Once a credit card debt is turned over to a collection agency, can they continue to collect interest on the debt?

Asked on June 7, 2012 under General Practice, Missouri

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

If the credit card agreement allowed interest to continue to be charged after default (after you failed to pay)--which all the credit card agreements with which I am familiar allow--then yes, the collection agency can keep charging interest as per the agreement. The agreement is a contract, and you are bound by the terms you agreed to in signing it.


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