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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!

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Attorney answers 1

Posted

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"?

Asker

Posted

It says we reserve the right to charge late fees. Is there a limit on that? Thanks!

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