money owed
If someone owes me money, can i legally charge them interest every two weeks, i do i send them a notorized letter saying so.
Asked on 8/08/06, 10:45 am
1 Answer from Attorneys
Roy Hoffman
Law Offices of Roy A. Hoffman
Re: money owed
You may charge intrest so long as it is not "userious." Currently, at least in California, you could probably charge interest at between 7 and 10 pecent PER ANNUM (for example, on a loan of $100.00, you could charge annual interest of $10.00, or daily intrest at approximately $0.03). Charging a "userious" interest rate can result in a number of problems ranging from being unable to legally enforce the interest to being prosecuted for usury. Banks and other financial institutions can charge more because they have been exempted from most usury laws.
Answered on 8/08/06, 3:12 pm
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