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Home>Levelset Community>Legal Help>How much interest am I able to charge on a construction contract that the debtor is 11 months late to pay on.In my contract I write 3% added a month 24% annual. Is this within Marylands laws?

How much interest am I able to charge on a construction contract that the debtor is 11 months late to pay on.In my contract I write 3% added a month 24% annual. Is this within Marylands laws?

MarylandConstruction Contract

Contract signed by property owner agreed to amount. Property owner paid half amount after job was completed. My contract specifies the conditions listed in above question. Am I able to include those additional fees or is there any Maryland law that entitles me to collect more additional fees than what are outlined in my contract? I am a residential contractor

1 reply

Jun 27, 2019
That's a good question, and I'll admit I'm not an expert on Maryland's limitations on interest penalties. That being said, this looks like a helpful resource from FindLaw on that subject: Maryland Interest Rates Laws.

For a little more insight, it might be helpful to reach out to a local Maryland attorney who's familiar with collections or business litigation. They might be a little more in tune with Maryland's limitations on interest.
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