Once a credit card debt is turned over to a collection agency, can they continue to collect interest on the debt?
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Once a credit card debt is turned over to a collection agency, can they continue to collect interest on the debt?
Asked on June 7, 2012 under General Practice, Missouri
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If the credit card agreement allowed interest to continue to be charged after default (after you failed to pay)--which all the credit card agreements with which I am familiar allow--then yes, the collection agency can keep charging interest as per the agreement. The agreement is a contract, and you are bound by the terms you agreed to in signing it.
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