Asked in Car Accidents, Civil Litigation and Small Claims for Arkansas

Q: Does interest "per annum" mean it's everyday?

The plaintiffs attorney is adding 10% interest every single day, causing my debt to double in just a couple years. Is this legal? Can he do that? He says that he legally can do this in AR

1 Lawyer Answer
Tim Akpinar
Tim Akpinar
  • Personal Injury Lawyer
  • Little Neck, NY

A: An Arkansas attorney could advise best, but your question remains open for two weeks. In general usage, the term "per annum" means yearly or annually. But that doesn't reconcile with the 10% daily interest you also mention in the description.

It sounds like you are trying to do this on your own. If that's the case, please consider a consult with an Arkansas attorney. If you enter into an unjust settlement agreement, it could be difficult to extricate yourself from it later on down the road. There are a number of different ways to compute interest, and it sounds like you are dealing with someone who is more sophisticated than yourself, and I say that respectfully as a note of caution, in drafting financial terms in an agreement. Good luck

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