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

Asked 10 months ago - 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.

Attorney answers (2)

  1. Curtis Dean Colaw

    Pro

    Contributor Level 5

    1

    Lawyer agrees

    Answered . 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    contract is superseded by a verdict or other new obligation.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.

  2. Nicholas Basil Spirtos

    Contributor Level 20

    Answered . 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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