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Late Payment Policy
My original contract stated that I would terminate if I was paid late. I have decided to change this to instead charge a fee per day for late payment and reserve the right to terminate if a client is late with a payment.
My late payment fee is high - it's the equivalent of one day of fees. I have one client (the one who Often pays me late) who is hesitant about signing and suggested that what I am enforcing is illegal. He said something about how the interest per day can only be a certain amount. I am wondering if anyone else has any knowledge about a law like this?
I have researched his concern and have not found evidence to support his claim.
My gut is telling me not to trust this guy (there were a couple of other issues before this) and I am very close to asking him to find another provider. The most issue was that he brought his child into my house 10 minutes before I opened, slipped on my freshly mopped floor and said something like, "I sure hope that heals." It made me kind of nervous that he might be the kind of person to sue me.
Anyway, the slipping isn't the issue but I wanted to give a bit of background about why this guy's argument makes me nervous.
I really love having his child here and I would like to continue to continue to offer my services to this family.
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A client talking legalities would make me nervous too...especially with the slipping incident. Hope someone has an answer for you.
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Euphoric !
IMO you can charge whatever you want for a late fee. It isn't a loan and you are an independent business. I do think your charge is high, but if he signed your contract and therefore he is bound by your policies.
As far as slipping on your floor, I firstly would not have the door unlocked for a client to come in early, but if you do, I would post a sign on your door stating the floor is wet and for them to be cautious.
Lastly, I don't like clients who give threats, no matter if presented in a joking or veiled manner. Watch this guy.
Last edited by mimi; 09-16-2013 at 09:24 AM.
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Thanks for the feedback. I hope i find an answer too and that thi queasiness in my stomach goes away. Mimi - he signed the original contract stating that I reserve the right to terminate if a client is late with a scheduled payment. The late payment fee is a new addition to my contract.
All of my other clients signed it without issue - they also pay me on time.
The worst case scenario is that I could always give him the option of adhering to the terms of the original contract and I could terminate the next time he is late with a payment.
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What I have in my contract is a 25$ late payment fee ( flat rate, not per day). After two late payments they are terminated. There is nothing worse than running around for your paycheck all the time. No one else with a regular job would find this acceptable. Why should we? I had a client like this and every week it was " oops, I forgot the check for today is it ok if I bring it monday?" Ugh. I used to be laid back about it but then it became a weekly thing. I am so glad they are gone.
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Thanks, Fun. Have you had to enforce it and terminate?
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Leave it the way it is and the next time he is late hand him a term notice.... Or better yet say goodbye now cause yes he is the type to sue you. Also keep your door locked till opening time and not a minute before.
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Starting to feel at home...
I would feel SUPER uncomfortable having a client who questioned the legalities of anything I had.... the slipping on the floor comment would have had me generating a term letter ASAP....
People who sue others are the only ones who immediately think to make comments like that. If I had slipped, I certainly would not have made that comment. (???)
As far as late fees go, I have a 1,2 3 policy. My late fee is $25 per calendar day. The 3rd time the family is late, they are termed. I have a hard time working with a family who has such little respect for me and my business and paying late is totally disrespectful.
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The Following 2 Users Say Thank You to KellyP For This Useful Post:
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I agree with crayola... Leave his the way it is and term him next time it happens. I'd hope it's soon, honestly he sounds like trouble to me.
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First door stays locked till you are "open" at which point the floor is dry, the sharp things and cleaners are up and you are ready to receive kids. If he has to stand on porch till then too bad - remind him at least he didn't slip.
I think I know what he is referring to but not sure exactly what it applies to. There are limits that can be charged on loans - to prevent people from profiting on the backs of the less fortunate. No more charging outrages percentages and the limits are pretty much what the banks charge. Doubt this applies to fees as there is the option available to not incur the fees by not breaching the rules of the contract. I would probably just through that kind of a comment back at him saying well if you don't want to pay the fees then don't commit the crime.
Until he signs the new contract or you terminate the old one, then the old one stays in effect. So it sounds like if he doesn't sign the new one with the option of paying extra to stay if he pays late he is electing to be terminated if he pays late so your choice is to follow through and let him go.
Then if he comes grovelling back decide how you want to proceed. He sounds like he thinks he controls the world and maybe he does where he works but he needs to know he doesn't in the rest of life.
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