What is the name of your state (only U.S. law)? Pennsylvania
I have a small business in Pennsylvania. A supplier of mine has terms of 15 days, and will charge 1.5% every 30 days after the 15 days. Fair enough. On a recent transaction the payment went over the 15 days (by agreement) and they immediately sent me an invoice for 30 days interest. However, I settled the bill early after only 10 days and asked for a credit on the remaining 20 days interest. But now they tell me that I must pay the full interest for the 30 days, whether the bill is settled on the 2nd day or the 30th day.
Question - is it legal? Surely, no entity is entitled to charge interest where no interest is due? No formal agreement was signed.
Comments would be appreciated.
I have a small business in Pennsylvania. A supplier of mine has terms of 15 days, and will charge 1.5% every 30 days after the 15 days. Fair enough. On a recent transaction the payment went over the 15 days (by agreement) and they immediately sent me an invoice for 30 days interest. However, I settled the bill early after only 10 days and asked for a credit on the remaining 20 days interest. But now they tell me that I must pay the full interest for the 30 days, whether the bill is settled on the 2nd day or the 30th day.
Question - is it legal? Surely, no entity is entitled to charge interest where no interest is due? No formal agreement was signed.
Comments would be appreciated.