What is the maximum interest rate that can legally be charged post-judgment for a credit card debt?
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What is the maximum interest rate that can legally be charged post-judgment for a credit card debt?
My wife was recently tracked down by a law firm collecting on a judgment (credit card debt) filed against her years ago. While we both would like to pay off her debt, 19.9% interest has been charged on this since the date of judgment, and so $3000 has ballooned to almost $20,000. Looking around online, I feel that this may be illegal, but am no expert. What is the maximum interest rate that can legally be charged post-judgment in my state?
Asked on June 12, 2012 under Bankruptcy Law, Oklahoma
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Under the laws of all states in this country there are statutes that limit the rate of interest that an unpaid judgment accrues ranging from 5% per annum to 10% per annum such as in California.
From what you have written, the 19.9% interest on an unpaid judgment seems at first blush way too high per your state's statute on the subject. I suggest that you review the civil code as to your state regarding allowable interest on a judgment. You might consider consulting with an attorney that practices in the area of consumer debt law to assist you in negotiating down what is owed on the judgment and making a monthly payment installment.
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