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What is the legal limit for late payment fees?

Virginia Beach, VA |

I run a small ISP (C corp). We have several clients who are never on time paying their monthly invoices, and it's costing us too much. I would like to start charing late fees. What is the maximum amount that I can charge per month? Thanks in advance!

Attorney Answers 1

  1. It may depend on whether you are charging 'interest' or a one time 'late fee'. Virginia usually caps interest around 8%.

    Does the contract with your client(s) specify a certain amount? or does it just say something like "we reserve the right to charge late fees"?