Confusion about Georgia maximum Interest Rate on Debt Collections

[GradX]

What is the name of your state? Georgia


Taken from http://proagency.tripod.com/skp-ga-cl.html


There is no license, fee or bond required to operate a Debt Collection Agency. The allowed interest rates are as follows: Legal 7% - Judgment 12% - Commercial Accounts 18%. Statute of limitations are 4 (four) years on an Open Account, 6 (six) years on a Written Contract, 7 (seven) years on a Domestic Judgment and, 5 (five) years on a Foreign Judgment. Bad check laws, which is a Civil Penalty, are as follows: After 10 (ten) day written demand double damages up to $500 and service charge at $20 or 5%, whichever is greater


So does this mean the maximum amount I can be charged on a credit card debt that is in collection is 18% (cause I'm guessing it's a commercial account)?

 

[Ladynred]

You guessed wrong. A commercial account would be a business debt, not a personal debt.

And no, the interest rate they can charge is in the credit card agreement and most states don't have anything to stop them from using that rate even if it is higher than anything else in the statutes.