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MDLaw
MDLaw, Attorney
Category: Business Law
Satisfied Customers: 6133
Experience:  Experience in business law, contract law and related matters.
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, i have a small business, a gas station and

Customer Question

JA: Thanks. Can you give me any more details about your issue?
Customer: i have a small business, a gas station and convenience store in Chula Vista California and Pepsi is charging me a 25% fee on our past due balance. their payment portal wasn't working and i tried to get help from them several times and they tried to reset my password ***** such and i even asked them to hold on the line while I confirmed it was working and after several minutes they said they had to go but that it would work and it didnt
JA: OK got it. Last thing — Business Lawyers generally expect a deposit of about $18 to help with your type of question (you only pay if satisfied). Now I'm going to take you to a page to place a secure deposit with JustAnswer. Don't worry, this chat is saved. After that, we will finish helping you.
Submitted: 1 year ago.
Category: Business Law
Expert:  MDLaw replied 1 year ago.

Hello and thank you for using the Just Answer website. I look forward to assisting you. What is your legal question , please? What information are you seeking?

Customer: replied 1 year ago.
is it legal for Pepsi to charge a 25% fee on outstanding invoice when we are less than 60 days past due.
Expert:  MDLaw replied 1 year ago.

Under CA law, there is no monetary cap on the service charge/late fee charged by a creditor to a business. However, the law does require that the amount charged be reasonably related to the actual damages caused by the creditor due to the customer's nonpayment. A CA court has in the past found that 18% is not excessive if the creditor can show that it is reasonable. In other words, it comes down to whether or not a court finds it reasonable. It appears that you are also concerned about the 60 days past due. That is a contractual matter and you will need to look to your contract to see what it says about when payment is considered past due. Often, a company will have 30 days or 60 days as being late. 30 days is more common.

Please let me know if this has answered your question.

Customer: replied 1 year ago.
is that 18% annual or 18% of outstanding balance?
Expert:  MDLaw replied 1 year ago.

The example I gave was an APR of 18%.

Expert:  MDLaw replied 1 year ago.

Has your question been answer or do you need any additional information from me. Please let me know. Thank you.