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Unpaid amounts accrue finance charges at 1.5% per month compounded daily, or the highest rate permitted by applicable law if lower, and customers are required to reimburse DocuSign's collection costs including reasonable attorneys' fees.
This analysis describes what DocuSign's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
This provision establishes a specific finance charge rate of 1.5% per month compounded daily on unpaid balances, along with an obligation to reimburse collection costs including attorneys' fees. The compounding daily structure means the effective annual rate may exceed the stated monthly rate.
Under this clause, unpaid subscription or overage charges accrue finance charges at 1.5% per month compounded daily until paid, and customers are contractually required to reimburse DocuSign's costs of collection including attorneys' fees for any amounts not paid when due.
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"If we do not receive timely payment when due, you agree to pay all amounts due upon demand. Any amount not paid when due will be subject to finance charges equal to 1.5% of the unpaid balance per month or the highest rate permitted by applicable law, whichever is less, determined and compounded daily from the date due until the date paid. You agree to reimburse any costs or expenses (including, but not limited to, reasonable attorneys' fees) incurred by us to collect any amount that is not paid when due.Excerpt from DocuSign's Terms and Conditions
(1) REGULATORY LANDSCAPE: Finance charge provisions engage state usury laws and commercial interest rate statutes, which vary by jurisdiction. The attorneys' fees reimbursement obligation engages state fee-shifting statutes, which in some jurisdictions are limited or require reciprocal fee-shifting provisions. The FTC Act may be relevant where late fee terms are not adequately disclosed at point of purchase. (2) GOVERNANCE EXPOSURE: Medium. The 1.5% per month compounded daily rate is a standard commercial provision but the daily compounding structure increases the effective rate beyond a simple monthly calculation. The attorneys' fees reimbursement obligation creates potential significant financial exposure in the event of a collection dispute. (3) JURISDICTION FLAGS: Certain jurisdictions impose maximum interest rate caps on commercial late fees that may limit the 1.5% monthly rate. EU and UK jurisdictions may have statutory limits on contractual interest and fee-shifting provisions. Australian supplemental terms referenced in Section 11 may modify these provisions. (4) CONTRACT AND VENDOR IMPLICATIONS: Accounts payable teams should ensure payment processes are current to avoid triggering finance charges. Legal teams should assess whether the attorneys' fees reimbursement provision is reciprocal or one-directional, as the terms as excerpted do not disclose a reciprocal obligation. (5) COMPLIANCE CONSIDERATIONS: Finance teams should assess the effective annual rate of the 1.5% monthly compounding charge against applicable usury limits in operating jurisdictions. The unilateral attorneys' fees reimbursement obligation should be reviewed against internal indemnification policy limits.
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This provision establishes a specific finance charge rate of 1.5% per month compounded daily on unpaid balances, along with an obligation to reimburse collection costs including attorneys' fees. The compounding daily structure means the effective annual rate may exceed the stated monthly rate.
Under this clause, unpaid subscription or overage charges accrue finance charges at 1.5% per month compounded daily until paid, and customers are contractually required to reimburse DocuSign's costs of collection including attorneys' fees for any amounts not paid when due.
No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by DocuSign.