After a balance becomes overdue, businesses in Maine must allow a grace period of 10 days before applying late fees. In Idaho, 5% late fee is the maximum late fee for overdue invoices. □ 5% of the amount of the payment past due □ 10 Day Grace Period Still, many businesses offer seven days of grace as a gesture of goodwill. Hawaiian businesses do not, however, need to provide their clients with a grace period before charging late fees on overdue balances. The maximum late fee applicable to overdue invoices in Hawaii is 8% of the balance per month. However, many businesses allow seven days of grace as a goodwill gesture. After a balance becomes overdue, Georgia businesses may immediately apply late fees without the need for a grace period. In Georgia, there is no maximum late fee for overdue invoices. Businesses in Florida must allow a grace period of fifteen days following the due date before applying late fees. In Florida, the law specifies the maximum late fee a business can charge is 5% of the overdue balance. □ Maximum late fee 5% of the amount of the payment past due □ 15 Day Grace Period should allow a grace period of five days following the due date before applying late fees. In Washington, D.C., the maximum late fee a business can charge is 5% of the overdue balance per month. Delaware businesses must also provide their clients with a five-day grace period before charging late fees on overdue balances. The maximum late fee applicable to overdue invoices in Delaware is 5% of the overdue balance per month. After a balance becomes overdue, Connecticut businesses are obligated to allow a grace period of nine days before applying late fees. In Connecticut, there is no maximum late fee for overdue invoices. Businesses in Colorado are not obligated to provide a grace period before applying late fees, however, we recommend allowing seven days as best practice. In Colorado, the law does not specify a maximum late fee you can charge. California businesses are also not required to provide their clients with a grace period before charging late fees on overdue balances, however, we recommend allowing seven days as best practice. There is no maximum late fee applicable to overdue invoices in California. Businesses in Arkansas are also not obliged to provide a grace period before applying a late fee however, we recommend allowing seven days as best practice. In Arkansas, there is no maximum late fee specified by law. After a balance becomes overdue, Arizona businesses should allow a grace period of five days before applying late fees. In Arizona, there is no maximum late fee for overdue invoices. Businesses in Alaska are required to allow a grace period of seven days following the due date before applying late fees. In Alaska, the law does not specify a maximum late fee you can charge. Businesses in Alabama must allow a grace period of seven days following the due date before applying late fees. In Alabama, there is no maximum late fee specified by law. In some parts of the world, the expectation is that businesses give a 30-day grace period in other areas, there is no grace period at all. The grace period you allow your customers can vary. Ready to explore how late fee laws in your state impact what you can charge on overdue invoices? Below, we cover the maximum late fee you are allowed to charge in each state, as well as the grace period you must allow your customers.Ī grace period is the amount of time immediately after a balance becomes overdue that isn’t liable for late fees. For information specific to your industry, we recommend contacting a legal professional. Please note that the information found in this blog serves to inform but does not constitute legal advice. So, without further ado, let’s take a look at each US state’s approach to late fees. As late fee laws differ from state to state, we’ve collated all the relevant information into one place to offer a jumping-off point.īy understanding the legal requirements and best practices in your state, you’ll be in the best position to apply enforceable late fees while maintaining healthy relationships with your clients. As an American business considering charging late fees, it’s essential to understand your rights and obligations.
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