Legal Question in Business Law in California

Can interest be charged on a purchase without being stated on the invoice.


Asked on 6/05/12, 1:35 pm

1 Answer from Attorneys
Anthony Roach Law Office of Anthony A. Roach

It depends on the original contract between the parties. The current trend is not to classify payment on a past due account as interest, which would make it subject to usury law, but rather as a late fee. At least one court opinion discusses this, and a dissent criticized this, pointing out the penalties were not to be upheld in law.

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Answered on 6/05/12, 3:27 pm


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