Can I collect interest on a debt?

Yes, you can collect interest on a debt in New York. Collection Defense Law dictates that, if you are owed money, you can charge interest in the form of a finance charge when an agreement has been made between creditor and debtor. This agreement has to be in writing and must include the applicable interest rate. Interest rate limits are subject to the terms of the contract and the law, as outlined in the Uniform Commercial Code. In certain circumstances, creditors may be able to charge a higher rate of interest, according to the contract, than what is allowed by the law. Generally, if the creditor has a New York state license, the interest rate will be limited to the maximum amount allowed by the law. When assessing interest on a debt, it is important to note that the law generally limits the amount of interest that can be charged. If the amount charged is more than what is legally allowed, the debtor may be able to challenge the amount. The best way to ensure that interest is calculated and collected correctly is to enter into a written agreement with the debtor that outlines the applicable interest rate. This agreement should be kept on file in case of any disputes.

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Can I collect interest on a debt?

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