Definition - What does Nuisance Fees mean?
Nuisance fees are monies charged by companies for persons who fail to use their services in the required manner. A person can be charged a nuisance fee in order to discourage a certain action or to encourage another action. However, it is most commonly imposed when a person does not comply with the terms and conditions of a contract or agreement. An example of this is a late filing fee which encourages a person to pay on time, rather than risk paying a penalty paying late.
Justipedia explains Nuisance Fees
Nuisance fees are charged by companies who have a set way and time frame for the delivery of its services, and who want its customers and clients to adhere to these guidelines. In order to be considered valid, nuisance fees must be outlined in a contract or agreement, and must be agreed to by the person to whom it would be imposed.
Nuisance fees can also be progressive based on certain circumstances. For example, where a bill remains unpaid for a set length of time, the nuisance fee would get progressively higher the later the payment is made to deter any further late payment. While nuisance fees are usually nominal in nature, laws generally do not prohibit the maximum fee that can be charged.