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Does the interest and finance charge stop each month after a credit card charge off?

In: Credit and Debit Cards, Debt Collection, Credit [Edit categories]

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No - I am a collector and service primarily unsecured credit card debt. Per the cardholder agreement that was signed with the credit card company, the account holder is often liable for a LARGER interest rate after an account goes into collections. This may not always be the case, but I rarely see credit card collections that have interest rates lower than 18%. Finance charges are not often applicable when the tradeline has been closed and charged off into collections.

First answer by Misterlippy. Last edit by Misterlippy. Contributor trust: 67 [recommend contributor ]. Question popularity: 31 [recommend question].

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