Can interest on a credit card debt be continued until the balance is paid off,even after the card has been canceled?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Can interest on a credit card debt be continued until the balance is paid off,even after the card has been canceled?
I am being sued by a credit card company for a past debt. The limit on the card has been paid however the company is suing me for $800 of interest that was added after the card had been canceled. The firm states that I will lose this case because this legal?
Asked on March 30, 2011 under Bankruptcy Law, Arkansas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Even after the card has been cancelled, the account will keep on accruing interest at the same rate--or possibly a higher rate even, if the card agreement had (as many do) a term or condition increasing the interest rate in the event of default. So even when you may no longer use a card or borrow new money from it, whatever balance is on the account will continue to accrue interest. While you can (and should) double check their calculations to make sure you're not being overcharged--and you should also ask the credit card company to break down for you exactly how that amount is arrived at--in principal, there is no reason why an account holder would not be responsible for additional interest on an outstanding balance when the card was canceled, unfortunately.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.