Legal Question in Business Law in New York
Interest vs Late Fees
My girlfriend has her own drafting company
Awhile back she contracted several drafting jobs from another company and has had a hard time collecting her money. On her invoices it clearly states that there is a $25.00 late fee if not paid in thirty days. This has gone on for months now. So she has filed a claim in small claims court. My question is Are late fees different from interest fees and is there anything illegal about charging late fees like this.
1 Answer from Attorneys
interest vs. late fees
she shold be quite careful about how she charges late fees. If the $25 is a substantial portion of the job, a clever attorney like us here would accuse her of violating the usury laws and try to get the whole bill nullified. Better to charge interest at the legal annual rate.
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