Legal Question in Credit and Debt Law in California

Legal Interest rate for services rendered

I have provided counseling services for a patient and had her sign a lien against her settlement. My contract calls for 18% compound interest on past due balances. Since I am charging this interest on services rendered, not money loaned, am I bound by Usury law to limit interest to 10%? (i.e., does my claim fall under CVC Sec 1916.1-5?) Is compounding the interest legal? If I am limited to 10% can I just retroactively reduce the contract amount and calculate the interest on my bill at 10%?


Asked on 6/24/07, 7:59 pm

1 Answer from Attorneys
Jonathan Stein Law Offices of Jonathan G. Stein

Re: Legal Interest rate for services rendered

Have you had an attorney review your lien to make sure it is valid and complies with the law and your professional obligations? You should make sure you do that ASAP.

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Answered on 6/24/07, 11:17 pm


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