That's An Outrageous Interest Rate!
It's one thing for a rent-to-own deal to be expensive, but the balance on Kerr's deal went a little too far.
QUESTION: Kerr did a rent-to-own deal on a musical instrument and was late, so now the $250 late fee he had was sold to a debt collector, and now they are chasing him for $1,800. He talked to them about making payment arrangements and asked for documentation, but Dave doesn’t want him to fool with that.
ANSWER: You can only accrue so much interest on a bad debt. This is 5,000% and that’s not an option; this is breaking state law. Either pay them the $250 that you owe them or tell them to jump in the lake. If they sue you, tell the judge of the outrageous interest rate they are charging and take them apart.
Tell them you’ll send a $250 cashier’s check tomorrow if they send it to you in writing that paying that amount settles the account in full. Just lean into them; but there’s not a chance that we’re doing their deal.