[laytosha]

Is is possible to be charged interest for a dr.bill? I was sued for a bill and I settled for monthly payments 3 years ago. The company that sued me was bought out by another company and the new company is charging me a 10 % interest rate. Which was not in the original documentation or was not explained to me. Now the bill has doubled. What can I do?

[Justice Matters]

If the settlement agreement you reached three years ago is in writing then you should review it to see what, if anything, it says with respect to interest. This agreement will take precedence over the original contract and the statement of claim.

If you do not have a written agreement but the settlement was presented to a judge then the court should have a record of the terms.

If no written agreement exists, and you are certain the doctor's bill did not provide for interest, then it is possible that the interest came into effect once the lawsuit was filed. Most civil court systems automatically provide for pre- and post-judgment interest at a specific rate regardless of the nature of the claim. With that being said 10% interest seems rather high for a court rate of interest.

If you are still in doubt then ask the creditor to explain where the 10% interest came from and to provide proof or an explanation for same. If the company can't legitimately support it then it isn't entitled to collect it.

[laytosha]

Thank you!