If I already paid my judgement in full, can the C.A. report the interest as 'charge-off' on my Cr Report after the judge denied?

Asked over 1 year ago - North Hollywood, CA

After I went to court and the judge did not grant the interest to the CA, they continued to charge me 101% (approx) interest and sent me a letter stating they took the interest as a "loss" and will be reporting it on my Credit Report as a "charge-off". The judge told me I didn't have to pay the interest and it was not granted to the collection agency. I live in CA and I believe if allowed, I can only be charged 10% interest once payment for the judgement was ordered. I paid it before my start date, therefore, no interest accrued on the judgement.
Now the same Collection Agency said they had to take the interest as a loss and will report it on my CR as a charge off. Is that legal after I already paid the judgement and the judge did not find them entitled to the interest?

Attorney answers (3)

  1. Zein E Obagi Jr

    Contributor Level 5

    2

    Lawyers agree

    Answered . It sounds like the collection agency violated the Fair Debt Collection Practices Act and you may have a claim against it. Many attorneys specialize in this type of claim and you ough5 to consult one. You may be entitled to money if the collection agency threatened to take illegal action or did in fact take such action.

    The above is not legal advice. Contact an attorney for legal advice about your case.
  2. Richard Scott Lysle

    Contributor Level 17

    1

    Lawyer agrees

    Answered . It appears that the collection agency may be violating the Fair Credit Reporting Act. Before you can take action against the debt collector, you must properly dispute the reporting to each of the credit reporting agencies.

    Also, a demand for any amount that is more than the amount actually owing, may be a violation of the Fair Debt Collection Practices Act. Was this a consumer debt?

  3. Scott Richard Kaufman

    Contributor Level 20

    Answered . I concur and am sorry this is happening to you.

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