Re: Can a passed on debt still get charges and interest

Big Brian wrote:

If a creditor passes my debt to a debt collection agency , can that agency
continue to add charegs and interest if you havent signed an agreement
with that agency?

Yes if the original contract allows for it or the creditor has court
judgement. A creditor is free to contract out debt collecting and is
probably free to sell or 'lease' the debt to debt collectors. When the
collection is contracted out, any extra interest collected (less commission
if any) goes to the creditor. Many modern terms of trade allow the
creditor to add on fees for collection such that assuming collection is
successful the creditor is not left out of pocket.

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