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Late fee's

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5 years 1 month ago #1845 by redjafa
Late fee's was created by redjafa
Hi, we are new business and have late fee penalties to ensure we are paid upfront for our service - is this illegal? and what if customers have signed a contract with this clearly on it? thanks

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5 years 1 month ago #1846 by David J
Replied by David J on topic Re: Late fee's
Hello Redjafa
No it is not illegal to have late payment fees mentioned in your terms but you may be better off to refer to the late payment legislation which gives you a statutory right to claim interest and compensation from late payers.
Also it may be easier to enforce.

The wording we have always recommended is:

We understand and will exercise our statutory right to claim interest and compensation for debt recovery costs under the late payment legislation if we are not paid according to agreed credit terms.

You can add this to each invoice or to your terms of business.

Best regards

David

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