Can I collect interest on a debt?

Yes, in Washington, you can collect interest on a debt. Collection Defense Law in Washington allows creditors to collect up to 12% interest per year on unpaid debts, unless the debt is for consumer goods or services, in which case the interest rate is limited to 8%. Additionally, Washington law requires that any interest rate charged must be disclosed in the written contract. It is important to note that any interest charged must be reasonable based on the circumstances of the debt. In other words, if the creditor charges a higher rate than allowable under state law or charges interest without disclosing it in the contract, then the creditor may be liable for any additional interest the debtor paid. More importantly, if a consumer feels they are unfairly charged interest by a creditor, they can dispute the amount by filing a consumer complaint with the State of Washington Attorney General or through the Department of Financial Institutions. All in all, creditors in Washington can legally collect up to 12% interest on unpaid debts, unless the debt is for consumer goods or services, in which case the interest rate is limited to 8%. It is important to note that any interest charged must be disclosed in the contract and must be reasonable, otherwise a consumer can file a complaint.

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Can I collect interest on a debt?

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