Simpedia

Claire C. Pennsylvania

I don’t know how late fees apply to other industries but credit card companies charge exorbitant late fees and seem to get away with it. It would seem that if late fees were illegal then what credit card companies do is illegal. With lesson fees, the student’s parent knows when it is due and should pay on time unless they come directly to you for help in an extenuating circumstance. I think the student/parent just wishes that the late fees are illegal. It would be interesting to hear more about this subject.

Roberta B. Michigan

Mark, my understanding is that as long as you have your late fee policy clearly stated and signed by the student/parent, you are in the clear. Make sure you define specifically when payment is due, when it is considered late, and what the late fee is. Other professions/companies charge late fees (i.e. mortgage companies, credit card companies, doctor’s offices, etc.) and you might want to remind your clients about that. Regardless, your policy is your policy, and when they signed on the dotted line, they accepted that policy. There will always be the complainers who will try to get out of paying such fees. I’ve experienced that as well, but I hold firm. I have my mortgage to pay by the 1st too.

Carrie L. Michigan

I have them sign a ‘contract’ that they understand the policies about make-ups, late fees etc. While it’s not reviewed by an attorney it’s still something that I think students should take seriously. That should be enough to have students follow through on paying them!

Beth W. Tennessee

I think that for a student to even say the word “legal” in my studio would scream very loudly to me about our relationship, and that would be concerning to me.

Cheri S. Utah

Also, I don’t even know what it means to say it’s illegal. Almost any bill can incur late fees. My city water bill states it right on every bill: customers who pay after [date] pay $10 more. Besides the credit card late fees someone already mentioned, it’s possible to be charged late fees for health or car insurance, utilities, mortgages, and medical bills.

If they knew about the late fees ahead of time, what’s the issue? In this case, as Beth said, there’s a deeper issue that needs to be addressed. If they weren’t informed in advance, then maybe to preserve good will you would let past lapses go and implement late fees starting now, with clear, written studio policies.

Donny L. Ohio

My guess is if you’re going to create a policy or a law, one has to consider your ability and comfort level to enforce any policy. I’m not good as a bill collector and it’s uncomfortable for me to chase down tuition. I would have to share Beth’s sentiments about terms legal or legal suggestions in my studio therefore I don’t hint of late fees, just my personality. Though to the original question I have not been advised legally. If students don’t pay me as I require, I don’t teach that lesson and they give up their slot. Just like the daycare, and all the other professional providers. Yet it’s a curious question re: late fees legally. Late fees are everywhere!

Marg G. AU

I agree with Beth – What is going on in this person’s mind? And their relationship with you?

While the SM recommended is to bill monthly in Australia there is a long tradition of billing by the school term (we have four school terms) In over 30 years of teaching I have tried the following to get fees in on time and all have been stated clearly in my Agreement with the Parent/Adult Student and signed by both them and me.
1) Discount for early Payment
2) Late Payment Fee
3) Lessons cease until Payment if made and no deductions are made for lessons not received (my current one)

NEVER with any of these options have I had the legality questioned. With regard to results, the last one in ABSOLUTELY the most effective. Sometimes it is questioned and I just get out my agreement and read that section to them and remind them they signed it and all is dealt with. They don’t pay late next time.

Stephen R. California

I have in my policy a $10 late fee if tuition is not received by the first lesson of the month, but I expect it by the last lesson of the previous month! I’m adamant about that! I have never enforced the late fee, though; in all my years of teaching I consider it somewhat an “idle” threat! The reason is, I want to establish goodwill with students and I think our businesses as teachers are dependent on long term relationships and student retention. I want to be flexible with my parents’ financial situation as well as my own. The bigger problem I have is long term student retention and building a larger business. I, of course, need to be more actively building it and not relying so much on referrals.

Terah W. Kansas

I, too, have it stated in my Studio Policy that if tuition is not paid by the 5th of the month, a late fee of $15.00 will be charged. I have had a few conversations with clients but none of any concern. They have all relented to reason! However, I have a good friend who is an attorney in our area and I wrote him a quick note about our forum conversation and asked him about the mentioned question, “is that even legal?” My question was in regards to having the charge, etc., mentioned in the written policy.
Here is his response:

Hi Terah,

Yes, I believe a court likely would find such a late charge is legal and enforceable if someone were to go to the time and expense of litigating the issue. If it were to be found invalid, it probably would be if you had it buried in some “fine print” that was not readily seen, or if a court were to find the amount of the late fee was unreasonably high compared to the regular cost of tuition. Even there, I doubt a court would be likely to find the fee is excessive if it is clearly set forth in the agreement and the customer signs the agreement, knowing it is there.
-Curt

So…now you have the ‘legal’ response as well. If we are straight up (and especially clear in our Policies), we have as much right to charge late fees as everyone else!