Rhode Island late fee law

12%per year

Attaches to the debt by operation of law when you agreed no rate, so it accrues before any lawsuit and can be stated on a demand letter.

12% per annum: interest 'in all business transactions where interest is secured or paid,' and post-judgment interest, is computed at $12 per $100 per year (12%) 'unless a different rate is expressly stipulated.' Text verified via secondary sources reproducing the statute (the official webserver.rilegislature.gov host was unreachable during research); verify current official text with counsel.

Parties may stipulate a different rate up to the usury cap in § 6-26-2: the greater of 21% per annum or 9 percentage points above the WSJ domestic prime rate. Notable B2B exemption: no rate limit on loans over $1,000,000 to a commercial entity (not secured by a mortgage on a borrower's principal residence) where the entity obtains a pro forma methods analysis from an RI-licensed CPA indicating the loan can be repaid. Usurious contracts are void in RI - a harsh remedy; verify with counsel.

public

Chapter 42-11.1 (Prompt Payment by Department of Administration) requires state agencies to pay contract bills within statutory periods (generally 30 working days) and to pay interest on late payments computed under § 42-11.1-6 (no interest owed if under $10). The specific interest rate figure was not verified - verify with counsel. No prompt-payment statute found for private projects.

No RI statute specifically regulating flat late fees on B2B invoices was found; agreed late fees are generally enforceable subject to liquidated-damages/penalty doctrine. Because RI's usury statute voids usurious contracts, aggressive combined late-fee-plus-interest terms carry elevated risk - verify with counsel.