Can Debt Collectors Legally Charge Interest? ("The Debt Collection Drill")
Numerous recent Fair Debt Collection Practices Act (FDCPA) lawsuits challenge the ability of debt collectors to assess interest to accounts. These cases focus on a number of factors, including whether collection letters need to disclose the accrual of interest and also interest on purchased accounts. Most recently, a California court held that interest could only be assessed in certain circumstances after a judgment had been entered.
In this episode of The Debt Collection Drill, attorneys John Rossman and Mike Poncin tackle the intricate issues involved with collection agencies assessing interest and provide an assessment of strategies to comply with the law.