Can collection agency fees be passed onto the customer?

Question

Our contracts state that clients will be responsible for any fees we incur to collect their late payments. If we were to hire a collection agency, would the collection agency be able to charge the client directly?

Or would we have to pay the collection agency, and then invoice the client for those fees, thus starting the cycle all over again?

And a good question is--we're legally allowed to pass those fees onto the client, correct?

Answer 1

You can assess late fees.

Answer 2

Yes, you can.  I have a small business, I use a collection agency in NY that's very successful at recoverying funds when my clients don't want to pay me.  As long as it's right in your contract with your client that they will be responsible for any collection fees, the collection agency can include that.

If you have any questions, instead of giving my e-mail address and getting spammed, check me from our website, www.jellybeanservices.com and e-mail me from there if you'd like to know who my collection agency is.  They're good! :-)