Yes, good point on this one Therrin.
Quote:
|
CUSTOMER agrees that credit will not be extended and payment is due when WORK is completed in a way that would satisfy a reasonable person. If payment is not received at that time, CUSTOMER agrees to pay monthly late fees totaling 10% of the delinquent principal amount.
|
I think just drop the reasonable person part totally.
Now charging monthly late fees of 10% on the outstanding amount would be illegal here. You see, there's laws here in this area, lots of them. There's caps on rates, fees and you'd have to satisfy some sort of credit code. Below is a link.
Fair Trading Qld - Credit - Payday lenders
Now I'll tell you something, I used to debt collect.
There's two types of debtors.
Those who cant pay and those who wont pay.
And if you dont know which of those two you are working for you deserve to lose your money.
In the remote case you happened to work for a cant pay (they just dont have the $'s) you think you are going to actually collect more than the original amount? Ya flamin dreaming.
Most will discount the debt, better 75% or 50% of something than 100% of nothing. This is a strategy for collections officers, albeit sometimes after a mile of fees added.
However, courts can toss out fees too, it can make you look like a thief and azzhole, frankly I wouldn't do it.
The current legal system here allows for court costs etc ... the extra's are not worth it, learn to judge your customers better.
The wont pays, you need to solve the problem or sue them. The less BS on your contract especially fees and charges the better for you and the more the judge will like you.
If I were to have anything I'd have just this.
CUSTOMER agrees that credit will not be extended and payment is due immediately or prior to completion