Collection Agencies and Interest--What Gives?

[phall0106]

I’ve looked for this answer online, and even talked to a collection agency, but can’t find it online, and getting a straight answer from the collection agency is like pulling teeth. I’m hoping that there’s some wise doper out there who can help.

Let’s say…hypothetically, of course…that a credit card balance gets turned over to a collection agency, and the collection agency contact the debtor for collections. Does the balance of the debt still collect interest when it’s with the collection agency, or can the collection agency collect only for the balance they are to collect?

I’ve also been told that, in the state of Pennsylvania (and some other states) that although collection agencies can contact a debtor to collect a debt, and they can sue for the balance, that they cannot get a wage attachement (garnish a paycheck) for credit card debt. Other than consulting an attorney (which would cost money), is there anywhere I can find out if this is accurate? (An online legal search engine or something?)

I’m honestly not trying to get out of debt any unethical way, just trying (and not very successfully) to keep my head above water enough to keep from drowning. It’s utterly depressing and I am about at the end of what I can deal with.

[Bongmaster]

@phall0106

I’ve looked for this answer online, and even talked to a collection agency, but can’t find it online, and getting a straight answer from the collection agency is like pulling teeth. I’m hoping that there’s some wise doper out there who can help.

Let’s say…hypothetically, of course…that a credit card balance gets turned over to a collection agency, and the collection agency contact the debtor for collections. Does the balance of the debt still collect interest when it’s with the collection agency, or can the collection agency collect only for the balance they are to collect?

AS I understand it they won’t necessarily charge interest but you’ll see some kind of service fee applied to your account.

I’ve also been told that, in the state of Pennsylvania (and some other states) that although collection agencies can contact a debtor to collect a debt, and they can sue for the balance, that they cannot get a wage attachement (garnish a paycheck) for credit card debt. Other than consulting an attorney (which would cost money), is there anywhere I can find out if this is accurate? (An online legal search engine or something?)

For PA this is correct, exceptions for things like student loans do exist though. You can find info here and lots of other places:

http://www.ftc.gov/bcp/conline/pubs/credit/fdc.htm

I’m honestly not trying to get out of debt any unethical way, just trying (and not very successfully) to keep my head above water enough to keep from drowning. It’s utterly depressing and I am about at the end of what I can deal with.

A small tip for you. All three credit bureaus maintain a way to dispute listings on your report. Select a couple of negative listings and dispute them. The listing company has a limited time to prove you owe the debt via documentation of some kind. If they do not provide proof in the alloted time the record will be removed from your credit report. I had great success with this technique right before I bought my house. Good luck!