Highest interest rate allowed by law?

[suzieforgo]

What is the name of your state (only U.S. law)? Pennsylvania
An apartment complex suddenly stopped paying for work my company completed. The agreement states terms are 90 days from completion of work and late payments are subject to a 5% penalty. Can I legally charge 5% on balances (plus the interest from the last 30 days) every 30 days until the invoices are paid in full? This is the first time I have ever encountered this and have been in business over 20 years! Thank you.

 

[HomeGuru]

What is the name of your state (only U.S. law)? Pennsylvania
An apartment complex suddenly stopped paying for work my company completed. The agreement states terms are 90 days from completion of work and late payments are subject to a 5% penalty. Can I legally charge 5% on balances (plus the interest from the last 30 days) every 30 days until the invoices are paid in full? This is the first time I have ever encountered this and have been in business over 20 years! Thank you.

**A: you have been in biz for 20 years and do not understand the terms and conditions of your own contract with respect to the 5% penalty?
Tell us if the 5% penalty is actually a penalty, a late fee or if it is interest. Also what makes you think you can compound the 5% since your agreement states only a 5% penalty. There is no reference to a daily, weekly, monthly or yearly penalty. Suffice to say, if $100 is not paid within 90 days of completion of work, all that is due is the $100 and 5% even 2 years later.

 

[suzieforgo]

Understanding my contract

After 20 years in business this is the first time we have been stiffed. I have had the very good fortune of having responsible, upstanding customers.
Granted, I am not corporate America just a guy trying to make a decent living but as the business grew I copied the verbage directly from another contractor's form, it states Payment terms are Net 90 days from the date work is completed and late payments are subject to a 5% penalty. It has been over a year since I did the work. It sickens me to have to take money out of my pocket in order to get my money. I do know there is no provision for Attorney's fees. So, you would argue that 5% is it no matter how long in bad faith they wrongfully withheld payment? Thank you very much.

 

[suzieforgo]

5% is it??

After 20 years in business this is the first time we have been stiffed. I have had the very good fortune of having responsible, upstanding customers.
Granted, I am not corporate America just a guy trying to make a decent living but as the business grew I copied the verbage directly from another contractor's form, it states "Payment terms are Net 90 days from the date work is completed and late payments are subject to a 5% penalty". It has been over a year since I did the work. It sickens me to have to take money out of my pocket in order to get my money. I do know there is no provision for Attorney's fees. So, you would argue that 5% is it no matter how long in bad faith they wrongfully withheld payment? Thank you very much.[/QUOTE]

 

[Zigner]

After 20 years in business this is the first time we have been stiffed. I have had the very good fortune of having responsible, upstanding customers.
Granted, I am not corporate America just a guy trying to make a decent living but as the business grew I copied the verbage directly from another contractor's form, it states "Payment terms are Net 90 days from the date work is completed and late payments are subject to a 5% penalty". It has been over a year since I did the work. It sickens me to have to take money out of my pocket in order to get my money. I do know there is no provision for Attorney's fees. So, you would argue that 5% is it no matter how long in bad faith they wrongfully withheld payment? Thank you very much.

No, that's what YOU argued in your contract.

 

[suzieforgo]

I appreciate your advice but you have yet to answer my original question with regard to INTEREST RATES - highest permitted by law?? In the state of PA or is that federally regulated? Thanks again.