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Decision in California Lawsuit Over Late Fees on Loan Payments

In Honchariw v. FJM Private Mortgage Fund, California District Court held late fees assessed against the entire unpaid principal balance of a loan constitutes unlawful penalties under California Civil Code Section 1671 providing clarity on a lender’s ability to charge late fees. ....

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California Supreme Court Upholds Liquidated Damages Decision

California Civil Code says liquidated damages provision is presumptively valid or invalid depending on contract. If it involves retail purchase or rental of personal property or services or lease of property for housing, liquidated damages provision is presumptively void. ....

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