Q: Can a collection firm charge a 6% interest on a court order amount
A:
All states have statutes specifying the "legal rate" of interest, and routinely, when an order to pay/judgment is entered by a court, interest accrues on the adjudicated amount at the legal rate.
So, yes, the court has the power to impose interest until paid. I recommend that you do a search for the "legal rate of interest" in Wisconsin.
A: Most likely yes, bc that is the legal rate of interest in Kentucky on judgments.
A:
Maybe, but probably not. You are apparently in Wisconsin, and you refer to “a court order amount.”
If by this you mean a judgment, then the rate is set by Wisconsin statutes. The judgment interest rate applicable to civil actions is 1% plus the prime interest rate in effect on January 1 and July 1 of each year. if the judgment is entered on or before June 30, the applicable interest rate is the rate in effect on January one of that year. If the judgment is entered after June 30, the applicable rate of interest is the rate in effect on July 1 of that year.
Looking back, the only period for which the interest rate would have been 6% was for a judgment entered between July 1 and December 31, 2018.
If there is no judgment, the contract rate would likely apply.
If there is no contract rate set, the legal rate of interest is 5%.
I publish a newsletter each month, and twice a year I review the then current interest rates for both Wisconsin judgments and the IRS. Contact me if you would like a free subscription.
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