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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 110499
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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I provide consulting services and focus on smaller businesses

Resolved Question:

I provide consulting services and focus on smaller businesses with a great product or service but need help getting it to the right audiences. One client has made partial payments to me for a year and we agreed to "bank" the remainder. The client has now "indefinitely suspended" our agreement and has made no indication as to how he will the remaining balance due ($28000). There was no mention of late fees or penalties in the original consulting services agreemnt. I have tried to get a written gameplan for how he intends to pay the remaining balance but he has not responded. Can I charge interest? What recourse do I havce?
Submitted: 8 years ago.
Category: Legal
Expert:  Law Educator, Esq. replied 8 years ago.
You can charge late fees and interest in accordance with your agreement, since the agreement is silent then there would be a dispute as to whether or not you can charge them and it would be based upon the customary practice in your industry. Colorado currently has one of the higher general usury rates in the country -- for non-consumer loans. The general usury rate in this regard (for non-consumer loans) is set at 45% per annum. The usury rate established for consumer or personal loans is set at 12% in Colorado at the present time. I would say this is not a consumer loan, so you could get away with the higher rate, it is a fee for services rendered.

Your recourse would be to sue the client for recovery of the fees.

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Customer: replied 8 years ago.

OK, so I can charge interest, but it would likely be disputed since it wasn't mentioned in the original agreement. Doesn't look too positive unless CLolorado has specific laws on this. That is what I trying to find out.


Expert:  Law Educator, Esq. replied 8 years ago.
There are no specific laws, interest comes under the Usury law and you can charge up to 45% per annum. Interest and late fees is not covered by the law any further which is why I said it is contractual in nature. I would still charge it since the contract does not say you would not charge interest, especially when he is the one breaching the contract by failing to pay.

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