What is the law on adding a 1.5 interest late fee on bill for non-payment?
Question Details: 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.
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.
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