Q: Can a debt collector add interest to a debt, and if so can they continue to do it after the original debt was paid?
Im in CA we had Riverside public utilities, no contract signed.
when we moved they sent us to collections for about $340.
The debt collector account sez we owe like $470.
We just moved back to riverside and to turn the power back on with Riverside Public Utilities we had to pay the past due, the $340.
So we paid that, but the debt collection company still wants the $130 difference, even tho the original debt is now paid.
Can they do this? if so, Can they Continue to charge interest on that interest?
A: Interest can accrue over time on a debt, even if the debt is sold to a collection agency. But if you settled the debt with the current debt holder and the agency does not own the debt but was hired to try to collect it for the PUC, then you can inform the collector to cease their debt collections efforts and provide them proof of debt payment. More details are necessary to provide a professional analysis of your issue. The best first step is an Initial Consultation with an Attorney. You can read more about me, my credentials, awards, honors, testimonials, and media appearances/ publications on my law practice website. I practice law in CA, NY, MA, and DC in the following areas of law: Business & Contracts, Criminal Defense, Divorce & Child Custody, and Education Law. This answer does not constitute legal advice; make any predictions, guarantees, or warranties; or create any Attorney-Client relationship.
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