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Late Fees

Discussion in 'Business Fundamentals' started by CMU07, Nov 5, 2009.

  1. CMU07

    CMU07 Member
    Messages: 68

    Did a quick search and didn't come up with much.
    The other day I was reading a thread about slow payers, USM I believe. Now I would assume they can't be charged a late fee, but with anything else you're (a general term for whoever may be complaining at the time) providing the contract, late fees are money makers. I have had very little probelm with late fee/NSF fees. It might be my clientele, but...
     
  2. TCLA

    TCLA 2000 Club Member
    Messages: 2,699

    You can charge a late fee once they go past their terms....doesn't mean you're going to collect it.

    Most will not pay a late fee.
     
  3. wizardsr

    wizardsr PlowSite.com Addict
    Messages: 1,551

    TCLA is spot on. Only thing I'll add is that most states have restrictions on late fees, last I checked in MN it amounts to 1.5% per month. Make sure you know what the laws are in your state.

    As TCLA said, most won't pay late fees anyway, especially larger companies and management companies. Only time I've been able to collect late fees is from a residential customer that kept blowing us off until I brought out the 'ol attorney's collection letters and court threats. Didn't care either as I dropped that customer like a hot potato. I don't push the issue with larger clients as I won't jeopardize a good money making account over a $20 late fee.
     
  4. Mark Oomkes

    Mark Oomkes PlowSite Fanatic
    Messages: 10,853

    True, but you are allowed to charge a rebilling fee. :D ;)

    I did\have collect(ed) some rebilling fees as well as late fees.

    I waived quite a few if they'd agree so just send the money they owed.
     
  5. buckwheat_la

    buckwheat_la 2000 Club Member
    Messages: 2,254

    it is important to have a latefee/interest charged fee, in all contracts, if for no other reason then you can collect more from them when you sue them, if they sign the contract and know they are going to be charged a interest fee for late payment, and they lose in court, the court is likely to give you the amount
     
  6. Bossman 92

    Bossman 92 PlowSite.com Addict
    Messages: 1,770

    I have/had a customer that only sends $50 or $100 at a time on a bill from 07/08. I have a $45 a month late charge on all invoices over 60 days late. The bill now is for a little over $1000, at this rate it will be 2 more years before it's paid off. :laughing:


    Bossman
     
  7. RedCastle

    RedCastle Junior Member
    Messages: 14

    i do the same thing over x amount of days past do you get charged x amount and it keeps adding up. I dropped a customer and the bill w/fees is close to $3600 most of it is in fees. So just might be laywer time...
     
  8. StratfordPusher

    StratfordPusher Senior Member
    Messages: 951

    Fees

    We charge 3% late fees, only folks that ***** and don't pay are the lawyers we service.... go figure...

    45 days late your gone..... never to be serviced again

    Only had to dump 2 customers in 8 years.... they learn fast

    Al