Interest charged on charged off account

What is the rule for a collection agency (First Resolution Management Corp, Seattle) charging interest on a charged off account. They informed me it is accruing at 22% per day! The debt is invalid and has shown up on my credit report this year from the collection agency.

This is the first I've heard from First Resolution, but Gulf State Credit contacted me several years ago with the same account (Citibank). Nothing came of that after I sent them a letter citing I felt the burden of proof was theirs.

Anyway, I guess the interest question is what I am curious about.

Thanks

A creditor may not charge more than the amount permitted by law or the amount stated in the Agreement.

I don't know about Georgia, but I'm assuming it's the same. What does the Agreement between you and the alleged creditor say? If a signed Agreement cannot be found, then obviously the debt is highly suspect.

Quoting from Lorelei (http://www.wallstreetbrokers.com/negotiable.htm) "The Uniform Commercial Code, the law controlling [promissory notes], contains many complicated requirements that require expertise to comply with."

"[The Note] must be in writing and must be signed by the [debtor]. It must be the original and not a signed copy and must be in [their] possession...[The note] must contain an unconditional promise to pay."

I wouldn't pay ANYONE any money unless I knew they had the original note. If they lost the note and I found it, I could legally go to court and compel you to pay me money even if you'd already paid someone else. The presumption is that if I have the note that I must be the legal owner of the stream of payments.

How many collection agencies scrupulously follow these requirements? I'd be shocked to find even ONE that did that -- insisting upon receipt of the original, signed promissory note before they'd be willing to send collection letters... unheard of.

Shylock, The information on California code and Validity of contracts is appreciated. I have recently recieved a letter titled, "NOTICE TO FILE SUIT" from an attorney/collector here in California. RE: CIRCUIT CITY / FNANB Debt sold to : National Credit Acceptance. It was my intent to respond by first asking for Validation, and simultaneously disputing with all 3 CRAs. Now, based on what you have said, please advise; When and How should I challenge them on the "Original" contract issue? Thank you in advance, Lucky

When you dispute the debt as not valid ask for proof of the debt.

Invoices, computer printouts and other items are not 'proof' of anything, much less of debt. Only a signed, original promissory note or other signed instrument is proof of a debt.

When you use a credit card, when you sign the charge slip the slip normally says that you agree to be bound by the terms and conditions of the credit card you are using. In that case the 'proof' of the debt would be the signed charge card slip.