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Can a servicer add three years of interest to the balance of a charged off loan?

Posted on: 23rd Apr, 2011 06:27 am
A loan secured with my property was charged off. Years later the loan was sold to a servicer. The servicer added years of interest to the charged off balance causing a $12,000 balance to become $35,000.

Since the original lender no longer charged the account interest once it was off the books, is it legal for the servicer to charge the interest and fees?
Hi ewilliams,

The servicer can add late fees and other charges to your account. Thus, you will be liable for paying off a higher amount to the servicer.
Posted on: 24th Apr, 2011 10:45 pm
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