Default interest, in a loan agreement, at a rate of 4% compounded monthly, was not extortionate given the legitimate interests at play and so was not an unenforceable penalty, according to the High Court. This, third judgment, follows an earlier High Court judgment which had found the converse: the 4% default interest rate was a penalty and unenforceable … (more)
[A&O Shearman, 5 November 2025]
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