How long is it legal to charge interest on a defaulted account?

View your credit file based on any of the UK credit reference agencies, or all three at once
LifeLock is the only Identity Theft Prevention Solution backed by a one-million dollar guarantee!Click here to get a 10% discount.

LifeLock Identity Theft Prevention - Save 10%

I had an unsecured loan that went into default back in 2002. I was not able to pay this debt before now and contacted XXX to find out about settleing this debt and they told me it was almost 6 Grand. The org loan was for 1002.98 This has to be illegal on some level.... Does anyone have any advise or links to referance. No rude answers please. Thank you :)

How long is it legal to charge interest on a defaulted account?

Interest can continue to be added to the debt without having an expiration period, except for when the debt is finally paid. I think a solution for your situation might eventually be a 'negotiated' settlement - an offer on your end to settle it for less than it is now. This is the same as applies to income tax debt when the government allows people to pay a lesser amount and finish their obligation, because there is no way they can possibly pay the entire amount. That's not to say this will work in your case, but it's not known to anyone at Yahoo Answers the entire circumstances of your debt, or to whom the money is owed, etc, but generally speaking interest can continue and if it reaches a point where you just can't possibly pay that much because your life and career circumstances are not sufficient to do it, then trying to work out a sensible compromise with the creditor might be an alternative.

How long is it legal to charge interest on a defaulted account?

Topic