Can a collection agency charge more intersest then allowed. A debt of 3500 was what was charge off. In AZ only 10% allowed to be charged. Collection agency is trying to get 5300.00 which is Arrow. Can I do anything about this?
But how long has it been? The 10% would be per year, compounded. If it's been several years, it adds up quickly.
Well, 10% a year compounded yearly for three years is $4659, so if it's compounded monthly it could probably be $5300. If I get a chance I'll go and do a compound monthly table, but I bet it's close.
So you think its another 600 in compound charges. Its states clear that only 10% now, no where does it state 10% a year. Where did you get those facts
Normally when an interest rate is quoted, it's an ANNUAL rate. Check your state's laws and I'm sure that somewhere it will say that it's annual interest (or per annum, or APR).
Where did you get the information that it's 10% in Arizona? That should be the part of the statute that specifies it.
This site won't let me post the site. STATE: ARIZONA Interest Rate * Legal: 10% * Judgment: 10 % or contractual STATUTE OF LIMITATIONS (IN YEARS) * Open Account: 3 * Domestic Written Contract: 6 * Foreign Written Contract: 4 * Domestic Judgment: 5 (additional 5 upon request indefinitely) * Foreign Judgment: 4 BAD CHECK LAWS (CIVIL PENALTY) Twice the amount of check, costs of suit, reasonable attorney fees.
Can the contratual rate in AZ be more than 10% or does it have to be less ... in other words, that "or contractual" should have been "or contractual, whichever is more" (or "whichever is less"). I know in Washington state you can get more if you are the creditor. Which is kind of a problem for CC holders who have been ratejacked.
Doing a Google search, I found a site with the answer, but it's a pay site. There was enough displayed, however, to show 10% per annum, which means per year. And just about any time interest is expressed this way, it's per year. I really don't think the interest is excessive.
