Legal Question in Credit and Debt Law in Missouri

Your friend is partially coorect. If the debt is paid voluntarily, you may in most cses not pay interst after the debt wa ssold. But, if they sue to collect, the courts allow for pre and post judgment interest. The legislture sets up criteria to determine th percentages. Nine percent seems to be a pretty standard rate. But, since iut wa scolecot that "bought" the account receivable, you know that they paid much less than the preicipal balance for it. So, you and your attorney will probalyl be able to settle the case for less than they are now demanding.

But, if the conractyou had withteh medcial provider calls for a specific interst rate (normally 18%) they may be able to get that as both pre and post judgment interest. What the colector willliley lose is the ability to get their collection costs nad attrney fees added to a judgment against you. Therefore, most legitiamate colections agencies abandon that part of the claim when they buy a medical account debt.

If the alleged debt is more than 1,500, it is probalby worht you time and money to have the debt (and all related documents) examined by your locla attorney. If you have estblsihed legal counsel formteh apst,. they problaby won't charge you much to do this. If not, many attorneys offer a free or low cost intials consultation. The hunded bucks or two that you spend may save you thousands.

Good luck