Question
Can I collect late fees after a client paid late?
They paid the invoice but refuse the late fees in our contract. What are my rights?
Answer
If your contract clearly allows late fees, you can usually collect them even after the principal is paid. Those fees are part of the deal—not optional.
Send a short demand letter that:
- Explains why the fee applies and cites the exact clause
- Lists the late-fee amount and calculation
- Sets a firm payment deadline
Some states regulate late fees to ensure they’re reasonable and not penalties. Enforceability depends on your wording and local law. If unsure, a Legal Pro can share information about how your late fee clause may be treated under your state’s laws.
What to consider in your specific situation
Your ability to collect late fees depends on your contract details and applicable state laws. Consider:
- The wording and clarity of your late fee clause.
- State limits on late fee rates and timing.
- Documentation of when payment was due and made.
- How you invoiced or communicated late charges.
- Whether the client disputes the fees in writing.
For more clarity before sending your letter, consider using Rocket Copilot or a Legal Pro to review your contract language.
At Rocket Lawyer, we follow a rigorous editorial policy to ensure every article is helpful, clear, and as accurate and up-to-date as possible. This page was created, edited and reviewed by trained editorial staff who specialize in translating complex legal topics into plain language, then reviewed by experienced Legal Pros—licensed attorneys and paralegals—to ensure legal accuracy.
Please note: This page offers general legal information, but not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask a Legal Pro.
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Explore Rocket Lawyer solutions that can help you move forward
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Disclosures
- This page offers general legal information, not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask a Legal Pro.