My landlord included a clause in my rental agreement involving me paying 60% interest per month. I pay my rent based on automatic wire transfer, and didn't notice it stopped. I by mistake didn't pay my rent for two months, and was never notified. Finally my landlord notified me, and I immediately paid, but he is now demanding that I pay $3000 in interest for 2 months of late payments. Are there rules around excess interest charges, even though it is in the contract? (Yes - I know, I should have read the contract.) This all seems really unfair but I don't know what I can do about it.
2006-09-23 05:31:52 · 5 answers · asked by Jasper M 2 in Politics & Government ➔ Law & Ethics
Let him take you to court and try and collect. The judge will not be amused by his interest rates. Pay him a late fee of $15.00 for each month. Don't ask, pay and mark the check as late fees
2006-09-23 05:35:53 · answer #1 · answered by Colorado 5 · 0⤊ 0⤋
If it's called interest, then it's USURY and illegal in most states. Contact your state's Consumer Frauds division, perhaps in the Attorney General's Office.
I've never seen such an unconscionable clause in a lease, and of course because I don't know where you are I can't comment on its legality. But I would (1) write to the newspapers, (2) complain to the landlord-tenant board in your town if there is one, (3) file a small claims court action to get a declaration that you don't owe it, (4) deliver leaflets to every other tenant to find out their experience, (5) go to the local court and see what liitgation your landlord has been in before. (I did that once, long ago, and found my landlord was a constant litigator, suing or trying to sue lots of tenants, including in one case a diplomat with diplomatic immunity. Her name was Ann London, and she's long dead. I filed a misdemeanor criminal complaint against her for trying to steal my refrigerator (she changed the locks and wouldn't let me take it out.) She relented and the tried to sue me, finally giving up in the face of a counterclaim.)
2006-09-23 13:13:04 · answer #2 · answered by Anonymous · 0⤊ 0⤋
my goodness with this type of interest your rent would be $2500.00 per month.. if you can afford this type of rent ,, you should be smarter than the average bear.. any one can charge any thing they want if they can get a sucker to sign off on it...
the first thing you need to do is to go back to school and learn basic math. ,,, if this case goes to court you need to plead insanity... there is not a judge in the country that would not approve it.... and when you get out of this mess come and see me ,,,for i will rent you my home , ..
2006-09-23 13:13:30 · answer #3 · answered by RED WHITE AND BLUE 4 · 0⤊ 0⤋
don't pay rent for two months..that sounds like fair compensation for signing an illegal contract. this guy doesn't want to go to court. he has committed a very serious felony called usury. he can't go to court ....he will be convicted. if you bring the contract to the police he will go to jail..take the money.
2006-09-23 13:23:20 · answer #4 · answered by Anonymous · 0⤊ 0⤋
If it is truly interest it may violate your state's usury laws. Bring the lease to a local attorney.
2006-09-23 14:49:33 · answer #5 · answered by Anonymous · 0⤊ 0⤋