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  1. #11
    Join Date
    May 2014
    Posts
    4

    Default Re: Can You Apply Interest to Invoices That Are Past Due

    90% of my collection matters are with homeowners and the rest with Property management companies.
    All of our customers are made aware verbally at the time of signing contract that if they do not pay the invoice there will be a 1.5% and the clause is clearly indicated in the contract.

    I am just looking for a clear answer as to weather or not I can pursue interest on an invoice that is 60 months old if the invoice payment is not released to us in a timely fashion (10 business days) from receipt of my notice or should I just obtain legal assistance to pursue?
    I have been getting conflicting information and was recently told by an attorney that if the interest amount exceeds the invoice total I can not pursue the actual value of the interest?

    I want to have legal standing in my final pursuit prior to handing over to a collections attorney.
    Some legal verbiage to add to my final notice would be greatly appreciated

  2. #12
    Join Date
    Nov 2013
    Posts
    7,056

    Default Re: Can You Apply Interest to Invoices That Are Past Due

    My experience has been that attaching the interest to the invoice is usually ignored. However, you can always use the interest accrued as a bargaining chip to get the principal paid. Pay within 10 days and we will wave the interest due.

  3. #13
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Can You Apply Interest to Invoices That Are Past Due

    If the interest was included in whatever contract you entered into with the customer, yes. If it wasn't, no.

    No idea what you mean by wanting to have legal standing. Legal standing to act is conferred upon you to act as a collector of the debts by your employer.


    Legal verbiage? Usually when people try to get fancy they end up not saying what they think they are saying. Keep it simple and understandable.


    How do you end up with a total owed greater than the original debt in 60 months? It sounds like you are compounding interest since 60 months of non-compounded interest ends up adding 90% to the debt.

  4. #14
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Can You Apply Interest to Invoices That Are Past Due

    Quote Quoting RJSteele
    View Post
    I am just looking for a clear answer as to weather or not I can pursue interest on an invoice that is 60 months old....
    You either have a clear contractual right to interest, or you do not. You either have a contractual right to compound interest monthly, or you do not. Your contracts are either with corporations, or they are not. If you don't share the relevant facts, you aren't going to get more information than has already been provided.
    Quote Quoting RJSteele
    ...if the invoice payment is not released to us in a timely fashion (10 business days) from receipt of my notice or should I just obtain legal assistance to pursue?
    If your employer is willing to pay for its lawyer to assist and advise with collections, then by all means take advantage of that assistance. To the extent that you don't know the answers to the necessary analysis of your right to charge interest, or in what amount, presumably the business lawyer will be proactive about gathering that information either through you or through others in your employer's company.
    Quote Quoting RJSteele
    I have been getting conflicting information and was recently told by an attorney that if the interest amount exceeds the invoice total I can not pursue the actual value of the interest?
    There's no such law, as such, but the lawyer could be alluding to something else, such as a usury issue based on facts you haven't shared with us. We would have no way of knowing. If you want the lawyer to clarify his reasoning, ask him to clarify his reasoning.

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