Can I collect interest on a debt?
In Florida, you can collect interest on a debt, but there are restrictions and rules you must follow. Under Florida Collection Defense Law, creditors have the right to seek interest on the amount owed by the debtor. However, the interest cannot exceed the legal maximum rate set forth by the state, which is currently 18% per year. If you are seeking interest on a debt, you must also make sure it is included in the written contract signed by the debtor. The contract must specify the amount of interest you are seeking as well as the circumstances under which you plan to collect it. Additionally, the debtor must be given adequate notice of the interest that will be charged before the debt is incurred. This means that you must let the debtor know in writing that interest will be charged if the debt is not paid back in full and on time. It is important to remember that interest collection must apply equally to all debtors, without discrimination. All collection actions must also comply with the federal Fair Debt Collection Practices Act. This law prohibits any harassing or abusive behavior when contacting the debtor about the debt. Lastly, if the debt is delinquent, then a judgment can be obtained from the court. This allows the creditor to collect unpaid interest, court costs, attorney fees, and other costs related to the collection of the debt.
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