Can a creditor collect interest on an unpaid claim?
A creditor can collect interest on a debt if there is an agreement beforehand, whether it is a credit application, a sales or purchase contract. If there is no agreement about interest, Idaho law allows interest at a rate of 12% on money due by express contract, money after the same becomes due, money lent, money received to the use of another and retained beyond a reasonable time without the owner’s consent, express or implied, money due on the settlement of mutual accounts from the date the balance is ascertained and money due on open accounts after three (3) months from the date of the last item. If a creditor receives a court judgment, Idaho courts allow post judgment interest. Court costs are also recoverable and added to the amount of the final judgment.
