Q: I have a default judgment entered against me in Michigan for the amount of $15,864.61. What is the interest rate?
On the filing, the judgment interest accrued thus far is $557.17 and is based on the statutory rate of 12.9% is specified from 11/18/2012 to 02/26/2013
The default judgment was entered on 03/6/2013.
My question is the following: What is my current interest rate on this judgment? It would appear that the 12.9% was only for the date specified above.
I understand that the normal rate is set by the state Interest Rates for Money Judgments (See below)
http://www.michigan.gov/treasury/0,4679,7-121-44402_44404-107013--,00.html
But the lawyer that is attempting to collect my debt is telling me that 12.9% is my current interest rate. I believe they are over charging me.
A:
See the following:
http://www.michigan.gov/treasury/0,4679,7-121-44402_44404-107013--,00.html
A:
The Michigan Dept of Treasury states that for complaints filed on or after January 1, 1987, interest on a money judgment recovered in a civil action shall be calculated from the date of filing the complaint at a rate of interest which is equal to 1% plus the average interest rate paid at auctions of 5-year United States treasury notes during the 6 months immediately preceding July 1 and January 1, as certified by the state treasurer, and compounded annually, pursuant to this section.
Pursuant to the above requirements, the State Treasurer of the State of Michigan, certified that 1.902% was the average interest rate paid at auctions of 5-year United States treasury notes during the six months immediately preceding July 1, 2017. So, effective July 1, 2017, the judgment rate of interest will be 2.902%.
You can see historical interest rates paid at auctions of 5 year note at the following link. Then, add 1% to to that.
http://www.michigan.gov/treasury/0,4679,7-121-44402_44404-107013--,00.html
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