Advice Needed Regarding Late Fees
Found in: About Business, Studio Policies
Mark M., New York
I offered a reduced Summer schedule which many of my lessons took advantage of, paying for one month of lessons but spreading them over July and August. Payment was due at the end of June as usual.
One parent in one reduced schedule group hadn’t yet paid as of today, with that group’s first Summer lesson scheduled for tomorrow. She emailed me just a little while ago to inform me that they’ll be discontinuing and hoped that the last-month’s-tuition prepaid upon enrollment would cover this upcoming month’s worth of July/August lessons. I certainly see no reason to say no to that, but I’m awfully confused about how to handle the rather significant late fee she was to owe by waiting this long into the month.
On one hand, this person was rather discourteous in being utterly out of communication for the last month despite me giving several tuition reminders and even telling her that I’d waive late fees for the first week of July, only to now spring a discontinuation on me the day before our first lesson since a month ago.
On the other hand, because the month of tuition was to cover through the end of August, even with the lateness into this month, she’s technically followed my 30-day written notice discontinuation policy, because there would be no additional tuition due between even now and 30 days from now, and the money covering this next month’s worth of lessons was in fact paid to me a long time ago, so I don’t know if I have a leg to stand on in claiming a late fee from her. How ironic that if she were continuing it would be absolutely clear that a late fee would be due.
I don’t know that this is a question of what’s correct or incorrect of me to do here, and I don’t know that I could successfully collect a late fee from her anyway given that she’s discontinuing with no more payments to make. I’m torn about whether to even try or just let it go. Thoughts?
Carrie L., Michigan
If you have a clear handbook of guidelines that you operate from and you have people sign something saying that they agree and read the policies then it is absolutely ok to charge late fees if they’ve been late!
If you take the… it’s in our handbook that you agreed to and here’s how I work my policies then follow them and just be direct about it.
If they have a problem and choose not to do what they have agreed to then they cannot continue.
Jo D., Australia
Mark it’s a tricky situation but I would let it go. It’s not worth your time and energy trying to chase the late fee. Send her off on a positive note and she may return down the track. I would focus on the ones who are enrolled.
Maureen K., California
I don’t require that people pay their last month’s tuition upfront, though I am planning to start that.
In any case I always figured that last month’s tuition requirement was to ease the frustrating situation when people do not comply with the 30-day-notice requirement. At least the teacher is not out the month’s tuition.
She was definitely discourteous and left you in a difficult situation, with the lesson being tomorrow. But if it were I, I would be happy I had the foresight to charge the last month’s tuition, and I would let it go.
Mei L., Canada
Hope you’re doing well since the Canadian conference. Q&A:
I imagine that late fees applies to those who are enrolled. However she is choosing to discontinue at this point. That would nullifying the late fees? Therefore, Your last month’s fees collected at enrollment will apply here = 30 days notice. It would definitely have been courteous if she provided advance notice. It’s unsettling for a teacher to have this news, especially just before class begins. However, this is life sometimes. I recommend ending the student-teacher relationship on a positive note as it affects each of our own personal music journeys. I often run into old students so you never know. Energy also best spent on those enrolled currently.
Senya B., California
I agree with ending on a good note, this person will talk about the resolution with friends or family. So that means at least 10 people will hear the story, about her ending lessons. A good “note” could mean future students for you.
However… I also agree with having a handbook for the future! I just finished mine. I’ve been working on it for almost 2 years! And all my experience good and bad, revises my “HANDBOOK”!
I started simple and just added changes each time I got burned!
I love my handbook now, I feel it protects me
Elaine F., South Carolina
I’d let it go— she’s leaving. She’s already left. She’s history. Dont spend any more energy on her. It’s not worth it in terms of energy or bad PR she might spread around.
Rebecca G., Colorado
I haven’t had a situation like this yet, and I’m still a pretty new teacher, but the more I teach, the more I realize how important it is to set aside the “rules” and ask myself what would feel best and produce the most loving result for all parties involved (you included, of course). After all, SM in some sense is about breaking hard-and-fast “rules” to achieve breakthrough results, and we’re trying to create long-term relationships here – not just with music but also with our students (past and present) and their families.
Based on this criteria, my instinct would be to preserve the relationship (because this person might spread the word about her experience of you) and forget the late fees. You could inform her that she owes them but since she’s decide to cancel you’ll let it go, but even that might not be necessary. This person isn’t committed to the curriculum and learning process and isn’t organized enough or compelled by integrity to follow the policies and respond to your requests, so I’m thinking I wouldn’t really want her in my studio, and based on that behavior, the departure could be saving you a lot more trouble in the future, which is payment enough IMO. Chasing her for $25-$100 in late fees doesn’t accomplish anything meaningful for you financially, and it will probably make her unnecessarily angry when she’s not even going to be coming back anyway, not to mention that you’ll probably never see the money. Yes, of course you have a right to collect that money, but does sacrificing the relationship for a few dollars really accomplish anything helpful?
One last possible line of defense: if she ever attempts to re-enroll, you could decide to put her on a modified payment plan based on her history, such as requiring 3 months’ payment up front or having her credit card on file so you could charge it when payment is due.
I’m sure others will have different opinions (and maybe even change my mind about this!), but this is my best suggestion for now.
Kristin F., California
We never know what is going on with people. She could have some serious personal financial issues that suddenly changed being able to afford lessons. I know how important it is for us to protect our “requirements” but I would not take it personally and let go of the late fee. I think a lesson to learn here is…that if someone ignores your invoices/warnings then you can let them know right away they have been dropped from the class. That way you will not feel powerless in any situation like that. Then if they really want to continue you will hear back quickly. If they don’t get back to you then there is no late fee!
Shehmae H., Australia
Reading between the lines of what you’ve mentioned, I think you already know what to do.
Go with your gut and leave the analysis for more rewarding transactions.
Kasia H., Washington
In my teaching career I found that there are different people come and go. Some of them with integrity some are not. I realized through years of teaching that I don’t have a control over the decisions people make, especially those who decide to just not to come and not to pay. Today I have a different policy for payments.
Anyways, as Kristin pointed maybe there is some situation in the family or wherever reason (not that this is the right way to resolve the issue)
But I would just let it go…and focus your energy on the students you have and those who will still come.
I believe that there will be more students and families coming to your studio with integrity.
Claire C., Pennsylvania
Let it go. I get referrals from students who quit suddenly with no notice. Sometimes parents get tired of coaching kids who are very resistant to practicing and maybe they just had the last straw and don’t want a big fight. Some kids are very stubborn and can give even the most stalwart parent a run for their money. Try to leave it on the best terms you can. Parents know other parents and word gets around and you never know who will put in a good word for you with another parent.