Posts Tagged ‘usury’
Does a late fee make a loan usurious?
Posted by: David Leon in Contract law on July 5th, 2009
Not necessarily. The Texas Finance Code (Sec. 302) provides a safe harbor for late fees. In order to comply with the safe harbor, the late fee must not accrue until after 10 days past the due date, and the late fee must not be larger than five percent of the late payment (or $7.50, if that amount is greater.)
