Can a credit card companycharge interest on a canceled card?

My card was stolen about a year ago. I called the credit card company and told them about it and I also canceled the card to end the account. They sent a card to me but I never activated the card yet they still put interest and late fees on the card. Now I get a letter from the debt collector saying I owe $1143 but when I canceled the card I only had $500 to pay. The debt collectors gave me 30 days to pay this off.

Asked on July 24, 2010 under Bankruptcy Law, Michigan


M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

If the credit card had a balance on it when you cancelled it that was attributable to your spending then you had an obligation to pay it off.  Just because you never activated the card that they sent you for the account does not mean that you can consider it over and done with.  You also need to have checked the charges on the account after the card was stolen and see if any of then were made with that particular card. You had to dispute the charges.  Call them up and write to them.  Ask them for an accounting of all charges made after the date of cancellation. That may be why the card balance is so high.  And then sit down and try and figure out how to pay for the balance you owed and make them a deal on paying it off.  It will only get worse if you ignore it.  Good luck.

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