Windhorst v. Adcock Pipe and Supply

In this case a retailer unilaterally has charged to its customer’s open account a one and one-half percent per month “finance charge.” The customer, who did not agree to pay and in fact has not paid any such charge, has sued for penalties under the usury laws, claiming that the charging alone of excessive interest constitutes usury. The trial court and the court of civil appeals have held for the retailer. 542 S.W.2d 222.

Article 5069-1.06 provides that any person who “contracts for, charges or receives” interest in excess of the amount authorized by law shall be liable for the penalties set…