They should be able to help you with this. There contact information is I wish I had more concrete information for you.

I do know that your husbands Government Disability check can not be garnished.  I hope this helps!

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Ray A Miller


I am qualified to answer questions on the following subjects: FDCPA, FCRA and HIPAA as well as medical collections, general collections and collection agency related issues. I trained these subjects at a nationwide collection agency and customer service call center and audited around 150 representatives for compliance to the laws. I have been in the Collections Industry for over 30 years. I feel that everyone deserves to be treated fairly and with compassion and that is the way I trained collectors. Even though I worked for a Collection Agency, I get great satisfaction in helping those who have been mistreated or in need of help with these confusing issues.


I was the Compliance Administrator with a nationwide collection agency and customer service call center-I have trained hundreds of collectors on the above referenced topics. I have been in the medical collections industry for over twenty years and research these topics on a daily basis.

ACA International

Some college ACA Certified Collection Specialist

Past/Present Clients
I am retired due to medical conditions and spend a good deal of time keeping current on collection issues.

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