What is the max interest rate a contractor can charge in california?

[See http://www.cslb.ca.gov/serp.html?q=contract+interest+rates&cx=001779225245372747843%3Atp8vx5o9m6y&cof=FORID%3A10&ie=UTF-8&submit.x=12&submit.y=11] A search of the above CA State Contractor’s License Board site revealed no information on a contractor’s permissible interest rates. Hence, it appears that only the general CA limitations would apply. Although exemptions exist for banks, pawnbrokers, credit card companies etc., if none is available, then the general limit is currently 10% p.a. No limit applies where there is a deferred payment on the sale of goods, i.e. a vendor may legally charge $100 for goods to be paid for today, but $200 for the same goods to be paid for in 30 days. What is the source of your info on 24.99%?

There are statutory late payment penalties on unpaid or late progress or retention payments of up to 2%/month, not compounded. "Interest" is subject to the usury laws, but if you include a valid liquidated damage clause in your contract it may be possible to claim late charges or liquidated damages that high on an annual rate.

Disclaimer: The materials provided below are informational and should not be relied upon as legal advice. I agree with my colleagues. Article XV of the California Constitution (see link below) sets our the usury limits. Subsection 1(1) of Article XV provides as follows: "(1) For any loan or forbearance of any money, goods, or things in action, if the money, goods, or things in action are for use primarily for personal, family, or household purposes, at a rate not exceeding 10 percent per annum; provided, however, that any loan or forbearance of any money, goods or things in action the proceeds of which are used primarily for the purchase, construction or improvement of real property shall not be deemed to be a use primarily for personal, family or household purposes;"