Who pays for collection actions against the buyer?
That depends on the terms of your agreement with the buyer. This firm has always urged its clients to include the following language on all its invoices to shift the costs of collection onto the defaulting buyer: Buyer agrees to pay all costs of collection, including attorneys’ fees. Past due balances shall accrue interest at 1.5% per month (18% APR). This firm has led the charge to obtain PACA coverage of attorneys’ fees to reimburse you for the cost of enforcing a PACA trust claim. It is only fair that the buyer which caused these extra expenses should be the one that ultimately repays you for the outlays. Amazingly enough, other attorneys who practice in this field of law have actually fought against your right to recover these fees from the defaulting buyer. Because this firm represents sellers/creditors only, we are not caught in the middle of such conflicts of interest between what is good for a seller and what helps the defaulting buyer/debtor.
