Can high interest be charged on collection account?

[skylow1]

I have an account from CAVC in Colorado that is being collected by a law firm in Oklahoma. My original amount owed was $6670.74. I began paying on it on 04/21/2004. When I recently checked my balance it was still $6220.06. I have paid a total of $4375.00 on this account and only $450 has been applied to principal. Is there anything I can do about that. I thought when original account was closed all I would need to pay was the balance owed that appeared on my credit report. What can I do about this, original agreement was made in Delaware, I now live in California.

 

[seniorjudge]

What does your written agreement with the creditor say in answer to your question?

 

[skylow1]

The original contract was written off by MBNA, when it was purchased by CAVC which has Scott Lowrey Law Firm as it's collector there was no contract just a phone call and a letter with the amount owed. We agreed to pay that amount. In the meantime, I have discovered that this law firm has apparently gotten a lot of negative reports and has been sued and been reported to State Attorney general for their practices. I have written them a letter informing them I was not going to make any more payments until they could show me in writing that we have a contract that we agreed to pay interest. I also called them, and the supervisor hung up on me after I told her we would not be making any more payments until we receive requested information and not to take any more funds from the account. She basically told me that all of our payments were applied to money owed told me to get a lawyer and hung up on me. I have proof that money was not applied to money owed. My bank is saying that I have to close my account to keep them from taking any more money out. Can they legally take more money out of my account if I have told them not to (mailed off letter this morning as follow up to phone conversation to not withdraw any more funds)? Should I wait for a response from the Law Firm before taking any further action (i.e. reporting them to Bar Association, Attorney General's Office and BBB)? Should I close out my account? Thank you for your help.