Legal Question in Credit and Debt Law in Michigan

I have a dental bill that went unpaid for a bit because of job and money issues. During this period, interest was charged on the principle-which is fine because it states that this is the practice clearly on the bill. Now, I have since paid the principle (the amount originally charged for services rendered), but have not paid the interest that accrued on the primary balance. I received a new bill after having paid the principle and additional interest has been capitalized or compounded on the interest accrual. I am thinking that this is not a legal practice, but am struggling to find an accurate answer. Could you let me know if this is acceptable billing practice?

Thanks in advance for your time.


Asked on 7/10/10, 8:08 am

1 Answer from Attorneys
Stuart Collis Collis, Griffor & Hendra, PC

It depends. Michigan's usury laws are very complicated and have many exceptions. However, in general, nobody can charge more than 5% per annum (not compounded) or 7% per annum (not compounded) if there is a contract permitting it. http://www.wolverinelaw.com

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Answered on 7/10/10, 11:18 am


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