Am I being petty?

[dwyman]

If a customer makes a late payment I charge a late fee as most of you probably do. I have a 2.00 minimum with 1.5% monthly. I give them 15 days from invoice date and a 5 day grace period past that. I had 2 customers in the last two months complain because I charged late fees. Both were aeration customers (must be something about plugging someone that gets them upset).

The first cust. was over a month late on payment and I had sent her a bill for the late payment charge and she didn't include the 2.00 with her payment. I know she got the second invoice before sending payment because I didn't even receive the check until 2 weeks after sending her that 2nd bill. So I sent her the 3rd invoice for the whopping 2.00 (I know what you're thinking, but it was principle because she was trying to get away w/o paying 2.00 when she was obviously late and knew it) Then she sent me a note back saying: "$2.00, give me a break. You've just wasted your time and mine."
I was thinking I wouldn't waste your time if you'd just send your bill in on time. What do you think. By the way I got the $2.00 and saved my house from being foreclosed.

The second customer was two weeks late so I sent out the 2nd invoice with the late fee. She paid it but also wrote a note saying: "This was paid on time. I do not appreciate being sent a bill for a late charge!!" and in parenthesis: not good for business. I know for a fact that she was late. Not 2 days late but 14 days late. So I'm thinking if you do not appreciate being sent a bill for a late charge and you paid on time, why did you send me the late fee? Why not call and tell me or send no money and write a note. What do ya think?


My main question is: am i being petty for sending out a bill for late fees if they are late? Even if it is only 2.00. It is not the money, because let's face it, you cant' even get a gallon of gas for a measley 2.00.

Second question: for that 2nd customer, I was thinking of sending back her 2.00 with a note apologizing for the oversight (even though I know she was late) and possibly a good will gesture like 1 free fert app or something like that. It makes me cringe even apologizing when I know she should apologize but I'm looking out for the sake of the business and not my ego. Any comments would be appreciated.

[Stephen M.]

If I'm even 1 day late with my suppliers, I get a late fee, and I pay it!! So, no, you are not being petty. You are following good business practice.

Ask them if they pay other creditors late, and if they try to stiff them as well? My hunch is that it goes to "in-house collections and onto their credit histories.

Too many people think that they can stiff the lco or landscaper for whatever reason. I don't know the percedures to report credit offenders except thru collection agencies.

[Woody]

Dwyman: You're not being petty, but your late charge is.

Straight from my Service Agreement, right there on the front page......

"Bills paid after the 15 day period will be assessed a late fee of 15% of the total bill due. Bills not paid within 30 days will be assessed another 10%, for a total of 25% on the 30th day. An additional 10% per month will be assessed to all delinquent accounts. If, after 60 days, the bill is still unpaid, it will be taken to small claims court in ______ County, Ohio. All legal fees and all court fees will be added to the total bill, along with all costs to my company, to recover the monies due."

Of course, "my company" is where my ACTUAL company name is, and the actual county is there as well. The next paragraph tells people how to PAY LATE, BUT AVOID LATE FEES! Basically, all I ask them to do is to call me, and let me know that payment will be late. But, at the end of that paragraph, it states... "Payment is still due within 30 days to avoid service interruption. This is a courtesy we extend to our customers, but abuse of it will lead to termination!" I give this option, because stuff happens to all of us. I am not so rigid to the point of being inhumane. If someone needs a little extra time, I can handle it. But, in the examples you cite, it sounds to me like people are just taking advantage of you. I draw the line REAL QUICK with that kind of behaviour.

The one who sent the "give me a break" bullcrap.... I would send her back a note stating that it would be a shame to hire a collections agency, and ruin her credit rating, because she refuses to play by the rules. She, my friend, is a first class b!tch, and has probably gone through life getting away with stuff because of the size of her appendages, or her looks. I think I would have showed up in person to collect that one. They always seem to find money when you show up in person. Also, it seems she has some sort of an "agenda". Like maybe she likes to get into p!ssing contests with men, because it makes her feel like she is "powerful". Whatever the case, I personally would NEVER do business with her. NEVER. The other one, if you feel compelled to give back the late fee, do so, but don't go giving away some fertilizer app with it!!! You, for some reason, feel guilty for playing by the rules, and you shouldn't. Those women sensed that in you, and that is the whole reason they pulled these stunts. BUSINESS IS BUSINESS! You HAVE to be a hard-nosed pr!ck!!! Or, just give all your money and equipment away now, and go look for another job.

Me? They pay me. Or I get real nasty. I like Seascape's idea of showing up where they work to collect. Or "accidentally" sending the bill to a neighbor. There's a lot of things you can do to coerce them into paying up. Be creative.

Woody

[Seascape]

The one that sent the silly note,,, id send her another bill,, a duplicate. Waste more of her time chasing a check copy down to proove she payed.,,, or,,, dont cash the check and send it,, say you never received it when she calls. Than the next day go cash the check. When she calls a week later biitching,,, tell her youll send a $2.00 refund,, than 3 weeks later id send her an invoice for $4 marked paid in full. Tell her your billing system charged her another late fee,, theres nothing you can do about it,, you payed you late fee late maam.

[Scaper-S2k]

Personally, I would make them due in 30 days before deciding to charge the late fee.

But that's just me.

I could be wrong, but I think there is a maximum % you can legally charge, and I think it is over the course of a year.

[Woody]

I think you are correct, Scaper. I think I even read somewhere about the maximum that be charged for late payment. If you read something in your travels, let me know. I'm not about to change the wording on my service agreement just yet though. It kind of "puts the fear into them", if you know what I mean. And it sure beats the hell out of me dragging yet another 50 pound bag of rock salt out on a rainy night.

Woody

[dwyman]

The one that sent the silly note,,, id send her another bill,, a duplicate. Waste more of her time chasing a check copy down to proove she payed.,,, or,,, dont cash the check and send it,, say you never received it when she calls. Than the next day go cash the check. When she calls a week later biitching,,, tell her youll send a $2.00 refund,, than 3 weeks later id send her an invoice for $4 marked paid in full. Tell her your billing system charged her another late fee,, theres nothing you can do about it,, you payed you late fee late maam.

LOL--I might just try that.


Anyways, there is a maximum percentage I can charge in Nebraska and that's 18% annually or 1.5% monthly. That is what I charge. It may be different in other states. I can't remember the department I got that info from but I think it was the commerce dept.