Legal Question in Business Law in Massachusetts
Finance Charges
If you have a written contract that states you may charge finance charges and collection cost is a contract is defaulted and a client defaults on a portion of the contract can you charge these fees in mass and what is the max you can charge? Are there any laws on finance charges?
1 Answer from Attorneys
Re: Finance Charges
Assuming the charges are stated on the contract, e.g. interest shall be charged at 1.5% per month or something similar, then you can charge 1.5% on the unpaid portion of the agreement. Charges of interest or service charges in excess of 20% must be registered in advance with the MA Attorney General's office. As to cost of collection, e.g. legal fees you can seek reimbursement for the costs arising therefrom.
If the breach caused other consquential damages, then it will depend on the language of the agreement.
I would suggest if you are being sued or are suing you contact an attorney straight away.
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