“It’s on our invoice!” Wondering if the printed language appearing on your invoice is enforceable if you go forward with a NY Debt Collection claim?
More and more creditors are including language on invoices anticipating non-payment by customers. But what happens when the customer defaults? Does the fact that the words appear on your invoice mean anything? Are the words enforceable when you go forward with NY Debt collection?
A common scenario
A customer fails to pay for the goods or client’s services requested by the customer.
The parties never exchanged any contract documents. There wasn’t any time for purchase orders, signed credit applications, or anything else.
The customer merely contacted the client, ordered a quantity of goods the client was selling, or requested services at an agreed price . A contract to sell and buy between the parties.
(Read more to understand what constitutes a valid contract). The client shipped the goods or dispatched the service and, once completed, sent an invoice.
We are contacted by the creditor to assist with debt collection efforts.
Client’s invoice
The client’s invoice includes text that states they are entitled to late fees of 1.5 % per month on balances unpaid after 30 days and that the customer agrees to pay all costs of collection, including attorney’s fees, if any.
Since the customer is delinquent in payment, the client is pursuing NY Debt Collection. And they want the debtor to pay for the costs of collection together with the additional interest.
After all “It’s on our invoice.”
Is the language on the invoice enforceable?
Just including the words on your invoice does not mean it’s enforceable.
Here’s how to know if the language on the invoice is enforceable:
Was the invoice signed by the customer? If the client signed the invoice? Then yes!
The additional writing on the invoice became additional terms of the sale. That is because, by signing the invoice, the client agreed to the additional terms of the agreement. The terms—agreeing to pay the cost of collection and additional interest and/or late fees—are enforceable.
If the invoice was not signed by the customer and there were no other agreements,. If the invoice was the only document that existed between the parties, then no, the additional writing on the invoice is not enforceable.
If there were other documents exchanged between the parties before or at the time of sale, you may be in luck! That is assuming the terms were offered and agreed to by both parties. If the documents include the same language or terms, then yes, they are enforceable. If other terms were included in earlier or later writings, those terms would apply, not the additional writing appearing on your invoices.
Wondering what you are entitled to collect in your NY Debt collection efforts and what to include on your invoices to maximize collection? Contact Jocelyn Nager jnager@ffgnesqs.com
