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I bought a mobile home through a private deal, financed by the owner. The last payment of a thousand dollars was an interest payment.

Due to financial problems, I could not give them the whole thousand dollars, but I gave them what I could, and they started charging me 10% interest on the balance.

My question is that since the last payment of a thousand dollars was interest, can they charge interest on that?

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    Yes, its called compound interest. Unless there is a specific law local to you forbidding or limiting it. – quid Jul 9 '17 at 23:09
  • +1 yes, you can be charged for any outstanding debt with a creditor, regardless of how it was generated, even interest balance, that's why even for "payoff" balance, they are guaranteed until the next interest cycle, usually about 10 days, give or take how the terms are setup, they will give a date up until which that payoff balance will be all you pay – GµårÐïåñ Jul 10 '17 at 0:04
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    @GµårÐïåñ, quid Answers to questions belong in the answer box, not in the comments. – Ben Miller Jul 10 '17 at 5:38
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    Questions regarding the legality of something should include the country you are in (and probably the state as well if you are in the US) as laws can vary greatly between jurisdictions. – D Stanley Jul 10 '17 at 13:46
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    @BenMiller no apologies needed my friend, just letting you know why I took the approach I did, I am sorry if you took offense, the damn text medium leaves a lot to be desired in conveying intent :( I wasn't answering so much as affirming what quid had already said, hence the +1 to show this is affirmation of the comment preceding mine, nothing more. We're all good, no worries ;) The site's design leaves a lot to be desired and the rotating regimes means it will always remain inconsistent, SIGH, we do the best we can. I will own that I should have probably noted quid in my comment to make clear – GµårÐïåñ Jul 10 '17 at 19:16
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Yes it most cases it is legal. Plus depending on how you look at it, the last payment of 1000 can be principal paid and interest was paid in initial installments.

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