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How much interest can I charge for overdue and unpaid storage fees?

Bakersfield, CA |

I was asked to store a '69 chevy car in my garage for a few months until a move was made f/ Bakersfield to Los Angeles, Ca. The amt. agreed upon was $25 monthly. I was paid the first two months but have not received a pmt in 6mo. I am putting a lien n the vehicle and need to know how much interest can be charged.

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Attorney answers 2

Posted

To the extent understood, California Civil Code section 3289 states:

(a) Any legal rate of interest stipulated by a contract
remains chargeable after a breach thereof, as before, until the
contract is superseded by a verdict or other new obligation.
(b) If a contract entered into after January 1, 1986, does not
stipulate a legal rate of interest, the obligation shall bear
interest at a rate of 10 percent per annum after a breach.
For the purposes of this subdivision, the term contract shall not
include a note secured by a deed of trust on real property.

In a nutshell, you can normally charge 10 percent interest if no interest rate was agreed upon. If have a continuing issue, you should contact a attorney for detailed advice.

Posted

You should be able to ask for whatever amount is stated in your agreement, if any, or the legal rate which is 10% per year.

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