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#1629373 - 11/16/11 08:45 PM interest accrual on charged off checking accounts
cbailey Offline
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Joined: Jan 2004
Posts: 67
May we charge an interst accrual on charged off checking accounts turned over for collection? Of course this would need to be disclosed in the account agreement.

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#1629386 - 11/16/11 08:59 PM Re: interest accrual on charged off checking accounts cbailey
rlcarey Offline
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rlcarey
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Galveston, TX
It would be a State law issue.
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#1629409 - 11/16/11 09:30 PM Re: interest accrual on charged off checking accounts rlcarey
cbailey Offline
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Joined: Jan 2004
Posts: 67
Any recommendations on the state law section it would be under?

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#1629440 - 11/16/11 09:57 PM Re: interest accrual on charged off checking accounts cbailey
Elwood P. Dowd Offline
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Usury would be a guess, but state statutes are not organized in any consistent fashion.
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#1629446 - 11/16/11 10:04 PM Re: interest accrual on charged off checking accounts Elwood P. Dowd
Ted Dreyer Offline
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Quote:
state statutes are not organized in any consistent fashion.


Truer words were never spoken!

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#1629513 - 11/17/11 01:59 PM Re: interest accrual on charged off checking accounts Ted Dreyer
Andy_Z Offline
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In many cases collection costs are allowed, but there may be issues with interest on the NSF fees that you may have in that collection balance. If your state does allow it, read the allowance carefully.

FWIW I'd start with my state banking association.
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