spring2020
Registered User
- Messages
- 15
Ask for a statement.
But interest is charged on loans.
And if you let it run, the interest will accumulate.
Brendan
I'm not an expert on this but it sounds strange that the bank would continue to charge interest after it has offloaded the loan to the collection agency. You should ask for a statement and then get independent advice.
As far as I know the way it works is that the bank sells the debt (including accumulated interest) to the collector at a discount. Once that has happened the bank doesn't own the debt anymore and therefore cannot charge any further interest on it. It could be that the debt collection agency is chancing its arm by adding "interest" in its own right. You should take advice on this (especially on how it affects your credit record) but if the debt is unsecured ignoring the collection agency might be the best solution. Initially the agency will try to intimidate you. After a while they will offer you a deal involving partial debt write-off. If you ignore that they will eventually just go away.The debt collection agency advised the interest came from the bank so they were adding it on. I think that's what I will do. Admittedly it's my fault for defaulting but as it was a student loan, I also understood it to be interest free!
Not always. Different banks have different approaches.As far as I know the way it works is that the bank sells the debt
It was finally getting below 1000 and next thing it jumped back up by 2 grand a few months ago
How did you query it ? If by phone write to them and ask for written details. how did you know you were down to less than 1k ? Again if by phone ask for written statement. I suspect they are chancing their arm. Do not engage with them by phone ever, always politely tell them you will correspond by mail only if they ring.I queried what was going on and was advised this was the interest from the debt with the bank even though it with a collection agency. The bank apparently notified them that I now owe an additonal +2k in debt.
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