Do you have the right to the interests you claim?

Under the Civil Code of Quebec, the interest rate claimed must be the rate agreed upon by the parties or, in the absence of an agreement, the legal rate. Under the Interest Act, the legal interest rate is five percent per annum (5%). You can, however, agree on a higher interest rate.

Also under the Interest Act, and except for mortgages on real property or immovables, it is absolutely necessary that a written document, signed by the parties, mention the rate of interest on an annual basis. For example, if the contract only mentions a monthly interest rate of two percent (2%), without mentioning the rate on an annual basis (24%), you would only be entitled to the legal interest rate of five percent per annum. (5%). In addition, you can not claim an interest rate that you have unilaterally decided to impose on the other party. (ex: on an invoice or a statement of account) The other party must have accepted the proposed interest rate in advance.