Legal Question in Business Law in Illinois

Instituting a Late Fee Policy

How do we institute a late fee policy to our existing clients, who are located across the U.S. (we are in IL)? Do they need to sign something? How much notice do we need to provide? What is the max amount we can charge (the bills are anywhere from $500 to $60,000)? We are a small business (Internet publisher) that sells ad space and memberships. Thank you


Asked on 12/15/07, 10:39 am

2 Answers from Attorneys
Joseph Michelotti Michelotti & Associates, Ltd.

Re: Instituting a Late Fee Policy

on an unwritten contract, just give them notice. On a written contract you need to terminate the old contract and start a new one.

check out my website - www.michelottilaw.com

email me if you have any questions - joe @michelottilaw.com

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Answered on 12/16/07, 10:26 am
Zedrick Braden III Ainsworth & Associates PC

Re: Instituting a Late Fee Policy

Hello. I suggests that you begin with

a letter advising each client of their

delinquency, and that if they do not pay in full within 30 days or make

reasonable payment arrangements, they will be subject to a late charge of say 2% of the total delinquency. In my opinion such an approach will be reasonable. Of course the alterna-

tive is the filing of lawsuits to collect what is due. Will be happy to

advise you further and in more detail.

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Answered on 12/15/07, 10:00 pm


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