Document background
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.
