This regards a recent legal case. Even when “late fees” is used in the lease rather than “interest,” the amount of such a fees can still be limited by law. The recent case of Cleo Realty Assoc., L.P. v. Papagiannakis involved late fees in the amount of 4% per month or 48% per year. The court held that New York’s usury statute that an interest charge of more than 25% per year is a criminal offense determined such fees as unenforceable.
1.5% per month would be the appropriate legal ballpark.
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