can someone charge interest on a debt owed of less that $300?
Date: Mon, 06/08/2009 - 09:23
Ok So I owed a business a little over $1000.000 they agreed to take 4 checks post dated. The first 3 went through fine. which brought the balance down to $300. My account went negative so before the check hit I cancelled it and contacted them saying I would bring them the money. Due to the account being negative, I told them I would have to bring little bits at a time until my bonus check came in and I would pay them in full. They refused to accept small payments and began harrassing me at my job until I was written up for "personal phone calls" I sent them $20 then $60 and they accepted it but said they were going to begin assessing interest. Now they are trying to sue me for $650 some dollars saying that all that is interest and they are still refusing payments. Can they just decide to charge interest and decide how much and actually make me pay that when I never signed anything concerning interest?
Yup...if it is in the contract or agreement they signed with you
Yup...if it is in the contract or agreement they signed with you, you can be held liable to costs including interest, late fees, bounced check fees and all court and legal costs.
Was this a loan, or was it simply an "open account" for goods &
Was this a loan, or was it simply an "open account" for goods & services you purchased from the company?
All states are different, but the following is true for IL:
1) In the absence of an agreement, they can charge 5% per year on outstanding balance from time to time unpaid;
2) With a signed agreement, they can charge at most 9% per year.
3) To charge more than 9% in interest, they'd have to be licensed as a consumer finance company.
