Hello, I currently do maintence for HOA. We have for years now operated from signed estimates to do any work. All of my invoices indicate that over 30 days late will result in a 25% late fee per month. Currently, I have a management company that has paid these late fees in the past...but are now behind on 4 invoices and are telling me I'm charging illegal late fees after asking them to pay. Appriciate any advice
Generally speaking, interest over 18% per year (1.5% per month) is considered usurious, and therefore illegal. There may be an argument that the late fee is not an interest charge, but that's going to be a stretch. You should consult with an attorney regarding your options at this point.