Hi,
Happy New Year to all. I am currently compiling some company terms for 2018 and I have come across another companies interest terms which state:-
'We may charge interest at a rate of 4 percent over Base Lending Rate per month, on a daily basis on overdue accounts'
Is interest therefore compounded monthly? Also if interest charges begin on 26th Sept and payment is received on 6th Oct do I calculate interest at 4.5% / 30 days x 5 days (Sept) + 4.5% / 31 days x 6 days (Oct)? Sorry to ask.
I was considering using the above term but I want to make sure our terms are easy to calculate and unambiguous. Would the above term and rate be acceptable and deemed fair and lawful? Any comments are gratefully received.
Many thanks,
H.
Happy New Year to all. I am currently compiling some company terms for 2018 and I have come across another companies interest terms which state:-
'We may charge interest at a rate of 4 percent over Base Lending Rate per month, on a daily basis on overdue accounts'
Is interest therefore compounded monthly? Also if interest charges begin on 26th Sept and payment is received on 6th Oct do I calculate interest at 4.5% / 30 days x 5 days (Sept) + 4.5% / 31 days x 6 days (Oct)? Sorry to ask.
I was considering using the above term but I want to make sure our terms are easy to calculate and unambiguous. Would the above term and rate be acceptable and deemed fair and lawful? Any comments are gratefully received.
Many thanks,
H.
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