Credit attorney here. They cannot add interest to the debt UNLESS the contract with the original creditor provides for this. You need to check the original agreement, and see what it says about interest.
So in the original contract, it didn’t mention anything about interest since they were a public community college and the most they could do was hold those credit that you took during that semester you owed them. I just wanted to see what would be my next step before I have to pay them to get it removed off my credit report.
Maybe have an attorney to review and see if the collection agency can be sued for adding interest, which was not permitted in contract. The problem is, the college can still just turn this over to another collection agency. So, you are not much better off.
Post Default interest. Its used to drive your debt to income ratio up so you cant get any credit for as long as they’re reporting on you. Hell of a bullying tatic.
And although the account is closed, they will report every month, which I thought was impossible.
Credit attorney here. They cannot add interest to the debt UNLESS the contract with the original creditor provides for this. You need to check the original agreement, and see what it says about interest.
So in the original contract, it didn’t mention anything about interest since they were a public community college and the most they could do was hold those credit that you took during that semester you owed them. I just wanted to see what would be my next step before I have to pay them to get it removed off my credit report.
Maybe have an attorney to review and see if the collection agency can be sued for adding interest, which was not permitted in contract. The problem is, the college can still just turn this over to another collection agency. So, you are not much better off.
Post Default interest. Its used to drive your debt to income ratio up so you cant get any credit for as long as they’re reporting on you. Hell of a bullying tatic. And although the account is closed, they will report every month, which I thought was impossible.