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Dwayne B.
Dwayne B., Lawyer
Category: Consumer Protection Law
Satisfied Customers: 32744
Experience:  Practicing for over 20 years and handled many cases and trials for consumers.
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I have used a company to manufacture several lines of

Customer Question

I have used a company to manufacture several lines of clothing . the most recent batch has been very poorly made and is unacceptable. I have advised them of this and requested they rectify the problem. They do not wish to and refuse to negotiate with me to resolve the issue.
Adding tot he problem is the fact that they have other items of mine which are fully paid for which they are refusing to give me. They are in fact holding my stock to ransom.
My most recent attempt to resolve this was a failure and to add to the problem they are now charging me a $25 a day late fee on the sum in question - around $500.00.
Are they allowed to charge me a late fee as it's no where in there terms of business and even so - $25 per day is excessive to say the least.
I think this is extortion and need to know how best to proceed.
Submitted: 1 year ago.
Category: Consumer Protection Law
Expert:  Dwayne B. replied 1 year ago.

Hello and thank you for contacting us. This is Dwayne B. and I’m an expert here and looking forward to assisting you today. If at any point any of my answers aren’t clear please don’t hesitate to ask for clarification. Also, I can only answer the questions you specifically ask and based on the facts that you give so please be sure that you ask the questions you want to ask and provide all necessary facts. Further, if you get a message asking if you want to do additional services like a telephone call that message is automatically generated by the website and is not sent from me. I, like most of the experts in the Legal categories, do not do telephone calls due to issues with State Bar rules and other concerns.

Is this a US company or foreign? Where are they located?

Customer: replied 1 year ago.
Hi - This is a US company registered in the State of Florida.
Expert:  Dwayne B. replied 1 year ago.

Unfortunately, as I mentioned above, I and most of the other experts in the Legal categories don't do telephone calls due to issues with the state bar organizations. However, we should be able to handle this situation in this chat format.

Customer: replied 1 year ago.
Ok, can you answer my enquiry as to whether they can charge me $25 per day "late Fee" on an invoice that is under dispute and they wont discuss with me. Add to that they are holding some of my product which is fully paid for as "collateral".
Expert:  Dwayne B. replied 1 year ago.

Generally, late charges can be assessed but there are limitations. I haven't read the Florida Code for a while but it used to be up to 18% a year if there was no specified amount.

Expert:  Dwayne B. replied 1 year ago.

They are absolutely not allowed to hold onto your materials you have already paid for as "collateral" unless you agreed to that in writing.

Expert:  Dwayne B. replied 1 year ago.

No law, statutory or otherwise, allows for that.

Expert:  Dwayne B. replied 1 year ago.

At this point the best solution is to hire a local lawyer to send them a demand letter explaining why what they are doing is wrong, what the results will be, what damages they are facing, etc.

Customer: replied 1 year ago.
you think $25 per day is not acceptable under Florda Law? How about I give them a check to stop the closk and then cancel payment of the check until they will sit down with me and discuss my grievance over the unacepatble product they are trying to pass off on me.?
Expert:  Dwayne B. replied 1 year ago.

It sounds awful high even if they've raised the limit over the years.

I think you're better turning it over to a lawyer at this point than trying to continue handling it yourself. The lawyer can demand that they pay his fees as well but what usually happens if the client negotiates and gets to a hard "no" then bringing the lawyer in doesn't change it and you just have to file the lawsuit whereas if you bring the lawyer in early the lawyer can usually threaten and get it resolved. In addition, any letters or correspondence the lawyer sends will be phrased in such a way that it can be used as evidence later.

Customer: replied 1 year ago.
I will have to turn off the clock as $25 a day is already up to over $700 on a $500 bill. In the meantime my other product is trapped and who knows how long it will take to resolve this legally. Not a happy situation.
Expert:  Dwayne B. replied 1 year ago.

No, it's not a good situation. I think there is a reasonable chance you can get all of the "late charges" back if they didn't give you any warning that you were going to be charged and there are problems with the items and, in addition, they are holding other items which is absolutely forbidden.

Expert:  Dwayne B. replied 1 year ago.

Even if the judge allows them to charge a late fee he is most likely going to offset it by charging them a fee for withholding your items and call it a wash.

Customer: replied 1 year ago.
OK, will leave it at that and see local attorney to write the a heavy duty letter. Thanks for your time.
Expert:  Dwayne B. replied 1 year ago.

You're very welcome. This should work. It works 90%+ of the time.

If your question has been answered completely then I'd offer my best wishes to you and ask that you please not forget to leave a Positive Rating so I receive credit for my work.

Of course, please feel free to ask any follow up questions in this thread.

Expert:  Dwayne B. replied 1 year ago.

If your question has been answered completely then I'd offer my best wishes to you and ask that you please not forget to leave a Positive Rating so I receive credit for my work.

Of course, please feel free to ask any follow up questions in this thread.