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Vent: Finally got that deadbeat to pay up after 4 months of chasing
Had a client from back in May who owed me $1,200 for a logo package. They kept giving me excuses like 'the check is in the mail' and 'my accountant is on vacation.' I sent 7 reminders and finally threatened to take them to small claims court. They paid within 3 hours after that email. Now I'm adding a 5% late fee to all my contracts upfront. Has anyone else had luck with a specific late fee number that actually works?
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jackson.max3mo ago
Yeah 5% is way too high, most states cap late fees at 1-2% per month.
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faith273mo ago
Read something the other day about how payday lenders basically use those high late fees to trap people. It's not about getting paid on time, it's about making the loan impossible to escape. @angelamurphy contracts do mean something but there's also a thing called unconscionable terms in contract law. A 5% monthly fee compounds to like 80% APR just from late fees alone. That's predatory no matter how you slice it. Most people don't really understand the math when they sign those papers.
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angelamurphy3mo ago
Well, some places figure a higher late fee is the only way to get people to actually pay on time, and if you agree to the terms upfront, that's your choice. Isn't a contract supposed to mean something even if the fee seems steep?
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