Legal Question in Business Law in Tennessee

Big company won't pay late fees

I own a maintenance and hanyman business. I have done a couple of calls for a home monitoring system company for the elderly. I most recently did a call for them on September 14. Payment was due within 30 days to prevent our $50 late fee from being incurred. I have been through the ringer trying to get the money I am owed. The total amount due, as of 2 days ago is only $114.95. That includes my service call, $45, the late fee of $50, and 2 months of 10% compounding interest. All of our late fee policies were stated on our original bill. Just 2 days ago I received a check for $45, marked ''final payment''. I called to find out about my late fees that were promised to me in earlier communication. The manager I spoke to threatened me, stating that they would keep using me if I would agree to just accept the $45, but if they paid me the late fees they incurred, they wouldn't be calling me ever again. I said that I wanted the money I was owed. They said a check would be cut within 48 hours. It remains to be seen if I get the other $69.95 I'm owed. I just want to know if it is either unethical or illegal to say that if I demand payment, they won't use me agian. Thanks


Asked on 12/15/04, 3:43 pm

2 Answers from Attorneys
James R. Becker, Jr. Becker Law Firm

Re: Big company won't pay late fees

It is not illegal for them to state that they will not be using you in the future if you demand payment. As to the ethics, consider whether you would want them as a client if they are going to be late on payment, not abide by the terms of the deal, then make a threat to obtain their objective of reduced payment.

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Answered on 12/15/04, 5:17 pm
Daniel Harrison Berger Harrison, APC

Re: Big company won't pay late fees

There's nothing illegal about threatening to never use your company. Personally, I think it is unethical to make that threat for the sole purpose of reducing a bill that's clearly owed.

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Answered on 12/15/04, 5:57 pm


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