Late Payment Interrest?
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- fr3sh
Does anyone know of a good Canadian online law resource for freelancers/contracters? Any Canada/Ontario people know the laws regarding charing interrest on late payments?
- jpowell0
i was curious about the same thing fr3sh... what do people charge for a late payment? i want to say 10% every 30 days late.
- ********0
compare your self to credit card rate...
- jpowell0
do you put this penalty in your contract? or is there a law about late payments?
- ********0
there is no law...
and yo have to put it in to contract..grace period for payment is 30 days and that is not a statue law.
you can always give them written warning after 60 days and send it to collection agency.
charging interest dont work that much from my experience. i usually call and write them a written warning and send ti to collection agency.
- jpowell0
thanks mrD.
- ********0
dont charge amount like 10% per month.
cause if this goes to court, they could argue that you imposed unreasonable amount of interest eventhough they signed the contract...
i would say 20% per year .. its not much but it does get message across..
- matt250
most firms I have dealt with charge a late fee of 2% per month after 30 days -- up to 20% per year