Consumers around the country have been receiving bills on old debt, which may amount to thousands of dollars in interest payments for already cash-strapped borrowers.
Capital One, one of the nation's six largest credit card companies, has been billing for interest payments on accounts that were charged-off as long as 10 years ago in some instances.
The lender says it is now required to send out these statements each billing cycle due to recent regulations passed by the Federal Reserve, The Los Angeles Times reports. However, some consumers may be incorrectly charged with these fees because of a credit report error for a past purchase they never made.
As a result, consumers who receive these notifications may want to check with lenders to verify these claims, as a quick credit fix could provide immediate relief. With the help of a credit repair lawyer, these individuals could gain insight into legal actions they can take to remove these claims.
By doing so, consumers can help boost their credit scores so they are not charged more for credit cards, insurance and mortgage loans as a result.