late payment charges

[bobbygedd]

does anyone know how much of a late fee should be charged? i kinda remember someone saying it was like 2%, but i think that may be wrong. i had this credit card with only a $300 balance, and if i was late with the payment, there was a $50 late fee on the next bill. there are some people who id really like to charge as much as possible for late payments. also, if the issue goes to court, will the late fee issue hold up as well as the original balance? thanx

[gusbuster]

Any private credit card company can charge whatever they wish as long it is within your local state laws.

What some people do and what you can do is two different things.

A standard is an interest charge. Most states allow you to charge a late fee plus interest as long as you spell it out in your contract or you notify your clients about this charge in writing.( In otherwords with your bill.) Next time, do a search on this subject. It has been discussed many, many times.

John

[Chopper Lover]

I charge 5% for late payments that compound on an anniversary date each month (the tenth of the month). I have this stated in both my contracts and in my billing statements.

I also charge $25 for returned checks.

Mark

[Dennis]

I charge A $20.00 late fee. and it is printed in plain english the date it must be paid by, and what the charge is.
Never had to collect it .
Dennis

[crazygator]

Yeah I agree with 2 above. Either 5% or flat rate of $20.00. If this is for a large contract your better with the 5% rule. I hope it dont go to court, you never know how that will go sometimes! :confused:

[Grapevine]

We state 1.5 % after 30 days on the invoice. We also state service will be stopped after 60 days. If it's on the invoice there's not a whole lot they can ***** about.