Surcharge On Accounts

Press, Volume CVI, Issue 31236, 7 December 1966, Page 20

Surcharge On Accounts

Sir, —As the owner of a small business, I am perturbed by the growing practice of firms’ adding to their accounts a percentage under “plusage” or “surcharge.” The amount shown is then deductible if the account is paid by the 20th of the following month. As I pay my accounts regularly this does not worry me unduly. However, an account I received today does. This account is for work done in November, the current month. A statement has been received already, which includes a surcharge of 5 per cent of the total amount owing. A note attached to the statement indicates that a discount (the amount of the surcharge) will be allowed if the account is paid by the end of the current month. What is the legal position regarding this surcharge? This account would normally be paid on December 20. Has this firm any right to demand a 5 per cent surcharge before the account is due?—Yours, etc., FAIR GO PLEASE. November 21, 1966.

[The district officer of the Department of Industries and Commerce (Mr A. V. Church) replies: “The department is not aware of any legal basis for either charging or demanding payment of a surcharge such as that referred to by your correspondent.”]