Legal Question in Business Law in Massachusetts

can you charge a finance charge on over due bill

In order to charge a finance charge (interest) on an overdue bill, there must be a

special agreement or the equivalent with the debtor. The agreement must be created

before the debt was created. If the debtor is a consumer, there must be compliance

with truth in lending laws. The interest charged may not violate usury laws. In order to charge a finance charge (interest) on an overdue bill, there must be a

special agreement or the equivalent with the debtor. The agreement must be created

before the debt was created. If the debtor is a consumer, there must be compliance

with truth in lending laws. The interest charged may not violate usury laws.