Is it legal to charge 30% interest on a garnishment?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Is it legal to charge 30% interest on a garnishment?
My wages have been garnished for over a year by a credit card company. They are charging me 30% interest along with the amount due at the time the account was closed. Is the additional 30% interest legal?
Asked on December 21, 2011 under Bankruptcy Law, Utah
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
In most states in this country, the legal rate of intrerest that can accrue on a judgment while the principal is being paid down is 10% per annum. From what you have written, the 30% seems excessive and could be an unfair business practice by the judgment creditor.
I suggest that you look online under your state's civil code as to the interest rate on judgments. You should get an answer. If the 30% is excessive, you might want to consult with a debt collections attorney about this seemingly excessive interest rate and a possible unfair business practice claim against the judgment creditor.
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.