Change to Courts Act 1981 Interest from 1 January 2017

On 19th December 2016, Frances Fitzgerald, Minister for Justice and Equality signed into the law ‘Courts Act 1981 (Interest on Judgment Debts) Order 2016’ (S.I. 624 of 2016) (“the Order”).

This Order reduces the rate of interest payable on judgment debts, under section 26 of the Debtors (Ireland) Act 1940 from 8% to 2%.

The Order came into operation on 1st January 2017.

The effect of the change in the rate of interest should be taken into account when calculating the interest due to creditors on foot of judgment debts.

For further information, please contact Sion Williams.