Maximum Late Fee | Penalties
Below are the maximum penalties that can be charged if an invoice is not paid. Any late fees must be written in the invoice at the time of sending it to a client. The late fee is calculated by the total amount owed multiplied by the interest rate (%) on a per annum basis.
By Country (Top 50)
| COUNTRY | MAXIMUM PENALTY | SOURCE |
| USA | 0%; however, most states implement a sales tax | N/A |
| Argentina | No maximum rate | N/A |
| Australia | 48% from interested collected plus other fees | Consumer Credit Act in NSW and ACT |
| Bangladesh | 6% | Trading Economics |
| Belgium | No maximum rate | N/A |
| Brazil | 6.5% | Banco Central Do Brasil |
| Bulgaria | No maximum rate | N/A |
| Canada | 60% | § 347 of the Criminal Code |
| Chile | 36% | Science Direct |
| China | 36% | Bloomberg |
| Colombia | 33% | Borradores de Economia |
| Dominican Republic | No maximum rate | Latin Lawyer |
| Finland | 7 percentage points higher than the interest rate applied by the European Central Bank | Finland Interest Act (633/1982) |
| France | An annual rate higher than 1/3 the average percentage rate applied by credit institutions is usury | French Consumer Code Article L313-3 |
| Germany | 5 percentage points above the basic rate of interest (currently 3.62%) | Section 288(1) of German Civil Code |
| Greece | 2 percentage points above the maximum contractual interest rate. | E-Justice |
| Hong Kong | 60% | Hong Kong Legistlation Cap. 163, Section 24(1) |
| Hungary | No maximum rate | N/A |
| India | At such rate as the Court deems reasonable | India Code Usury Laws Repeal Act, 1855, Section 2 |
| Ireland | 187% to 287% | Consumer Credit Act |
| Israel | 13% per annum, 17% per annum on arrear interest | Banking Regulation in Israel: Prudential Regulation versus Consumer Protection |
| Italy | 25% plus 400 basis points (or exceed average market rate by 800 basis points) | Lexology |
| Jamaica | 6% | Money Lending Act |
| Kenya | No maximum rate | N/A |
| Malaysia | 12% for secured loan, 18% for an unsecured loan | Moneylenders’ Act 1951, Section 17A |
| Mexico | No maximum rate | N/A |
| Morocco | No maximum rate | N/A |
| Netherlands | No maximum, except on consumer credit loans | Practical Law |
| New Zealand | No maximum rate | Commerce Commission New Zealand |
| Nigeria | 48% | Practical Law |
| Norway | No maximum rate | N/A |
| Pakistan | Interest not permitted under Pakistani laws for domestic lending | Practical Law |
| Panama | No maximum rate | N/A |
| Peru | No maximum rate | N/A |
| Philippines | No maximum rate | N/A |
| Poland | 4 times the pawn loan rate of the National Bank of Poland | Polish Civil Code Article 359(2¹) |
| Portugal | 7% or 9% (depending on in rem guarantee) | Law and Practice Portugal, Section 4.3 ( Full PDF) |
| Puerto Rico (USA) | 6% | Financing USA |
| Russia | Cannot exceed more than twice usual applicable rate | Civil Code Chapter 42, Section 1, Article 809(5) |
| Saudi Arabia | No maximum rate | N/A |
| Singapore | 4% per month | Singapore Ministry of Law |
| South Africa | 10% | National Credit Act, Chapter 5, Part C (105) |
| Spain | No maximum rate | N/A |
| Sri Lanka | 20%, 18%, or 15% | Sri Lanka Money Lending Ordinance Section 4(2) |
| Sweden | No maximum rate | N/A |
| Switzerland | 10% or 12% | Swiss Credit Consumer Act, Section 3 |
| Thailand | 15% | Thai Civil and Commercial Code Book 3, Chapter II, Section 654 (Full PDF) |
| Ukraine | No maximum rate | N/A |
| United Kingdom | No maximum for payday loans | Credit Unions Act 1979 |
| Vietnam | 20% | Vietnamese Civil Code, Chapter XVI, Section 4, Article 478(1) (Full PDF) |
| Zimbabwe | Not specifically defined | Moneylending and Rates of Interest Act, Chapter 14:14, Section 8 (Full PDF) |
Usury Rates by State
|
State |
USURY RATE | SOURCE |
| Alabama | 6% maximum for verbal agreements, 8% for written agreements. | § 8-8-1 |
| Alaska | Cannot exceed 10% or 5 percentage points above Federal Reserve interest rate; 10.5% if loan is more than $25,000. | § 45.45.010 |
| Arizona | 10% unless agreed upon in a written contract. | § 44-1201 |
| Arkansas | May not exceed the applicable rate of interest (17%) set forth in Section 3 of the Arkansas Constitution, Amendment 89 . | § 4-57-104 |
| California | 7% for money, goods, or things in action; 10% for money, goods, or things in action for personal, family, or household purposes; or the greater of 10% or 5% + the prevailing rate established by the Federal Reserve Bank of San Francisco for any other use. | Article XV |
| Colorado | Maximum is 45% per annum. If no written agreement exists, interest rate may not exceed 8%. | § 5-12-103 |
| Connecticut | Interest rate may not exceed 12%. | § 37-4 |
| Delaware | Maximum rate of interest is 5% over the Federal Reserve discount rate. No limitations on interest rates for loans exceeding $100,000. | § 2301 |
| Florida | 18% unless loan exceeds $500,000, in which case the rate of interest can be 25% (in accordance with § 687.071(2)) | § 687.03 |
| Georgia | Maximum interest rate is 7% if no written contract exists; 16% on loans of $3000 or less; and any rate of interest may be established by parties to a written contract for loans of $250,000 or more. | § 7-4-2 |
| Hawaii | 10% without a written contract; 12% for consumer credit transactions; and 10% on judgments recovered in any civil suit. | § 478-2, § 478-3, and § 478-4 |
| Idaho | Maximum of 12% if no contract exists. 5% plus base rate on money due on judgments. | § 28-22-104 |
| Illinois | 5% without a written contract, 9% maximum if agreed upon by parties to a written agreement. | 815 ILCS 205/4 and 815 ILCS 205/1 |
| Indiana | Interest rate may not exceed 8%. Consumer loans may be charged a maximum of 25%. | § 24-4.6-1-102 and § 24-4.5-3-201 |
| Iowa | 5% with no written contract; for written agreements, 2 percentage points above the monthly average 10-year constant maturity interest rate of US government notes and bonds. | § 535.2(1) and (3)(a) |
| Kansas | 10% maximum if no other interest rate was agreed upon. Bonds, bills, promissory notes, or other written instruments may stipulate a maximum of 15%. | § 16-201 and § 16-207 |
| Kentucky | Legal rate of interest is 8%. If a written agreement exists, the rate may be increased to 4% in excess of the discount rate on 90-day commercial paper in effect at the Federal Reserve Bank OR 19%, whichever is less, on loans of $15,000 or less. Any rate is permitted for loans in excess of $15,000. | § 360.010 |
| Louisiana | Maximum interest rate is 12% per annum. | § 9:3500(C)(1) |
| Maine | Without a written contract, maximum interest rate is 6%. Maximum rates for consumer credit sales are 30% for first $1,000, 21% between $1,000 and $2,800, 15% for more than $2,800, and 18% on all unpaid balances. | 9-B § 432 and 9-A § 2-201 |
| Maryland | Maximum is 6% unless a written agreement is established, in which case interest rate can be up to 8%. | § 12-102 and § 12-103 |
| Massachusetts | 6% maximum interest rate with no written agreement. Charging more than 20% interest is considered criminal usury. | Ch. 107 § 3 and Ch. 271 § 49 |
| Michigan | 5% if no written agreement exists, 7% if an agreement is made between the parties in writing. | § 438.31 |
| Minnesota | Interest rate is 6%, unless a different rate is agreed upon in writing. Interset rate may not exceed 8%. | § 334.01 |
| Mississippi | Maximum interest rate is 8% per annum. “Contract rate” may not exceed the greater of 10% or 5% above the discount rate on 90-day commercial paper in effect at the Federal Reserve Bank. | § 75-17-1 |
| Missouri | Rate of interest may not exceed 10% if a written instrument exists, unless the “market rate” is higher. | § 408.030 |
| Montana | Interest rate is 10% per annum. Parties may agree in writing to a maximum interest rate of 15% OR 6 percentage points above prime rate established by Federal Reserve System, whichever is greater. | § 31-1-106 and § 31-1-107 |
| Nebraska | Maximum interest rate is 16%. | § 45-101.03 |
| Nevada | Parties may agree in writing to any interest rate. Without a written agreement, the rate shall not exceed the prime rate at the largest bank in Nevada. | § 99.040 |
| New Hampshire | Maximum rate of interest is 10% | § 336:1 |
| New Jersey | Maximum rate of interest is 6% without a contract. Maximum rate of interest with a written contract is 16%. | § 31:1-1 |
| New Mexico | Rate of interest shall not exceed 15% without a written contract. | § 56-8-3 |
| New York | Interest rate is 6% per annum unless a different rate is prescribed in NY CLS Banking, in which case legal interest rate is 16%. | Gen. Oblig. § 5-501 and Banking § 14-A |
| North Carolina | Legal rate of interest is 8%. | § 24-1 |
| North Dakota | Maximum interest rate is 6%. Maximum contract rate is 5.5% higher than current cost of money but no less than 7%. | § 47-14-05 + 09 |
| Ohio | Written contracts may not stipulate a rate of interest exceeding 8%. | § 1343.01 |
| Oklahoma | Parties may agree to any rate permitted by state law; otherwise, 6% is the maximum rate without a written contract. | § 15-266 |
| Oregon | Maximum interest rate is 9%. | § 82.010(1) + (3) |
| Pennsylvania | Maximum interest rate is 6% for loans of $50,000 or less. | 41 P.S. § 201 |
| Rhode Island | Interest rate may not exceed the greater of 21% or the alternate rate of 9 percentage points plus the domestic prime rate. | § 6-26-2 |
| South Carolina | Legal rate of interest is 8.75%. | § 34-31-20 |
| South Dakota | 12% where no contract exists; no interest rate limit if parties agree in writing. | § 54-3-4 and § 54-3-16(3) |
| Tennessee | Unless the parties agree in writing, the maximum interest rate is 10%. | § 47-14-103 |
| Texas | Unless the parties agree in writing, the maximum interest rate is 10%. | § 302.001(b) |
| Utah | Unless the parties agree in writing, the maximum interest rate is 10%. | § 15-1-1 |
| Vermont | Maximum rate of interest is 12%. | 9 V.S.A. § 41a |
| Virginia | Legal rate of interest is 6%. If parties agree in writing, the interest rate may be a maximum of 12%. | § 6.2-301 and § 6.2-303 |
| Washington | Rate of interest may not exceed 12% OR 4 percentage points above the equivalent coupon yield of the average bill rate for 26-week treasury bills. | § 19.52.020 |
| West Virginia | Parties may agree to a maximum interest rate of 8%; otherwise, the legal interest rate is 6%. | § 47-6-5 |
| Wisconsin | Legal interest rate is 5%. | § 138.04 |
| Wyoming | Maximum interest rate is 7% if no agreement exists. | § 40-14-106 |