Can collection agencies charge interest? Debt collectors and creditors must follow federal and state laws when adding or charging interest on debts. Interest on Debts (when no judgment exists) Section 808(1) prohibits debt collectors from collecting any amount unless the amount is expressly authorized by the agreement creating the debt or is permitted by law.
Pay off your debt If you are in debt and pay only the minimum payments on high interest debt you should already understand that you are spinning your wheels and are going to take forever to pay off your balances. The minimum payments are designed to keep you in debt. Your creditors are sharp, they