If I have an old default judgement against me on credit card, is it legal for the the collection agency to charge me 29.99% interest on the judgement?

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If I have an old default judgement against me on credit card, is it legal for the the collection agency to charge me 29.99% interest on the judgement?

Asked on June 4, 2012 under Bankruptcy Law, Colorado

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Under the laws of all states in this country, once a judgment is entered against a person, the judgment bears interest at the legal rate per statute under the laws of the state where the judgment was entered on the principal amount. Each state's rate of interest varies, usually capping out at 10% per annum such as in California.

From what you have written, the 29.99% interest on the judgment against you is not allowed under your state's laws regarding accrued interest on a judgment.


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