bigshooter Posted February 16, 2005 Report Share Posted February 16, 2005 Judgement against us 05/2003 for $151.00 I get a bill from the CA today 2/16/05 for $226.40Nebraska law says: Judgment: 1% above bond equivalent yield as published by U.S. Treasury - allowed interest.Are they charging the right amount of interest? Link to comment Share on other sites More sharing options...
willingtocope Posted February 17, 2005 Report Share Posted February 17, 2005 Wow...compound interest was never my strong suit. Looks a little high, but if its compounded monthly, who knows... Link to comment Share on other sites More sharing options...
johnransom Posted February 17, 2005 Report Share Posted February 17, 2005 Compounding interest on a liability is actually called capitalization, and on loans it's illegal under most circumstances AFAIK. I don't know about judgments.However, in order to get to $226 from $151 over that period, even with capitalization the rate would have to be about 24%. At a more likely 6% average rate, the bill should come to about $167. Without capitalization it would be about $1 less. Link to comment Share on other sites More sharing options...
codename_fortyseven Posted February 17, 2005 Report Share Posted February 17, 2005 Compound interest IS my strong suit, and I say no friggin way is the interest rate less than 35%. Do they say which Treasury bond? It matters, because the 6 MO treasury is different than the 20 year.Just think about it, even at 20%, in the first year that is only 30 bucks. For the second year, about 36 bucks. You'd only be at $210 there. Link to comment Share on other sites More sharing options...
Recovering Attorney Posted February 17, 2005 Report Share Posted February 17, 2005 Sounds like you should DV them, then sue the bee-tards when they can't prove it. Link to comment Share on other sites More sharing options...
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