I agree with everyone else that this guy sounds like trouble. I have a termination for non-payment (which I have done) and huge fees for NSF cheques but I do not have a late fee. I do however require all my parents to hand me post-dated cheques every three months. I am normally handing out a newsletter based on the season every three months and put a reminder in for cheques. I send an email reminder the week before. If they are more than two days late, I require the next batch to be for six months or until the end of their contract. It has worked so far