UPS is hitting customers with late fees and collection threats as they contest tariff bills

UPS is currently charging customers late payment fees and issuing collection threats related to contested tariff bills on international shipments, a situation that has intensified since changes to U.S. tariff and customs rules in 2025. Many consumers disputing the accuracy or fairness of their tariff invoices are encountering aggressive follow-up from UPS, which includes demands for late fees and warnings about possible referral to collections if payment is not made promptly.​

Why UPS Is Charging Late Fees

UPS has increased its late payment fees for all types of invoices—including those related to tariffs and customs charges—to 9.9% of the past-due balance, up from 8% at the start of 2025. Customers now only have seven days from invoice date (including weekends) to pay before late fees are assessed, making it challenging for those contesting disputed charges to avoid extra costs.​

Impact of Tariff Bill Disputes

Many customers report surprise bills due to newly imposed tariffs after the U.S. ended the de minimis exemption for imports valued under $800. Shoppers are sometimes billed steep charges, such as a $769 invoice for a used clothing order under $200, or additional fees—such as brokerage or abandonment charges—even when they try to dispute inaccuracies.​

Collection Threats and Escalation

If payment for tariff bills is delayed, UPS may refer cases to collections agencies, further increasing pressure on customers. Even while a dispute is ongoing, customers can be hit with growing financial penalties and warnings to pay immediately or face collection action.​

Practical Considerations for Customers

• Disputing bills with UPS does not pause late fee accrual, meaning financial penalties can stack up while an investigation is ongoing.​

• Payment terms for UPS invoices—including tariff-related charges—are now extremely short, so acting quickly is essential to avoid additional costs.​

• UPS is incentivizing quicker payment via ACH (bank transfer) rather than manual methods, which may help avoid certain additional fees.​

UPS’s practices appear to be causing widespread consumer frustration and financial stress amid tariff changes, with many customers reporting unexpected charges, brief payment windows, and aggressive collections procedures even during active disputes.​