late fees to a bill
UPDATED: Oct 1, 2022
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late fees to a bill
I have a slow slow paying customer. we verbally agreed on price for plowing and
sanding. I told customer I bill once a month and payment is due when bill is
delivered. what is the law on adding 1.5 interest late fee on their bill for no
Asked on April 5, 2018 under Business Law, Maine
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 4 years ago | Contributor
It is legal IF the late payment interest charge was part of the agreement *before* the customer purchased the goods or services from you. You cannot add an interest charge after the fact or retroactively, but so long as the customer had knowledge of it ahead of time and so agreed to in agreeing to do business with you, it is legal. You should have it as term in your standard sale or services agreement.
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