Posted by Mary Pierce/PA on 4/18/05 6:35pm
Msg #32522

collections laws

Does anyone know of a good website to find laws or rules about charging late fees and finance charges for past due invoices? I live in PA.

Reply by Sheila/NJ on 4/18/05 7:56pm
Msg #32530

I have found www.lawyers.com to be a great resource. However, I believe it is always best to contact a professional for specifics.

Reply by Ted_MI on 4/18/05 10:12pm
Msg #32553

Mary,

As a general statement, I would not try to impose any late fees or finance charges unless you have some sort of pre-existing agreement (hopefully in writing) with the signing service or the title company with respect to such late fees or finance charges. You really can't unilaterally impose them after the fact, I don't believe.

I would condition your acceptance of a specific job upon their acceptance of your late fee/ finance charge "program". Maybe they will accept it; maybe they won't. Will there be some companies that might balk at accepting your conditions and consequently you might lose some work? Conceivably. That is the risk you run.

Reply by Happy_in_Fl on 4/19/05 2:43am
Msg #32578

Getting Paid for our Service

What I do- up front- on my first assignment with a 'first time Signing Service' only- When they require me to send them an invoice after the job is completed- On the invoice the box saying Terms- I put "net 30 days- or add $25 late charge"

Again for first time companies only. They have no qualms about saying they will dock you , if you don't do such and such- eg: call when done, fax back 25 pages of your notorized only papers- they want to know what and how we perform- so why not see how they perform on the pay side?

JMHO.

Reply by Your Destiny is in My Hands - Destiny D Taylor on 5/3/06 9:34pm
Msg #117587

Re: Getting Paid for our Service

that is a good idea I think i will start doing that. What do you do for companies that are not new clients and have paid you on time in the past but have recently started paying late?

Reply by sue on 4/19/05 7:51am
Msg #32595

Ted, I don't have a written contract with the plumber but when that invoice arrives it states "due in 30 days or 18%".

Reply by Eatha/PA on 4/19/05 9:35am
Msg #32614

sue, I had plumbing work done last week (dontcha just love it?!), and the plumber wrote everything I needed done on a "work order," then wrote in estimates, date of completion, and had me sign it. That's a contract. I wouldn't have plumbing work done without it, it's the only protection I have in a "you said/I said" situation if the work isn't satisfactory or the invoice is higher or whatever.

Same when I take my car in for work: work requested, estimates, time to complete - sign here!

Reply by BrendaTX on 4/19/05 10:04am
Msg #32618

NOT giving legal advice, not saying I am right, just sharing info....

Also...not saying that I make sure I always have a contract, but general info I have relating to Small Claims Court in Texas states:

VENUE:
Suit should be filed in the county and precinct where one or more Defendant(s) reside. If the suit is based on a contract or tort, the Defendant may also be sued in the county where the contract was entered into or to be performed, or where the tort occurred.

Reply by sue on 4/19/05 10:32am
Msg #32619

Perhaps some day it will come back to bite me but the people I deal with don't work that way. My plumber has been my plumber for over 20 years - he comes and goes without me even being present most times. The last time he was at my house I called and said "water is squirting from a pipe in the basement, get over here now". He came over, cut a piece out, welded a new piece in and was gone. Got a bill a week later. Garage man is the same (except for when I have a car under warranty) - I take it in, he calls with what he says needs done and a general price and fixes it. Perhaps because I deal with small, local companies rather than larger businesses. As a matter of fact, I had electrical work done not too long ago for over $2,000 and he never wrote anything up - again, he's been my electrician for more years than I can count and I trust him - he's now going to do another large job and he gave me a verbal quote of 'not more than'.

Reply by Kevin Ahern on 4/19/05 5:05am
Msg #32580

I agree with Ted. I have been doing collections work for 20 years in Connecticut. In Connecticut we need either a written agreement or a statute which provides for interest, late fees and attorney's fees. However, there is always legal interest provided by statute which can be charged after a collection action has been concluded and judgment has entered.

Reply by Paul/MD on 4/19/05 7:30am
Msg #32589



I must agree with my friends in the collections field. I've been writing policy for collections call centers for number of years... unless yyou have a written contract allowing for specific 'late fees/charges' it is unacceptable.

Reply by Ted_MI on 4/19/05 7:49am
Msg #32593

Kevin,

At least in Michigan (as I recollect), the legal interest runs from the day that the collection suit is filed. With respect to attorney fees, the general American rule is that each side (each party) bears his or her own attorneys fees. However, there are certain attorney fee shifting statutes, as you have noted.

Reply by Kevin Ahern on 4/19/05 1:21pm
Msg #32670

You are right, Ted with respect to the American rule regarding attorney's fees.
Here the court will award them in contract collection cases if there is a written agreement that provides for the plaintiff's recovery of attorney's fees. There are certain statutory torts that also provide for their recovery such as Connecticut's unfair trade practices law. There is also the statutory ability to recovery of attorney's fee in certain real estate actions such as trying to discharge an invalid mortgage.

Reply by Mary Pierce on 4/19/05 1:45pm
Msg #32677

So my understanding is that if it is not agreed upon from the start then you cannot charge a finance charge/late fee. What if you have to start collection proceedings? I wanted to use a firm but wanted to build in a price for a finance charge/late fee that would cover my costs for collection.

Reply by Ted_MI on 4/19/05 9:02pm
Msg #32748

Mary,

From my perspective, the question is not whether you can do it or not (and by "it" I mean imposing some sort of finance charge after the fact - say after thirty days of non-payment); the question is whether: one, the ss or the title company will abide by it and secondly if you institute collection proceeedings in small claims court, whether such a course of action will stand up in court. I must admit I know nothing about Pennsylvania collections law or PA small claims court procedures. This is a very general perspective.

A woman poster in this thread was complaining about some ss's that would dock you say $25 bucks if you screw up in some fashion or another. Now is this something that you know going into the transaction? It sure is!! It is not applied after the fact, which is what you seem to want to do. Now going back to that woman's scenario - you have one of three choices: 1) don't screw up: secondly, appreciate that if you do screw up you're going to get docked (because by accepting the assignment you agreed to their terms); or thirdly, don't take the assignment. It's that simple.

Reply by Kevin/Ct on 4/20/05 6:54am
Msg #32793

In most states the court costs (filing fees, marshal's service of process) are awarded to you if you win the suit in addition to your money damages. In Connecticut as in many other states you do not need an attorney to argue your case in a small claims court. Beware ,however, if your state does not allow appeals from a small claims court judgment, the state may have a procedure to transfer the case to the regular docket. In Connecticut this is a favorite tactic of small claims defendants to delay entry of a judgment. Ostensibly they transfer the case to preserve their rights to appeal and a jury trial, and then most of them offer to settle or stipulate to judgment on the day of trial. If the case is transferred your state may allow you to recover a few hundred dollars for attorney's fees in addtion to court costs and damages, but you will need to review your state's position on this procedure. You will also have the right to statutory legal interest if you win the case provided the laws of your state allow it.

If you are concerned about not being able to charge interest and late charges, the alternative is to select a time period beyond which you will absolutely not wait for payment, and then file suit immediately. Do not waste your time with collection agencies. All that collection agencies can do is write threatening letters and make annoying telephone calls. They have no ability to enforce their collection efforts, and their efforts to collect are severely curtailed by the Fair Credit Collection Act where applicable.

Reply by Kevin/Ct on 4/20/05 7:04am
Msg #32795

Also meant to mention that you will need to find out if the delinquent client has entered your state to transact business in order to subject itself to the jurisdiction of the courts of your state. Otherwise you may have to rely on your state's long arm statute which may or may not
apply depending on the facts of the case. In which case you may need to sue the delinquent client in its native state. In some states it is not possible to sue an out of state entity in small claims court, and you would need to file in the appropriate level of court. Here in Connecticut it would be the Superior Court. If this is the case you may need to hire an attorney to represent you, and you will need to decide whether the amount of money owed to you justifies the cost of the suit.