Common use of Late Payments and Collection Costs Clause in Contracts

Late Payments and Collection Costs. There will be a processing charge of up to $20.00 or whatever fee is allowable by law for any returned check or for any rejected credit card charge or for any rejected automatic bank account debit. If I do not make a payment within 5 business days of its due date, I must pay you, in addition to the payment, a late charge of 15% of the late monthly payment (but at least $5.00 per month). I will pay you your collection costs, including charges for collection letters (not to exceed $5.00 per letter), collection phone calls (not to exceed $6.00 per call), collection agency fee (not to exceed $50.00 per placement), collection agency charge (an amount not to exceed 30% of the amount paid by you to the collection agency), pre-suit notification legal letter fee (not to exceed $20.00 per letter), and pre-litigation administrative preparation fee (not to exceed $200.00) whenever such costs are incurred. I will also pay your costs and expenses in the event that you obtain a judicial ruling or decision in your favor regarding my liability under the Lease Agreement, including reasonable Attorneys’ fees, witness travel expenses, court costs, and service of process fees.