Legal Question in Credit and Debt Law in Michigan

interest rate after judgement

I have had a judgment entered against me for a loan. The court tells me the interest rate is now at 4.295% annum. The debt collector says that since they have a written instrument, they will lower the rate from the original 24% to 13% monthly. Which one prevails?

--name removed--Courtney


Asked on 8/11/04, 4:56 pm

1 Answer from Attorneys
Gregory J. Roth Gregory J. Roth, PLLC

Re: interest rate after judgement

The interest rate the court cites is the default interest rate on judgments. A judgment creditor may charge a higher interest rate, i.e. the 13%, on its judgment if the judgment is based on a written instrument. The creditor may not charge its original interest rate, i.e. the 24%, on the judgment. Based on your scenario, 13% is the proper interest rate. -Greg (248)305-5840 www.lawgreg.com

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Answered on 8/11/04, 8:03 pm


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