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  • #16
    I have a question if the customer dose not pay by the the time you allow the can you keep add on late fees month after month?
    The reason I ask is that a person that lives down the block from one of my customers stop me and ask if I wood cut there lawn and start a monthly contract. So I cut the lawn and got paid cash on the spot. We back a second time and cut again. Later in the week I went back and knock on the door and the son said that his dad was out of town. He will be back on Wed. So like a fool I cut a again and went back on Wed. The some gave me a false name and number? So I just learned a leason.


    • #17
      When it comes to a very low bill, such as Case #2 in which her bill was only $27.00, I am usually pretty lenient. *For example, if they pay the bill by the end of the week, I may waive the late fees. *Or I may tell them, "Hey, another due date is coming up again, and I would hate to charge you another late fee, can you pay it in the next week, to avoid another late fee." *

      Like I said, I usually try to work really hard with customers to get them to pay. *But ones that abuse my "friendly" bill collecting procedure feel the wrath. *

      This is how I usually handle the situation when it comes to a customer though:

      1. *The first invoice is sent out with a due date on it.

      2. *If the customer is new, and no payment has been received 3 to 5 days past the due date then I will call them to remind them, and also send them the original bill again with a past due stamp on it.

      3. *If after that time a week has passed, and still no payment, then I send out a late fee with the invoice. *They then have a certain amount of time to pay that late fee with the original service provided by a certain due date.

      4. *If they still fail to do that, I usually no longer make phone calls, I start to send letters, and also don't hesitate to send out late fees 1 day past the due date.

      5. Now recently, if the bill is over 3 months past due, I stop charging late fees, notify the customer that I am sending them to the credit bureau, and let the credit bureau handle it.

      Also, if it is a new customer, and they are over a month late on their first bill, but after that month they still pay it, I will no longer provide services to them. *They are in a nutshell cut off. *

      Also a word of advice, if a new customer asks for multiple services to be conducted, for example fertilizing and grass seeding. *First do the fertilization and send out the bill the next day. *Then wait before you provide the grass seeding to see whether they are going to pay the first bill. *It's better to test the waters first with a new customer, compared to going full tilt and losing your @ss on services that you provided to them.


      • #18
        I didn't realize you had to pay to put someone into the credit bureau. We have 4 customers who are past due paying us. 1 owes us $95.00, the other owes us $75.00. They have owed it since July & August. These 2 moved and not sure where they are. We were thinking about going to our County office to put a lien on their property but we found out they were renters. So, we lost that money. The other 2 are small amounts ($25.00) owed since end of September. I guess I am too lenient. I haven't charged a late fee yet. I guess I need to though. Do you charge a flat fee or a percentage for the late fee? How often can you add it to their bill? I mean is there any law on adding late fees?


        • #19
          I have spoken to approx 4 attorneys regarding late fees, and 50% of them say that you can only charge a set amount, such as a percentage, while others say that you can charge whatever you want for a late fee.


          • #20
            So do you think if I charge let's say a $5.00 late fee this month and they don't pay by next month, I can add another $5.00 each month they don't pay?
            We also have a couple of customers who have said, I 'll put the check in the mail tomorrow but they never do. It gets to be a hassle after awhile. I guess you can only be nice for so long.....


            • #21
              Yup. Nothing wrong with that. I charge a $20 late fee every 30 days the bill is past due.


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