Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!


Posted in Credit Report
Profile Image

Question By

0 Contributions
0 People Helped
Debt in Collections, gaining interest?
I read on the federal credit website that unless it's specifically stated in the original credit agreement, that once debts are in collections, they can't gain interest. I recently started paying on a debt that had been in collections for 4 years, and had remained at a certain amount during that 4 years, however, now that I've set up a payment plan in order to start repaying the debt, the finance company informed me that I now owe a new amount, which is SIGNIFICANTLY higher than the amount I originally owed, we're talking doubled. The original debt, under the original creditor, was at 12% interest, and there's no way this new number is correct. I would dispute the issue on my credit reports, but I've already done my "Free views" of my report for this quarter. ( I look at one every 4 months)

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.


Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.