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can you charge late fees after the lien is processed

TexasMechanics Lien

zlien filed a lien but I haven't heard anything from the payor. I'd like to charge late fees on the invoice in question. 1 because it's obviously late but more importantly to remind him that it is still unpaid. i don't want to use the intent to foreclose because he might call me on it, and it's another $2000 just to retain the lawyer.

1 reply

Dec 13, 2018
That's a good question, and also a fair point regarding the potential for a Notice of Intent to Foreclose. Where a contract provides for late fees, invoicing a payor for those fees could certainly serve as a reminder that a lien has been filed and that a debt is owed. Invoicing late fees that are not set out under contract might not be a great idea, though, and invoicing on amounts not actually owed might even open a party up to liability or at the very least give the other side an argument that you're acting in bad faith while trying to recover the debt. Of course, regardless of whether late fees are a potential option, there are a number of other ways to remind a payor of the debt they owe and the lien outstanding. One option, which might actually be similar to invoicing for late fees, is to send a notice that a payor is in violation of the Texas prompt payment statute, which zlien has broken down here: Texas Prompt Payment FAQs. Under the Texas prompt payment laws, if payments aren't made as required, the unpaid debt can grow at a rate of 1.5% per month - and if action is taken to recover under the prompt payment statutes, attorney fees may also be awarded. Notifying a payor that a lien claim isn't the end of the story - that serious penalties may also be accruing in the form of interest - could help to get payment talks moving without putting an emphasis on the enforcement of a lien.
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