Can a credit card company continue to charge interest after a judgement has been filed?
Question Details:
I went to court a couple years ago and had a judgement placed against me for an unpaid credit card. At that time, they were granted the judgement for the original balance plus late fees and interest and it was around $25,000. I just received a letter from an attorney office stating my balance is now over $40,000. I thought that once the judgement was placed, they could no longer charge me interest and I was responsible for the original judgement amount. Am I wrong?
Collections and Debt Law Answers
The credit card company cannot charge you interest post judgment but the judgment will itself accrue interest at the legal rate (8% per annum in North Carolina).
You should negotiate to see if the credit card company will accept a smaller amount in full satisfaction. Often they will.
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