CM CLUB - Advice about non payment (I´m on holiday).................

[looneytune]

Hiya

So annoyed that I was all organised with invoices in advance of my holiday and only 1 family paid me right and thát´s because they have a standing order of the same amount each month. The other family paid me nearly 600 pounds when they didn´t owe anything (causing us to think we had more spending money on hols than we did - lucky I decided to not go mad as I felt we shouldn´t have that much in the bank), the other family haven´t paid me.

I left on 25th June and sent invoices out more than a week ahead of 1st July (pay day). The person who pays by cheque knows they have to pay the cheque a week before 1st of the month in order for it to clear in time for 1st. Because I knew we were going away, I made it clear when I needed the cheque by (my db is staying at mine so was going to get him to pay in) otherwise they were to request my bank details to pay into my account. No request for bank details and my db has opened all my post and no cheque still!!! I have a charge for late payment (think it´s something like 5 pounds per day late, can´t remember at mo as never had this problem before). Problem is, the amount they owe is only 51 pounds as it´s just a school run - STILL, it´s annoying they haven´t paid!

My question is a) should I charge late payment fee and b) if so, should I really do the 5 pounds per day late as it´s only a small amount owed????

Only got 5 mins left on machine as coin operated but will be back later to check back. TIA

Hi looneytune hope you are having a lovely holiday.
Definitely charge the late fee as if not they will think they can do it again however maybe only charge £2 a day as you were on holiday but if you had been at home would def charge full rate hth

Thanks If anyone else has any other thoughts, please say to give me the confidence to email them to let them know!

Lovely holiday thanks, don´t want to come home

Charge them, this happened to me once when away on holiday, though money was in the bank (a large amount) none there, so had to curtail what we did on holiday. I know insist that i am given a post dated cheque before i go away if payday is over a holiday, at Christmas they have to give me a cheque of January on the last working day before Christmas. Oh and charge them it might only be a school run, but its YOUR money, remember they couldn't work without you, and would soon scream if they weren't paid on time.

Thanks, money running out again but will be back

You can't charge £5 a day because that is the same as banks charging excessive amounts for over drafts, and it isn't legal for other organisations either. You can only charge a reasonable cost to cover your extra admin - cost of letter/phone call/extra bank trip. so £5-£10 total and possibly interest at most I would think.

LIZ i dont know any childminder who dosnt charge 5.00 per day.

Liz P, you have a point but we're not the same as banks with pots of other peoples money to use til we get paid what we're owed.

When we don't get paid we can't put petrol in the car or put food on the table. Which makes it rather difficult to look after your own family let alone provide a quality service for other people's.

I've put in my contracts that where payment date occurs during a holiday, the Parent agrees to make their payment prior to the commencement of the holiday unless they have previously arranged automated payments. I do accept post-dated cheques.

What I've done before (which you can't do while you're away) is to tell the parent if they pay up in 24 hours i'll waive the late fee.

Its really upsetting to me when parents don't value me enough to pay me on time. Its insulting.

i would charge them whatever charge you have inccured for them ot paying your moeny in!

but we arnt banks. we are self employed and more often than not we need the money, how ever little. i charge 15 late fee as from april and as recommended by me accountant (friend) but someone paid late this months, used a stupid excuse and as they are new said wouldnt charge on this occasion.............bank just written to say that a cheque i posted has bounced and they are charging me 35.00.

charge them and let them know you are cross. you should not have to be doing this on your holiday.

rant rant moan moan

1 min left so can´t reply properly but just wanted to say, if parent didn´t like charges in contract, they should say before signing. It´s NOT illegal and I can do whatever I like. Having said that, I´ve given option to pay into bank asap to avoid charge

I would email them and request the money be either oaid in by end of working day tomorrow or a cheque dropped in to your house by the end of tomorrow (for your db to pay in) or the late payment fee will be applied. Maybe they think that because you're away that there's no need to rush to pay you (although this is inacceptable).

Cheers Mogs, it had all been made clear before I went away which is why I´m so upset about it Never mind, hopefully they´ll pick email up and pay into my account

I know you don't have the same amount of money as banks, and you can get people to sign that they agree, but if they don't then pay and the only way of reclaiming the money is via a small claims I doubt you would suceed.

Our playgroup also has problems with late payment and after getting quite badly burned over non payment have now introduced a charge for late payment, but it has to be reasonable and we are quite clear that it is an administrative charge, and not a penalty.

If their non payment makes you incur extra bank charges, then that is a reasonable charge I would think (for you to pass on to them) as is a set amount like £15 for late payment. It's the daily racking up that you might have a problem getting if you went the legal route to reclaim.

Think the following may be useful:
A User's Guide To Late Payment Legislation - I haven't read it yet, but expect it's useful.

Alas, that was only for B2B not B2C, will keep hunting - though that guide will be handy for anyone dealing with late payments from other small businesses.

Found something useful - Guidance On Unfair Contract Terms - see page 13, Penalties.

Alas, I don't think you can charge... even with it being in the contract - as if the contract was disputed, it may be considered to be an Unfair Term.