I recently read on consumerinfo.com that the interest rate allowed on judgements is 8% in Illinois. And yet on the statement I received today from the collection agency (a law firm) that state they are charging us 9% interest. This is on a student loan. Does anyone know if this is a violation? Could the law be different for student loans? Where could I find this information out. The law firm is impossible to deal with. Will not update my credit report showing I am making payments every month and are reporting that I owe $1500 more than I actually do. Any suggestions? Any help would be greatly appreciated.
The interest rate on a judgment is different from the interest rate on a loan. The judgment interest rate is set by statute and applies from the date judgment is entered. The interest rate on a loan is determined by your agreement with the lender. But think of it this way, if you default on your student loan and get sued, you'll end up saving a point on the interest. Pretty cool.
why don't you rehab the loan? 12 on time payments and all derog history is wiped clean... Also, if they're not updating the bureau report, I believe they're also subject to the fcra.... You could perhaps dispute with the lawyer (in writing) the balance etc and ask they correct. They're supposed to correct it. again, most lawyers don't have to follow a lot of rules, but I think they do have to follow the fcra. If I were you though, I'd try to rehab the loan, consolidate it with William D Ford Direct loans if you can. the current interest rate is 5.99 with a .08 interest reduction if you make the first 12 mos on time. Meaning: in 1 year you could have clean credit from this and have 2/3 the interest rate...
