Is this even legal to increase the amount after the original credit card company (WAMU) have charged it off as loss? It is truly ridiculous to assume that a two year old delinquent account purchased by another CA (in the row of many) can and does simply add $100 even before verification. I don't think a company who purchases the debt would have any more right to tack on any fees. They should only have the "right" to collect the purchased amount.
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Unfortunately, yes, they can continue to add interest to the account balance after charge off. They are not supposed to add any more late fees or over-the-limit fees to the account balance after charge off. Some states have laws about how much interest they can charge, but sometimes these laws only apply to interest added to judgments.
But in most cases you could settle the account for 1/2 or sometimes even less, which strips away all that extra interest and charges. But if you're going to do that, get it in writing before you pay them anything, and only pay them with a money order. Don't give them access to your checking account, or you'll be sorry. And there are tax consequences to settling a debt if the amount forgiven is more than $600. In most cases, you are probably better off filing for bankruptcy.The world's simplest C & D Letter:
"I demand that you cease and desist from any communication with me."
Notice that I never actually mention or acknowledge the debt in my letter.
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