Legal Question in Credit and Debt Law in Pennsylvania

What is the law for late fees on a service contract ( unpaid invoice for lawn service) in the state of Pennsylvania


Asked on 2/07/14, 4:30 pm

1 Answer from Attorneys

You generally cannot just add a late fee on. There should be written on your invoice that payment not received by the due date will incur a late fee/penalty equal to 5% or $5 (whichever is less).

See the Goods & Services Installment Sales Act (GSISA) 69 P.S. � 1306 set forth below:

� 1306. Delinquency charge; costs of collection

A contract may provide for the payment by the buyer of a delinquency charge on each installment in default for a period of not less than ten days in an amount not in excess of five percent (5%) of such installment or five dollars ($5), whichever is less, but a minimum charge of one dollar ($1) may be made. Only one such delinquency charge may be collected on any such installment regardless of the period during which it remains in default. The contract may also provide for payment of any actual and reasonable costs of collection occasioned by removal of the goods from the Commonwealth without written permission of the holder, or by the failure of the buyer to notify the holder of any change of residence, or by the failure of the buyer to communicate with the holder for a period of forty-five (45) days after any default in making payments due under the contract.

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Answered on 2/07/14, 10:19 pm


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