Verzugszins · default interest
Default interest is owed as soon as a debtor is in default on payment of a pecuniary debt, regardless of any proven loss. It is one of the most frequent terms in formal reminders and statements of account.
Request a demoThe term in four languages
- German
- Verzugszins
- French
- intérêt moratoire
- Italian
- interesse moratorio
- English
- default interest
Definition
Default interest is the interest that a debtor in default must pay on a pecuniary debt. The Code of Obligations sets it at 5% per annum, even where a lower rate was stipulated by contract. A higher contractual rate continues to apply while the debtor remains in default. Default interest differs from contractual interest, which is paid for the use of capital, and from damages, which compensate for actual loss.
Swiss federal acts are published in German, French and Italian, and all three versions are equally authoritative. The English term shown here comes from the Federal Administration's English translation, published on Fedlex for information only. Where there is no translation, it follows common usage.
Full glossaryThe term in an official text
powered by Neur.onIst der Schuldner mit der Zahlung einer Geldschuld in Verzug, so hat er Verzugszinse zu fünf vom Hundert für das Jahr zu bezahlen, selbst wenn die vertragsmässigen Zinse weniger betragen.
A debtor in default on payment of a pecuniary debt must pay default interest of 5% per annum even where a lower rate of interest was stipulated by contract.
Source: Fedlex, Code of Obligations. In Corrext, this segment and the ones around it appear in Fast lookup CHnell, each with its reference.