District of Columbia late fee and interest rules for invoices
Here is what District of Columbia law says about late fees and interest on unpaid invoices, for business clients and consumers, with the statute and a link to the official source.
This is general information, not legal advice. Laws change and can apply differently to your situation, so check your state's current law or ask a lawyer before you charge a late fee, interest or a deposit. Last reviewed October 21, 2026.
District of Columbia late fee and interest limits
| Rule | District of Columbia |
|---|---|
| Business-to-business late fee or interest cap | Interest is capped at 24% a year with a written agreement. |
| Consumer cap | Interest is capped at 24% a year with a written agreement. |
| Legal interest rate when no rate was agreed | 6% a year. Judgments carry 70% of the IRS underpayment rate. |
| Statute | D.C. Code §§ 28-3301, 28-3302 |
| Last reviewed | October 21, 2026 |
Late fee wording to copy
Agree on the fee before the work starts and show it on every invoice.
- Payment is due within 30 days of the invoice date. Balances unpaid after the due date are charged interest of [rate]% per month.
- A late fee of $[amount] applies to any balance not paid by the due date.
- Past due balances accrue interest at [rate]% per year, or the highest rate allowed by law, whichever is lower.
Keep going
Late fee calculatorWork out the fee or interest on an overdue invoice.How to charge late feesHow to set a late fee and put it on your invoices.Late fee laws by stateEvery state in one table.
This is general information, not legal advice. Laws change and can apply differently to your situation, so check your state's current law or ask a lawyer before you charge a late fee, interest or a deposit. Last reviewed October 21, 2026.