Are collection companies entitled to the default rate of interest on a credit card.

Asked about 1 year ago - Ocala, FL

A collection company has filed a motion for summary judgement against me. The original bank refused to set up a repayment plan, because I could not afford what they wanted as a minimum. I lost my job when a major company in my area went under. The bank sold the debt to a collection agency who is now suing me for about $3,000.00 more then original debt. Does a collection company have the same rights as the original lender? Do I have any rights if I tried to work out a solution, but they refused?

Attorney answers (2)

  1. William Joseph Kopp Jr.

    Contributor Level 12

    Answered . The other attny is right. But remember that this collection company if different than the first company and really may make a deal with you. It is worth a call to their lawyer to find out and if you have other debts as a result of a job loss, it is worth a free consult with a BK lawyer.

  2. Jeffrey Scott Hyslip

    Pro

    Contributor Level 13

    1

    Lawyer agrees

    Answered . Yes - as assignee of the debt they can get all of the benefits of the contract when the agency buys it. No, you do not have any rights because the original creditor refused to come to an amicable agreement.

    I am an attorney licensed to practice law in Ohio and some Federal Courts throughout the United States. I am not... more

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