The legislator intervened by adopting the Law on Interest in order to regulate the possible abuses that companies can exercise by imposing interest rates as they wish. Indeed, it is permitted to stipulate, or require, an interest rate in a contract.
It must be provided for in the agreement you signed with your supplier or that you asked a client to sign for any interest to be applied. Without a contract that clearly provides an interest rate, it is not allowed to simply add interest to the invoices and account statements that are sent.
In addition, the interest must be provided for, and be agreed between the parties. If the interest is clearly provided for according to your contract, but the rate is not indicated, the rate will then be 5% per year. In addition to clearly indicating it, the contract must state the annual and not monthly interest rate. If there is no mention of a clear annual rate, then the default rate of 5% will apply.
Please note that the maximum annual rate provided for by law is 60%, beyond that, it is an offense punishable by the Criminal Code. Finally, if you have paid this amount even though the legal provisions have not been respected, you can recover your money or deduct it from the amounts that you actually owe to this company.
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