Legal Question in Credit and Debt Law in California

loan

I took a loan from a friend. We drew up a contract, but I was late on a few payments which moved the end of the contract by a couple of months. Now they want to charge me interest on the amount left on the loan. Can they do that? I thought you couldn't charge interest rates unless you were a financial instute unless you were in NY. What should I do?


Asked on 10/13/08, 8:40 pm

1 Answer from Attorneys
Robert F. Cohen Law Office of Robert F. Cohen

Re: loan

Unless the written terms of the loan contained provisions for interest, the answer is no. However, if they sue you for breach of agreement, they might be able to ask for interest from the date of the judgment at the legal rate of 10 percent.

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Answered on 10/13/08, 9:03 pm


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