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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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