Debt collector and Interest

[nic.mar.nyk]

What is the name of your state? Colorado

I was recently sued due to a hospital bill. The company that was hired to sued me stated that I can call their Collections department to set up an arrangement. I was only able to pay the arrangement for a few months and since then, my paycheck has been garnished which is understandable. However, can the debt collector continue to charge me interest if they sued me for one specific amount? At the time I was sued, they provided me with one amount that included accrued interest. They also included "Plus Court Costs, plus reasonable attorney fees if permitted by contract or statute, as decided by the court." Im not sure if that last line means they can charge me interest.

 

[Zigner]

Yes, interest continues to accrue on the unpaid balance.

 

[PayrollHRGuy]

Colorado law allows the accrual of interest on unpaid judgments even in cases where there was no interest rate originally agreed upon. I believe the rate is 8%.

 

[Taxing Matters]

Colorado law provides that, where interest is not stated, the creditor is entitled to both pre-judgment and post-judgment interest at 8% compounded annually. Colo. Rev. Stat. § 5-12-102.