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MONEYLENDERS ACT (NORTHERN IRELAND) 1933 - SECT 7

Prohibition of compound interest and provision as to defaults.

7. Subject as hereinafter provided, any contract made after the commencement
of this Act for the loan of money by a moneylender shall be illegal in so far
as it provides directly or indirectly for the payment of compound interest or
for the rate or amount of interest being increased by reason of any default in
the payment of sums due under the contract:

Provided that provision may be made by any such contract that if default is
made in the payment upon the due date of any sum payable to the moneylender
under the contract, whether in respect of principal or interest, the
moneylender shall be entitled to charge simple interest on that sum from the
date of the default until the sum is paid, at a rate not exceeding the rate
payable in respect of the principal apart from any default, and any interest
so charged shall not be reckoned for the purposes of this Act as part of the
interest charged in respect of the loan.

© 1933 Crown Copyright

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