Kirk Adams : Hi - my name is XXXXX XXXXX I'm a Family Law litigation attorney. Thanks for your question.
Kirk Adams : Under California Civil Code § 3289(b), "if a contract does not stipulate a legal rate of interest, the obligation shall bear interest at a rate of 10 percent per annum."
Kirk Adams : Here's a link to the code section: http://law.onecle.com/california/civil/3289.html
Kirk Adams : Thus, because that is the allowed legal rate of interest, then it would not likely be considered too high or unreasonable.
Kirk Adams : However, IF the agreement you signed has the provision about interest scratched through and you specifically removed this provision from the agreement, then you certainly have grounds to claim that you should be assessed no interest on the amount due.
Kirk Adams : If you can't agree on the interest, you would likely have to bring the matter before the judge and have him/her decide the issue.
Customer: Hi Kirk If there is no mention of interest in the promissory note does she have the right to charge me the 10% interest. Thanks Greg.
Kirk Adams : Hi - According to the above statute, IF there is no mention of interest in the contract, the 10% interest rate is the "default" rate of interest.
Kirk Adams : Thus, legally she can charge 10%.
Customer: thanks Kirk.