Legal Question in Consumer Law in Texas

Texas maximum legal interest rate on past due amount of note

I need to know the maximum legal interest rate that can be charged on the past due amount of a note in the State of Texas. The note was entered into in 2003 and became past due in 2004 and will be collected in 2005.

The note states that the maximum legal rate of interest will be charged on the past due amount and payments were stopped on the note 12 months ago and demand for full payment was issued 10 months ago.


Asked on 5/13/05, 4:15 am

1 Answer from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Texas maximum legal interest rate on past due amount of note

It depends on what the payee is. Banks and equivalent can charge up to about 24%. Payday loans can charge well over 100%. Individuals dealing with individuals can charge up to 12% and individuals dealing with businesses on essentially a business loan can charge up to 18%.

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Answered on 5/13/05, 5:54 am


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