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A High Court judge has ruled that First Citizens Bank is not entitled to charge more than five per cent interest after judgment in a loan dispute, even though the original loan agreement stated a higher rate.

Justice Frank Seepersad made the ruling on July 9, in a case where the bank had asked the court to apply the loan’s contractual interest rate of 10.25 per cent after the judgment was entered. The court instead decided to apply the five per cent statutory rate outlined in the Remedies of Creditors Act.

The case involved a customer who had borrowed money from First Citizens Bank but later defaulted. The bank then took legal action, and on June 4, the court entered judgment against the borrower for $157,986.47 in debt, interest, and costs. The only question left was the rate of interest to apply from the date of judgment until the full amount is paid.