Posted on April 3, 2009 at 2:34 pm Hello, So I'm slowly but surely trying to pay off debt from my younger years.  After tracking down an account that I have that's been sold and re-sold multiple times, I finally talked to "The Law Offices of Shane."  LOL. Anyway, I told Shane I'd like to pay a debt I have with their company.  On my credit report, this debt is listed at $478.  When I asked Shane how much I owe, he said $800+, but "if I paid today, he could make is $678."  When I asked why it's more than what's listed on my credit report, he said that it's the interest that's been added over the past 2 years.  I did a little research on if charged-off accounts can still accrue interest, answers seemed to be yes, if it's a part of the original contract with the original debtor.  This account was from a checking account that was closed with overdraft fees - and the amount has never changed on my credit report? Is the Law Office of Shane pulling my leg in regards to this "interest?"  Any help or advice would be greatly appreciated!!!!

Posted on April 4, 2009 at 12:57 pm Sometimes collectors will make the debt larger to make a better profit. If the credit report says you owe $478, then this amount is most likely correct because it would've been reported by the original creditor.  The first thing I would do is send them a settlement offer which should be about 30-50% of the amount listed on the credit report, sign it, and send it by certified mail return receipt through the Post Office (make copies of everything). Most likely they paid a few pennies on the dollar for this debt, and so no matter what the agent told you, giving him $130-250, is a huge profit for them on this account.Secondly, If it were true they could charge interest, the original amount over time would havereflected that. Thirdly, I wouldn't try and work this out over the phone, because no matter what they tell you or promise you it's not enforceable in court. If you want to see if the agent is serious about settling the case, ask them to put any offer they make to you in writing. If they refuse, or say they're not authorized to do so, then you'll know the offers are not legitimate..

Posted on April 4, 2009 at 1:13 pm                                                                                                                            Thanks for the advice.  I will use it!   -K