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Late Fee Notice Template for Canada

A Late Fee Notice is a formal document used in Canadian business operations to notify customers of overdue payments and associated late fees. The document complies with Canadian federal and provincial regulations regarding debt collection and interest charges, including the Interest Act and relevant Consumer Protection Acts. It serves as an official communication detailing the original amount owed, the calculation of late fees, total amount due, and payment instructions. The notice maintains professional standards while ensuring legal compliance with Canadian debt collection practices and consumer protection laws.

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What is a Late Fee Notice?

The Late Fee Notice is a crucial business document used when payments from customers or clients become overdue. It serves as a formal reminder and notification of additional charges incurred due to late payment. In the Canadian jurisdiction, this document must comply with federal legislation such as the Interest Act and Criminal Code provisions regarding interest rates, as well as provincial consumer protection laws and debt collection regulations. The notice typically includes details of the original invoice, calculation of late fees, total amount due, and payment instructions. It is an essential tool for accounts receivable management and maintaining cash flow while ensuring compliance with Canadian legal requirements for debt collection and consumer protection.

What sections should be included in a Late Fee Notice?

1. Header Information: Company letterhead, date, recipient's name and address, reference/account number

2. Subject Line: Clear indication that this is a Late Fee Notice

3. Outstanding Payment Details: Information about the original invoice, due date, and amount

4. Late Fee Calculation: Breakdown of the late fee amount and how it was calculated

5. Total Amount Due: Clear statement of the total amount now owed, including original amount and late fees

6. Payment Instructions: How and where to make the payment, including accepted payment methods

7. Due Date: Clear deadline for payment of the outstanding amount including late fees

8. Contact Information: Details of who to contact with questions or concerns

What sections are optional to include in a Late Fee Notice?

1. Payment Plan Options: Include when the business is willing to offer payment arrangements for large amounts

2. Previous Communications Reference: Include when this is not the first notice sent regarding the late payment

3. Legal Warning: Include when the account is severely overdue and legal action is being considered

4. Service Interruption Notice: Include when applicable for ongoing services that may be suspended due to non-payment

5. Good Faith Statement: Include for valued customers to maintain positive business relationships

What schedules should be included in a Late Fee Notice?

1. Payment History Statement: Detailed record of previous payments and current outstanding balance

2. Original Invoice Copy: Copy of the original invoice being referenced

3. Late Fee Policy: Company's standard late fee policy and calculation method

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Canada

Document Type

Notice of Rent Due

Cost

Free to use

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