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theodani

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Can a collections agency charge interest on a removed debt?
Through some serious mishandling at a vocational school I attended (they have since been sued by the state government for similar infractions), I had a balance with the school for approximately $3400. Since I could not pay it right away, they sent it to collections. After some negotiations, filing a complaint with the state board, and the overall government lawsuit filed against the school, that amount has been removed from collections and I no longer have to pay it.

HOWEVER, the collections agency is still demanding I pay them over $1000 in accrued interest! Is this possible? This was NOT a credit card, or a loan, just an erroneous balance that the school held against me for "extra attendance" and then removed. Am I obligated to pay this interest?

(Sorry about the capitalized emphasis; I keep running into credit card-related answers whenever I do a search! haha)

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Top Contributor
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If you are not required to pay the debt, then you are not required to pay interest on the debt. Contact a consumer law attorney that handles FDCPA cases and sue this outfit. I highly recommend the law firm of Kimmel & Silverman if they practice in your state.

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