How much “interest” can a collection agency in washington state charge on a medical bill?

Get Legal Help Today

 Secured with SHA-256 Encryption

How much “interest” can a collection agency in washington state charge on a medical bill?

I have a long past due medical bill that was turned over to collections quite some time ago. I have recently started making very minimum payments. The balance starte at just under $100.00 and last months “interest fee” was under $8. This was it went up to $9.98. Thats about 10% of the balance owed before i started making payments. Is there a legal cap on how much a collection agency can charge monthly?

Asked on June 11, 2009 under Insurance Law, Washington

Answers:

L.M., Member, California Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

A collection agency cannot charge you higher interest than was originally agreed to.  For example, if, early on when you were getting billed by the health care provider, they charged a 2% interest rate after 90 days, that is the most that can be charge.  You can also try to negotiate a lower over all amount to pay on this.  If you can only pay $50, tell them and they might just take it!


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption