What is the maximum late fee one can charge on a promissory note in Illinois?

Question

I loaned someone money. They agreed to a $25/day late fee if they defaulted on the loan. They defaulted. The late fees now exceed $12k. Which is more that the principal amount. I want to know what would hold up in court if I have to go that route. Thanks.

Answer 1

It probably wouldn't, and would get reduced. But if you want your money back at this point, you do probably have to sue them - if they're over a year late, not likely they're going to show up anytime soon with your money to give you.