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Late charge - how much?
Thread poster: Zareah (X)
Zareah (X)
Zareah (X)  Identity Verified
United States
English to German
+ ...
Jan 1, 2002

I was wondering how high my late charge would be (just in case).

Is there an average late charge (X.X %)?

What\'s \"normal\"?



Thanks in advance,

Nadine
 
Mats Wiman
Mats Wiman  Identity Verified
Sweden
Local time: 18:46
Member (2000)
German to Swedish
+ ...
In memoriam
Personal experience and personal opinion: 1.5%/month Jan 2, 2002

= 18 % per annum.

This figure is not only derived from the interest level but also includes a disturbance\' and \'hassle\' factor.

When interest levels were higher it used to be 2%/month
 
Ralf Lemster
Ralf Lemster  Identity Verified
Germany
Local time: 18:46
English to German
+ ...
Depends on the country and on the currency... Jan 2, 2002

...obviously, 18% p.a. would be appropriate, at least from your point of view - the question is whether the rate is enforceable. Under recent German legislation, the rate you can charge if a debtor has defaulted on payment is linked to a key ECB rate (\'default\' in this context means 30 days after receipt of invoice - the snag is that you will need to prove they received it, so realistically this means 30 days after receipt of a reminder by registered mail, unless you want to send every invoice... See more
...obviously, 18% p.a. would be appropriate, at least from your point of view - the question is whether the rate is enforceable. Under recent German legislation, the rate you can charge if a debtor has defaulted on payment is linked to a key ECB rate (\'default\' in this context means 30 days after receipt of invoice - the snag is that you will need to prove they received it, so realistically this means 30 days after receipt of a reminder by registered mail, unless you want to send every invoice that way...).

Personally, I have only once managed to actually receive an extra charge for late payment - having said that, I have dumped a few customers where the delay was not due to an obvious error, but sheer negligence.



HTH - Ralf ▲ Collapse
 
Zareah (X)
Zareah (X)  Identity Verified
United States
English to German
+ ...
TOPIC STARTER
thank you Jan 2, 2002

ok, thank you very much - I\'ve never had to deal with late charges so I was wondering.

Thanks again!



Nadine
 
John Kinory (X)
John Kinory (X)
Local time: 17:46
English to Hebrew
+ ...
UK law Jan 2, 2002

In the UK too, a small company (incorporated or not) can charge a late payment fee linked to the Bank of England base rate. It is enforcable in principle, but of course a lot of hassle. Probably better to dump these people, and enter the amount as a bad debt in your accounts.

The industry-standard these days, BTW, is not \'The cheque is in the post beyond the orbit of Neptune\', but \'We never received your invoice\'. Emailed invoices are legal - but keep a copy! ... See more
In the UK too, a small company (incorporated or not) can charge a late payment fee linked to the Bank of England base rate. It is enforcable in principle, but of course a lot of hassle. Probably better to dump these people, and enter the amount as a bad debt in your accounts.

The industry-standard these days, BTW, is not \'The cheque is in the post beyond the orbit of Neptune\', but \'We never received your invoice\'. Emailed invoices are legal - but keep a copy!
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Late charge - how much?







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