Do Credit Card Charge Offs Acrue Interest?

Author: Guest
Posted: Wed Jan 28, 2004 3:11 pm
Post subject: Can charge-offs continue to accrue interest?

I have a Citibank card that was CO'ed 7/2003. Balance at that time was $10,500. It's now $11,000 with a past due amt of $2773 (which keeps going up monthly). Can they do that to a CO'ed account?

Equifax score simulator says if I paid off this account (which would be a settlement) my score would go from 571 (currently) to somewhere between 631-671. Should I settle this now? I'm looking to apply for a mortgage spring 2005. Thanks.

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Author: NightStar
Posted: Wed Jan 28, 2004 5:15 pm
Post subject: Do Credit Card Charge Offs Acrue Interest?

I would say yea, get an early start, but try to negotiate for deletion of the account from your credit report.

I know they can charge collection fees after having charged off, and that might be a percentage hitting the balance. But not sure -

You might look up the Fair Billing Act on this, I have not looked over this document myself - but it might give you a better idea.

Check out www.ftc.gov site map to locate this one.

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Author: NightStar
Posted: Wed Jan 28, 2004 6:18 pm
Post subject: Do Credit Card Charge Offs Acrue Interest?

Here is the direct link for the Fair Credit Billing Act

http://www.ftc.gov/os/comments/dncpapercomments/04/lsap7.pdf

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