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View Full Version : late fee is a beautiful thing


bobbygedd
03-26-2002, 12:37 PM
thanks for all the advice on getting customers to pay, and on time. since ive added a late fee in my contracts, i have not had even one person a day late on paying their bill. thanks again

TOSLC
03-26-2002, 01:03 PM
I've got a late fee, and I still have one account late every month! To make matters worse it's my aunt. I raised her rate by 20% this year, so hopefully that will encourage her to pay on time. I charge a 10% late fee,on the amount that's late, so the amount for the late fee will be more!

Krimick
03-26-2002, 01:24 PM
Man, you charge late fees to your Aunt ! ;) I think I know whose not going to be named in the will.... ;)

65hoss
03-26-2002, 01:37 PM
better get it now, she's definately not going to include you.

rodfather
03-26-2002, 03:19 PM
Raised her rate by 20%! You're a helluva nephew. Guess who she won't be inviting over for sunday dinner. LOL

bobbygedd
03-26-2002, 03:50 PM
on behalf of all the sweet little old aunts everywhere, shame on you! my aunt asked me to cut her lawn one time cus hubby was sick, i didnt charge a nickle, and i ran when she tried to force money on me, tisk tisk. guess i lost my title as "the most heartless lawn man"

mowerman90
03-26-2002, 04:44 PM
TOSLC

You go guy!!!! Tell'm you're in business to make money, not friends.

SLS
03-26-2002, 05:33 PM
Hey! Give TOSLC a chance to defend himself.

For all we know this may be a case of the classic "cranky, grumpy, mean 'ol aunt from hell" he is dealing with here.

:D

gslam88
03-27-2002, 01:20 AM
Well I guess there goes any shot of an inheritance for you then,


But be careful on the wording on your late fee, remember that if you not a financial institution you can not charges fees.... hopefully you don't find out the hard way in court.... as some others have...... just my .02. ......... .




:blob3: :blob1: :blob4:

bobbygedd
03-27-2002, 01:31 AM
gslam, i was waiting for someone to say that. and, the wording is, "if your payment is not recieved by the last day of the month, it will be considered late, and a 3% late fee may be applied...." now, as long as i never actually charge the late fee, im ok. it seems though just having it there helps.

gslam88
03-27-2002, 01:49 AM
Bobby,


Just so you know.... and if you don't enforce the late charge then that would not be an issue,


but the big biz cases are

Local firm brings class action suit against Ford
from http://louisville.bizjournals.com/louisville/stories/2000/03/13/story1.html

Cable company pays $5 million for charging late fees. A cable TV. company that charged customers a $5.00 late fee must pay $5.4 million in damages plus interest in a class action suit

from http://legalsurvival.com/topics/NewsletterLAS/2.5debt.htm


but the threat is what prevents them from not paying and it works....

above is just so you know

:rolleyes:

AielLandscaping
03-27-2002, 10:36 AM
i'd never heard that you couldn't charge a late fee.. but then again i just assumed that it was ok.. i charge a late fee and i guess i run the risk of a law suit.. but i wonder if my agreement with the customer makes it ok.. here is my wording for my whole agreement tell me what you think.


All materials are to be as specified. All work to be completed in a workmanlike manner according to standard practices. The proceeding specifications are based on industry averages, and do not reflect actual times or costs. Actual costs will be based on 33.4 cents per man minute worked. All elements of this agreement are contingent upon strikes, accidents, or delays beyond our control. The estimate does not include material prices, or additional labor which may be required should unforeseen problems arise after work has started. We reserve the right to change work date(s) and or time(s) due to weather, personal injury, business needs, or any other unforeseen circumstances out of our control. Note: The estimate may be withdrawn by us if not accepted within 7 days.
You the buyer, may cancel this recurring transaction at any time prior to 24 hours before the next appointed work time. Cancellation must be done in writing with an exit interview form provided by Aiel Landscaping. Payment is to be made as follows: An invoice will be mailed to the above billing address on the first day of each month once work has commenced, unless there is a balance of zero ($0.00), in which case an invoice will not be mailed. Payment is due postmarked on or before the fifteenth day of the same month the invoice was sent to the above billing address. Payments not received or postmarked by the fifteenth day of the same month the invoice was sent will incur a cumulative 7.5% late charge, or a flat $5.00 late charge, which ever is greater, each billing cycle. Payment must be made with either a check or money order. A returned check will result in a $25.00 penalty fee. After a check has been returned payment must be made only by money order. If an invoice becomes 60 days delinquint, services will be stopped until payment is received. Future services of an account that has become delinquent will only be available if the balance is paid in advance. If an invoice becomes 90 days delinquent, the account will be turned over to a collection agency, and services will be terminated indefinitely.


Acceptance of Estimate: The above prices, terms, and conditions are satisfactory and are hereby accepted. You are authorized to do the work as specified. Payment will be made as outlined above.

Signature:________________________ Date:_________
Print:__________________________________________

I wrote all this myself so i don't know how well it holds up..