Can a debt continue to accrue interest after it has been sent to a collection agency?
Yes, a collection agency legally can add interest and fees on top of your balance owed. Although, most of this is just the collection agency trying to make extra money. When your debt gets over six months old, the original creditor gives up on collecting the debt and sells it to a collection agency for pennies on the dollar. Whatever the collection agencies collect over 10 percent of the original balance is pure profit for them. It is usually possible to offer a collection agency a lump sum payment that is much less than the original balance owed. Or better yet, if you don’t pay them at all and can avoid being sued until the statute of limitations in your state has past, you’re home free!
