Adding a late fee to clients invoices.

Asked over 1 year ago - Los Angeles, CA

I have some clients that signed our agreement a while back ago. The agreement describes when invoices are sent- payment is due after 15 days. The agreement did not include any information about a late fee charge. Can I simply email clients and advised of "New Company Policy"- and describe that a late fee of $50 would be applied if late? Thank you.

Attorney answers (3)

  1. Frank Wei-Hong Chen

    Contributor Level 20

    6

    Lawyers agree

    1

    Answered . No, you cannot just email the clients to advise them of a new late fee. The clients would have to sign a written amendment to the original written agreement specifying when and how much the late fees would be.

    Frank W. Chen has been licensed to practice law in California since 1988. The information presented here is... more
  2. Michael Raymond Daymude

    Pro

    Contributor Level 20

    6

    Lawyers agree

    1

    Answered . I agree with Mr. Chen because I assume you are writing about a transaction that is not between "merchants" and because you intend your new policy to apply retroactively. If either of those assumptions is correct the answer is clearly no: You cannot charge a late fee simply by adding it to your invoice. In transactions between merchants, however, and with respect to new invoices such a late payment penalty may be lawful depending on all the circumstances of the transaction.

    I am licensed in California only and my answers on Avvo assume California law. Answers provided by me are for... more
  3. Constantine D. Buzunis

    Contributor Level 17

    2

    Lawyers agree

    Answered . I agree with the other attorneys

    Legal disclaimer:This message does not constitute legal advice and does not create an attorney-client relationship.... more

Can't find what you're looking for? Ask a Lawyer

Get free answers from experienced attorneys.

 

Ask now

24,850 answers this week

2,901 attorneys answering

Ask a Lawyer

Get answers from top-rated lawyers.

  • It's FREE
  • It's easy
  • It's anonymous

24,850 answers this week

2,901 attorneys answering