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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 116732
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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Our customers are paying late. Our Terms of Service say that

Customer Question

Our customers are paying late. Our Terms of Service say that we can charge interest on late payments up to 18% per annum or the maximum amount permitted by law, whichever is less." In California, is 18% per annum permitted by law or is the legally permitted
amount lower? If lower, what is it? Thanks.
Submitted: 1 year ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
As it is a commercial contract the parties are allowed to contract as they deem fit and it is exempt from the usury laws. If your terms of service agreed upon by the customer provide for 18% per year interest, then that is a binding contract and it is legally enforceable.

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