What is the maximum amount I can charge my clients for a late fee?

UPDATED: Oct 1, 2013

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What is the maximum amount I can charge my clients for a late fee?

I am a small business and have many clients I work for.

Asked on October 1, 2013 under Business Law, Washington


Anne Brady / Law Office of Anne Brady

Answered 9 years ago | Contributor

The amount of late fee that you can charge should be specified in the contract you have with your client.  If you have not stated in your contract that you may charge a late fee and/or interest on unpaid balances, then technically you can not charge them.  Any reasonable late fee stated in a contract will be upheld.  A late fee would have to be exceedingly high to warrant being struck down by the courts as unconscionable.

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