Legal Question in Business Law in California

I manage a home care business in California. We have a client that is constantly late with their payments and have bounced three checks the last 10 months. They have made payments on their past due account. The problem is that the biller in our office did not charge them a late charge for the late payments on the invoices or the three bounced checks. Can we charge them on those fees and how much percent.


Asked on 5/22/10, 4:51 am

3 Answers from Attorneys

Jonathan Reich De Castro, West, Chodorow, Glickfeld & Nass, Inc.

What you can charge depends on your agreement with them. More to the point, why are you continuing to do business with them under the circumstances you describe?

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Answered on 5/25/10, 10:35 am
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

If your contract does not provide for late charges, interest, etc., you probably lack any legal basis to bill for and collect such charges and fees, but nothing prevents you from trying. If your contract does, however, provide for late charges and/or interest, you are legally entitled to enforce those provisions if they were a reasonable estimate of your damages at the time the contract was made. Unreasonable charges or usurious interest cannot be enforced.

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Answered on 5/25/10, 12:14 pm
Anthony Roach Law Office of Anthony A. Roach

Mr. Whipple is right. Charging late fees is usually a matter of contract. It depends on what is in your contract.

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Answered on 5/26/10, 6:55 pm


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