What is a late fee

A late payment fee is a charge applied to a customer if a reminder or collection notice needs to be issued for an outstanding bill.

Implementation of late fees

Typically, a warning notice is issued to the business indicating the potential imposition of late fees before an actual demand for payment is made.

How much can you charge for a reminder fee? 

Generally, if a late fee is levied, it is expected to be paid. However, businesses often have the right to challenge the fee. There are channels for lodging an appeal if you consider the late fee to be unwarranted, which might postpone the payment while the dispute is being resolved.

If there is a late fee, it is crucial to have the right channels of communication open in order to address the fee and the option to waive or modify it in light of the situation. Thus, if the late fee is deemed unjustified, there are avenues for filing an appeal, which could delay payment while the matter is being settled. The requirement to pay late fees can therefore be contested.