Protections against Due Upon Receipt?

[Subjection1]

What is the name of your state? WI

When a company sends you a bill, and it says, “Due Upon Receipt”, how long is it before they can legally start charging late fees? If taken at face value, it sounds like they could do it beginning with the day after the customer received the bill in the mail. But that doesn’t give a customer a reasonable amount of time to make the payment.

Is there any laws that protect customers from being charged late fees for a certain amount of time when a company says that a bill is due as soon as they receive it?

 

[quincy]

What is the name of your state? WI

When a company sends you a bill, and it says, “Due Upon Receipt”, how long is it before they can legally start charging late fees? If taken at face value, it sounds like they could do it beginning with the day after the customer received the bill in the mail. But that doesn’t give a customer a reasonable amount of time to make the payment.

Is there any laws that protect customers from being charged late fees for a certain amount of time when a company says that a bill is due as soon as they receive it?

It depends on the contract terms.

 

[Subjection1]

It depends on the contract terms.

Well, in my case there wasn't a contract. To be specific, it was a plumbing job where they came to replace my water heater. I just made a phone call, and they came and did the work. Then I got a bill in the mail. That was the first paperwork involved.

 

[quincy]

Well, in my case there wasn't a contract. To be specific, it was a plumbing job where they came to replace my water heater. I just made a phone call, and they came and did the work. Then I got a bill in the mail. That was the first paperwork involved.

“Due upon receipt” means exactly what it says. If you receive an invoice that says the payment is due upon receipt of the invoice, you are expected to submit your payment at that time. Seven days is generally given after receipt of the invoice to allow for mailing time.

 

[Taxing Matters]

Well, in my case there wasn't a contract. To be specific, it was a plumbing job where they came to replace my water heater. I just made a phone call, and they came and did the work. Then I got a bill in the mail. That was the first paperwork involved.

Ok, so you did have a contract, just a verbal one instead of a written one. In this kind of situation generally, unless specifically agreed otherwise, it would be presumed by most people that the agreement was that you would pay at the time the work was performed or, if the exact charges could not be known at that point, when you were given the invoice to pay. Here he gave you the invoice for the job, and the due on receipt would seem to merely reflect what the agreement was: you'd pay when given the invoice. If you promptly mail the payment that should be good enough to satisfy the contract.

As far as late fees, unless there was an agreement that the plumber could add late fees and what those fees would be he will be unable to add late fees. However, should the plumber sue you to collect he will be entitled to at least the statutory interest rate allowed by Wisconsin law in addition to an award for his damages.

 

[adjusterjack]

Well, in my case there wasn't a contract. To be specific, it was a plumbing job where they came to replace my water heater. I just made a phone call, and they came and did the work. Then I got a bill in the mail. That was the first paperwork involved.

Why would you NOT just mail a check the same day or the day after you got the bill?

 

[quincy]

Actually, it is sort of nice that you were invoiced for the work. Most companies will require payment at the time of service.

 

[cbg]

OP, how long do YOU think you should be given to pay before you are assessed a late fee?

 

[adjusterjack]

Every contractor I've ever hired has given me a bill on completion and I write him a check right then.

 

[FlyingRon]

What makes you think you need "protections." I've even had attorneys send me bills marked PAST DUE when they were the first bill that was sent me (and really, it was just a request to top up the retainer, they still technically had more of my money they hadn't earned yet). It's largely without any meaning. Technically, unless there's an agreement to the contrary, payment is always "due" when the goods or services delivered. However, what they can do about it if you don't immediately remit payment varies.

 

[zddoodah]

When a company sends you a bill, and it says, “Due Upon Receipt”, how long is it before they can legally start charging late fees?

Depends on the terms of the contract between the buyer and the seller.

Well, in my case there wasn't a contract. To be specific

That's probably not true. However, if there was no contract providing for "late fees," then there would no basis for assessing them.

To be specific, it was a plumbing job where they came to replace my water heater. I just made a phone call, and they came and did the work. Then I got a bill in the mail.

If you failed to pay and the vendor had to sue to collect, it would be entitled to interest, and the clock would start running from a reasonable time after presentation of the bill.

Why do you ask? Are you planning on stiffing the plumber?

 

[quincy]

Depends on the terms of the contract between the buyer and the seller.



That's probably not true. However, if there was no contract providing for "late fees," then there would no basis for assessing them.



If you failed to pay and the vendor had to sue to collect, it would be entitled to interest, and the clock would start running from a reasonable time after presentation of the bill.

Why do you ask? Are you planning on stiffing the plumber?

There was a contract. It (apparently) was not a written contract but it was a contract nonetheless.

 

[Zigner]

There was a contract. It (apparently) was not a written contract but it was a contract nonetheless.

zddoodah acknowledges that. His comment was "...if there was no contract providing for "late fees"..." - and his statement is correct. There was no contract providing for late fees.

 

[quincy]

zddoodah acknowledges that. His comment was "...if there was no contract providing for "late fees"..." - and his statement is correct. There was no contract providing for late fees.

Ahh. So Doodah was essentially just repeating what others had previously said. Okay.

 

[Subjection1]

Why do you ask? Are you planning on stiffing the plumber?

I asked because I simply wanted to know in case it took a few days to get the payment to them and they decided to take advantage of those few days to start filing late fees against me.