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Under CA law, there is no monetary cap on the service charge/late fee charged by a creditor to a business. However, the law does require that the amount charged be reasonably related to the actual damages caused by the creditor due to the customer's nonpayment. A CA court has in the past found that 18% is not excessive if the creditor can show that it is reasonable. In other words, it comes down to whether or not a court finds it reasonable. It appears that you are also concerned about the 60 days past due. That is a contractual matter and you will need to look to your contract to see what it says about when payment is considered past due. Often, a company will have 30 days or 60 days as being late. 30 days is more common.
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The example I gave was an APR of 18%.
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