I’m in the process of setting up an online billing system for my customers and just looking for some feedback for charging late fees, from both a legal standpoint and a practical point of view. Of course it would be outlined in the contract, but is it legal to do this? Also, do you think it’s practical to do this? Does anyone else here already have such a policy? And most importanly, How much should it be?
Thanks for any and all feedback.
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Replies
What kind of business? Service contracts? Remodeling projects?
Bob's next test date: 12/10/07
Repairs and handy services, billed hourly. It's not service contracts, but each customer will have an account. --------------------------------------------------------
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You need to check with an attorney about late fees. It's too easy to set your self up otherwise. Plus the rules vary from state to state.
"this dog may be old but he ain't cold. And he still knows how to bury a bone."
Lattimore
Thanks Robrehm. I would certainly check with an attorny before implementing anything, but some feedback on how others manage post-work payment schedules and dealing with late payments will give me some ideas of how to implement it.--------------------------------------------------------
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Tha'ts how I determined how to do it. What I wanted to do was closer to loan sharking (his words) . A good attorney in your area can answer better.
I have the maximum intrest applied and my contract template has the time allowed for m payment before they are in default left open so I can modify it as I need when writting the contracts."this dog may be old but he ain't cold. And he still knows how to bury a bone."
Lattimore
"What I wanted to do was closer to loan sharking (his words)"
I was discussing this with a friend who used to be an attorney. He made good point about giving off the impression of loan sharking, that I'm not lending money to people in a tight situation. To the contrary, the service I'm providing is not a necessity, and the people who hire me can well afford to pay on time. With that in mind, he feels, and I agree, that I should set the highest rate allowable by law, and it should be compounded monthly.
I'll be talking with a real attorney late next week, about this and some other business matters. --------------------------------------------------------
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