Legal Question in Civil Rights Law in Utah

Collection debt

Can a collection agencey charge you interest when a judgement has been entered against you. They took me to court in dec of 2003,and i owed $6427. I have been paying $100 a month to them. They deceided to take me back to court in April of this year. I stii owe them $5632 after paying $2500 in 27 months. They are not charging me interest on the principle just on add interest and attorany fees. The principle is paid off now, but they keep charging me interest. Why are they taking me back to court. Finally the add interest started out at $2500, and now after 25 months is $3500. By the time 2015 comes i could owe $10,000 on it. I would be real happy if you can give me any information on this problem. Thank You


Asked on 3/14/06, 9:43 pm

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: Collection debt

You can be charged interest on the principle amount at the rate that was in the original contract or at a minimum the statutory rate - which is low. Ask for an accounting of how the money you paid has been applied and check their figures. If you have paid the correct amount you should be able to show them their error, or you can return to court.

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Answered on 3/15/06, 10:14 am


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