Interest charged on overdue invoice...?

Question

I live in Oregon, and this is for services ALREADY rendered but not paid for...

If I have signed a contract that does NOT mention the charging of interest if the invoice becomes overdue, however it IS mentioned on all overdue invoices that I send out, does the client still have to pay the added interest, or are they void from having to pay it because it was not mentioned in the original contract?

Answer 1

If you have a signed contract that doesn't address late fees and interest, shame on you! Most states have stipulated contract interest rates that you may be able to charge even if the contract doesn't provide for it. You should consult with a local attorney.

Answer 2

The original contract (invoice, etc) needs to state if there will be late charges, nsf fees or interest for past due.

That said, some state laws do regulate how that is done, although generally they only set limits as far as the maximum interest and fees you can charge, not making interest automatic.

Answer 3

No they are not void from having to pay because you mentioned it on the overdue invoice, they should of paid!

Answer 4

the terms of the original contract are binding.word to the wise:in the future,be sure the interest charges are spelled out in the original contract.as it stands,you have given your customer a 0 interest rate loan.I would begin the collection process immediately.be prepared for a write-off.

Answer 5

I dont know about oregon but in some states you are required by law to be registered to charge interest or it is a crime...but if you state it..i guess it is part of the total agreement...

Answer 6

I bet there's something in the contract that says "the terms of the contract can change at any time without notice" or some such "we can screw you anytime we like" clause..