Court decision is to pay the full amount and 2 % interest per month untill setelled in full. Is this lawfully?

Question

Court decision is to pay the full amount and 2 % interest per month untill setelled in full. Is this lawfully?

Answer 1

2% per month is equivalent to a 24% APR. In most states, private individuals are barred from charging this amount under State Usery laws. Banks and financial companies may of course charge well above this. Pay Day loans charge interest rates as high as almost 500% interest.

      A court judgment in all fifty states will be for a fixed amount of money and interest at the rate set by the state. These rates tend to be very low. I know of no jurisdiction that allows judgments to accure

24% per year interest.

      Notwithstanding, the Court could approve a private settlement agreement between a recognized financial institution and a private individual to a repayment of a fixed amount plus 2% interest per month.

      In this manner an individual might avoid a judgement on record if the settlement agreement is satisfied.

      The above is lawful.

Answer 2

Well, in most contracts, the person loaning out the money can ask for the full amount when the person signing the contract shows that he is not going to pay his debt.  I work in finance, and if you are 60 days late, I have every right to ask for the full amount b/c you signed my contract.  

FYI!!  READ your contracts.. don't let people read them to you!

Answer 3

Yep.

The 2% is post judgment interest.

So, pay the judgment and the interest will stop.

Answer 4

First of all, every state has a limit on the interest charged on judgments.  You can find this information at the following link

http://www.bcsalliance.com/y_debt_statel...

Now you mention the court wants it paid in full and interest per month.  Are you sure of this, if you pay the amount in full then what it means is the court is charging you 2% interest on the whole balance. (example debt is $2000 plus interest of $40 then you would pay $2040 in total).

BUT, there are states (Alaska) for one, which do provide for interest amounts to be paid at the interest rate stipulated on the original contract.  Now if is this is for a credit card, we all know they charge 24% and even higher. So once again it depends upon what state you live in.

Hope this answers your question.

LEGAL DISCLAIMER:  The advice contained herein is for informational purposes only.  It is not to be construed as Legal Counsel nor Legal Advice.

Answer 5

Of course it is.  You owed a debt and the courts say you must pay the debt you owe.  24%/year is high, but similar to some credit cards.  You could consider a personal loan at a lower interest rate to save some $$.

Unless there is some reason you should no owe the original amount why would it not be lawful ?

Answer 6

Judges generally know something about the law, so I would guess the answer is yes.

It appears that the judge thinks it's a lawful debt and that you have the capacity to repay it.  You have just been trying to get out of it.  Now, it appears from your question that you're still not paying up.  Your stalling has taken you from an open collection amount to an unsatisfied judgment.  This makes your credit worse.  Now you're going to stall.  The creditors will go back to the judge and say that you're not paying.  Judges don't like to be ignored, so he will issue an order allowing them to seize your assets and wages.  When are you going to learn that you need to pay this bill?

Answer 7

Yep.