CHARLESTON, W.Va.- West Virginia’s Legislature has voted to reduce the interest rate on court judgments.
The bill, approved 25-8 by the Senate, would set the rate at 2 percent above an annually set Federal Reserve rate, down from 3 percent.
Senate Judiciary Committee Chairman Charles Trump, a Morgan County Republican, says the rates are intended to reflect current economic conditions, disputing criticism that it creates incentives for wrongdoers to avoid paying.
Sen. Mike Romano, a Clarksburg Democrat who opposed the change, says West Virginia’s rate was already in the middle of what states have set and most of these lawsuits involve businesses.
It would lower the range of possible rates to a minimum of 4 percent and maximum of 9 percent – both 2 percent lower.
The House unanimously approved it before.