Bisno v. Kahn

Opinion

McGUINESS, P. J.

These appeals present the question of whether California’s usury law applies to a judgment creditor’s agreement to forbear collecting on a judgment. In the actions below, certain judgment creditors agreed to delay executing on their judgments in exchange for the payment of forbearance fees in addition to statutory postjudgment interest of 10 percent on the unpaid balance of the judgments. The judgment debtors now claim the forbearance fees are usurious.

We conclude the forbearance fees do not violate California's usury law. Usury liability is wholly a creature of…