Delspinigiai

Delspinigiai, also known as default or late payment interest, are charges payable by a debtor to a creditor when a financial obligation is not fulfilled on time. They are intended to compensate the creditor for the delay and to encourage timely payments. Delspinigius apply to money obligations such as invoices, loans, and other contractual payments and can be specified in the contract or governed by applicable law.

The legal framework for delspinigius in Lithuania typically allows the rate to be set by contract between the parties. If the contract does not specify a rate, statutory default interest may apply according to civil law. The rate may be expressed as an annual percentage and is usually calculated on the overdue amount from the day after the due date until payment, often on a simple interest basis. The method of calculation (daily, monthly, or yearly) and whether interest compounds can be defined by the agreement or by statutory rules.

Delspinigius are distinct from ordinary contractual interest, as they are triggered solely by late payment rather than the agreed financing terms. They may be charged in addition to any principal and other costs, but their amount and enforceability can be challenged if considered unfair or excessive by a court, particularly in consumer transactions or under consumer protection rules.

Practical considerations include ensuring payment terms clearly state the default interest rate and calculation method, maintaining documentation of due dates and payments, and consulting legal guidance when disputing rates or enforcement. See also civil law, interest, and contract law.