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Interest on Judgement


Jeaniec58
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Hi, I have a question, need some advice. You guys have been a great help so far, I have really learned a lot just reading. This may have been addressed at some point in the past, but I haven't found it if it has.

My husband has a judgement with Great Seneca from 3/2004. The original amount was 1,628.00. Well, Wolpoff and Abramsom is the collection agency that is trying to collect. They attached his bank account a couple of weeks ago, and on the garnishment from the courts, it showed over $1,900. interest. The total debt is now $4,189.00 I am going to go to the courhouse and check the paperwork and find out what the rate of interest was to be. The state of Virginia doesn't have a set rate, so I have no idea what it would be. However, by checking a calculator online for judgement interest, this is WAY too much interest. ONe of the calculators I looked at only went to 25% and was ony $1,645.

My question is this: If I research this and find that they were only to charge 9 or 10%, what is the next step? We are trying to settle this debt, and the lower we can get it the better. Any suggestions or information would be extremely helpful. Thanks in advance.

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Definately check the court papers. But I believe most states allow compounding interest. So, it will be a lot more than simple interest. Plus it's been 4 years, so it adds up.

After you get all of the information, you can try doing a settlement offer. It's worth a shot, but with a garnishment order in place, they may not be willing to negotiate.

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Hi, I have a question, need some advice. You guys have been a great help so far, I have really learned a lot just reading. This may have been addressed at some point in the past, but I haven't found it if it has.

My husband has a judgement with Great Seneca from 3/2004. The original amount was 1,628.00. Well, Wolpoff and Abramsom is the collection agency that is trying to collect. They attached his bank account a couple of weeks ago, and on the garnishment from the courts, it showed over $1,900. interest. The total debt is now $4,189.00 I am going to go to the courhouse and check the paperwork and find out what the rate of interest was to be. The state of Virginia doesn't have a set rate, so I have no idea what it would be. However, by checking a calculator online for judgement interest, this is WAY too much interest. ONe of the calculators I looked at only went to 25% and was ony $1,645.

My question is this: If I research this and find that they were only to charge 9 or 10%, what is the next step? We are trying to settle this debt, and the lower we can get it the better. Any suggestions or information would be extremely helpful. Thanks in advance.

Pursuant to Va. Code Ann. § 6.1-330.54:

§ 6.1-330.54. Judgment rate of interest

The judgment rate of interest shall be an annual rate of six percent, except that a money judgment entered in an action arising from a contract shall carry interest at the rate lawfully charged on such contract, or at six percent annually, whichever is higher. If the contract or other instrument does not fix an interest rate, the court shall apply the judgment rate of six percent to calculate prejudgment interest pursuant to § 8.01-382 and to calculate post-judgment interest. The rate of interest for a judgment shall be the judgment rate of interest in effect at the time of entry of the judgment and shall not be affected by any subsequent changes to the rate of interest stated in this section.

What I'm afraid of in your case is that they did or were allowed to apply the default interest rate of the OC (Great Seneca is a JDB) who under VA law can charge interest up to 36%.

If Great Seneca did not have a signed agreement for the credit card, then Va. Code Ann. § 6.1-330.53 kicks in which says:

§ 6.1-330.53. Legal rate of interest; when legal rate implied

The legal rate of interest shall be an annual rate of six percent. Except as provided in subsection (B) of § 8.3A-112 and § 6.1-330.54, the legal rate of interest shall be implied where there is an obligation to pay interest and no express contract to pay interest at a specified rate.

If I were you, I'd go to the court house and get a copy of the judgment order if you don't already have it. See what the interest rate is. If more than 6%, I'd file a motion with the court to lower the interest rate to 6%. I'm not saying this will work, but nothing ventured, nothing gained.

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