Legal Question in Credit and Debt Law in California
Allowable interest in Civil Suits
What is the allowable interest that can be charged on a debt owed when filing a civil suit?
I have contract of repayment that was signed indicating that interst would be charged, yet the amount was not stated. Does that work in my favor or against me.
Thank you
2 Answers from Attorneys
Re: Allowable interest in Civil Suits
you will probably be awarded what is called the legal rate which is 10% simple interest.
Re: Allowable interest in Civil Suits
In California, you can only get interest if the contract provides for it. Your contract did, which is good. Another portion of the civil code states that if a contract is silent on any of the terms, the statutory rates will apply.
The statutory rate in California is 10%, and that would be your interest rate if nothing else was mentioned.
You also asked if that works for or against you. Well, it works FOR you in that you do get interest, but it works AGAINST you if you wanted to charge higher interest rates than 10%.
Best of luck, Robert Miller - Attorney at Law
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