How much “interest” can a collection agency in washington state charge on a medical bill?
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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 14 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!
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