[angiekduncan]

Is it legal to charge a $25 late fee on a unpaid $25 late fee.

[Mr. Knowitall]

What does your contract say? Is it a business or consumer contract?

[angiekduncan]

I board my daughters horse at Crk Stables. My daughter did a summer camp which in signing up stated there would be a $25.late fee if payment was not received on the first day of camp. I had put down a 50.00 deposit 3 weeks prior and paid the balance on Tuesday morning before the start of the 2nd day of camp, the first day of camp is only 2 hours, the remaining 4 days are 4 hours. A $25. late fee was assessed and I would of paid it but I had done a couple of favors for the owner so I thought she might do me a favor. I wrote a letter asking if it was possible for my late fees to be waived. The owner did not respond to my letter for about a month and a half at which time she refused to waive my late fee. The following statement I received showed an additional late fee of $50.00 which she said is 2 additional late fees added to the original late fee. I paid her the original late fee the day after I received her letter not realizing until I got her next months statement that she added 2 additional late fees onto the original.
Is this legal?

[Mr. Knowitall]

If the contract provides for only the single late fee, there would not appear to be a basis upon which to charge additional late fees.

[angiekduncan]

I have given my 30 day notice to discontinue boarding. I have a 200.00 refundable deposit. I know that if I do not pay the late fees the owner will deduct it from my refundable deposit. What course of action should I take should the owner deduct from my deposit.

[Mr. Knowitall]

If you believe amounts are wrongly withheld from your deposit, you could consider filing a complaint with the state attorney general's office, or seeking to recover the money in small claims court.

[angiekduncan]

Thank you for your advice. I appreciate it!