Unifund Ccr Partners v. Carol Harrell

Summary

The Court held that a creditor’s agreement to an interest rate exceeding the statutory rate, followed by its decision to stop charging contractual interest after charge-off, extinguished both statutory and contractual interest rights that could be assigned to a debt purchaser. Because Unifund had no legal right to demand interest, Harrell plausibly stated claims under the FDCPA by alleging that Unifund falsely represented the amount and character of the debt and sought amounts not authorized by agreement or law. The Court affirmed reversal of the dismissal and remanded for reinstatement of the counterclaim. Venters, J., dissenting, would have held that charge-off ended contractual-interest accrual but did not eliminate the creditor’s separate right to prejudgment interest on the liquidated debt.