Common use of DEFAULT INTEREST CHARGES AND DEFAULT FEES Clause in Contracts

DEFAULT INTEREST CHARGES AND DEFAULT FEES. In the event of any default in payment and while the default continues you must pay the default interest charges. In the event of any breach of the contract or on enforcement of the contract, the default fees specified below are payable. Default interest is 36% per annum and is charged on the unpaid balance from the time that you fall into financial default, until you are no longer in financial default and calculated by multiplying the unpaid balance by the daily default interest rate. The daily default interest rate is calculated by dividing the annual default interest rate by 365. Default interest is charged to your account monthly. Your credit contract may allow the creditor to vary these fees and charges. Default interest charges and fees