Who gives you advice on late fee verbage?

Discussion in 'Business Operations' started by HighGrass, Feb 19, 2006.

  1. HighGrass

    HighGrass LawnSite Bronze Member
    from Z5 MA
    Posts: 1,237

    Who gave you advice on what to print on the bottom of your invoices regarding late fees such as, "Payment due upon reciept. Payment over 30 days subject to 1.5% compounded daily...."
     
  2. befnme

    befnme LawnSite Bronze Member
    Posts: 1,413

    just sharing business ethics back and forth .but you have to be careful it depends where you are as to how much late fee you can charge .and for how long .
     
  3. HighGrass

    HighGrass LawnSite Bronze Member
    from Z5 MA
    Posts: 1,237

    I guess that's the way I should have worded it...I mean, would you go to a "tax" attorney, CPA,....?
     
  4. gqnine44

    gqnine44 LawnSite Senior Member
    Posts: 501


    But if customer signs that they will pay a $39 late fee or whatever, then it should be legal. If the customer doesnt sign then you have to follow state laws. This is my understanding, I could be wrong.
     
  5. CleanCutLawns

    CleanCutLawns LawnSite Member
    Posts: 23

    I sent out a letter a couple of months ago to all of my customers stating that a $15 late fee would apply if payment was not received by the 3rd of the month (all payments are due on the 1st of each month). Do I have any leagal standing to collect if they do not pay on time?
     
  6. gqnine44

    gqnine44 LawnSite Senior Member
    Posts: 501

    You may not be able to enforce it legally if $15 exceeds the state's limits on late fees but chances are your customers will either start paying on time or pay the late fee. Any customer who fights you on it probably isnt worth having.
     
  7. walker-talker

    walker-talker LawnSite Platinum Member
    from Midwest
    Posts: 4,771

    I wouldn't think so..at least not without a signature.
     
  8. LB1234

    LB1234 LawnSite Gold Member
    Posts: 3,210

    All these questions on whether or not this is legal, this should/shouldn't be, this states rules & regs, etc.

    I handed my contract over to my attorney who added in all the necessary rules and regs, especially the part about the finance rates. As of '05 here in jersey its 1.5% per month or no more than 18% per year.
     
  9. LB1234

    LB1234 LawnSite Gold Member
    Posts: 3,210


    You are wrong, in jersey they can sign up for a 5% late fee per month, but it is illegal and I could get in trouble for it...extent of the trouble, I don't know.
     
  10. gqnine44

    gqnine44 LawnSite Senior Member
    Posts: 501

    Jersey may be different but I know if I am even one day late paying my credit card bill no matter what the balance I am looking at a fee of at least $39. I agreed to this in all the fine print when I signed up for the card. The same with my cell phone, health insurance, ect.
     

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