Reply

Justification for late payment fee

Starter Poster
Posts: 7
Registered: ‎20-07-2015

Justification for late payment fee

by Al_Bundy Starter Poster
Message 1 of 19 (2,195 Views)

Someone already asked this question : how do you justify the late payment fee of $15 (+GST)?

 

The repsonse back was

 

Our late payment fee represents the genuine cost of collections for unpaid accounts.

 

There are SMS, phone calls, emails, letters etc, just depends how fair into the collections process you get.

 

This is quite clearly rubbish. I recently got hit with a late fee (for the first time), I paid my bill - but 10 days late. There was no additional cost to Vodafone, except maybe the interest on $59 for 10 days. You didn't get anyone from Baycorp or some other collecction agency onto me. You didn't get anyone to phone me. You didn't send me a letter, a TXT, not even an email, nothing. What this, and your statement, logically tells me is that the people who pay late (but still pay) are subsidising the people who don't pay and genuinely incur Vodafone collection costs.

 

Let me get this quite straight, to make sure I have this right. If I were to not pay my bill for months on end, and Baycorp had to be called in, you're not telling me all those collection fees and interest wouldn't be stuck on my bill, and I'd only pay the $15+GST? Or are you having two bites of the cherry - recovering incurred costs from the non-payers and recovering unincurred costs from the payers? Hmmmm.

 

So I rang Customer Service, and told them your fee was excessive and unjustifiable. They said, pay your bill on time. OK fine, I can take my business elsewhere. Their response was "well Spark or 2degrees will charge you a late fee". Well, they probably would, but maybe they wouldn't to keep a customer. Anyway, 2degrees only charges $7.50 for a late payment (does that mean they're twice as efficient as you in collecting unpaid accounts?)

 

You want to skim $15 off me, I'm off to 2degrees. My internet account will go somewhere else as well in due course.  The silly thing is, to make $15 in (cough) "genuine collection costs", you're losing thousands and thousands I'd be spending with you over the next 1,2,5 years.  Think of all the $15 late fees you'll have to charge to make up for it. Penny wise, pound foolish, I guess.

 

 

 

 

 

Community Manager
Posts: 2,261
Registered: ‎02-02-2013

Re: Justification for late payment fee

by Community Manager Community Manager
Message 2 of 19 (2,189 Views)

@Al_Bundy

Sorry to hear of your unhappiness and intention to leave us but the terms & conditions are quite clear.

Yours

Mike

Channel Manager, Help & Support
Vodafone New Zealand
Starter Poster
Posts: 7
Registered: ‎20-07-2015

Re: Justification for late payment fee

by Al_Bundy Starter Poster
Message 3 of 19 (2,173 Views)
So by addressing none of my questions and falling back on a boilerplate reference to the terms & conditions, I guess that's an answer in itself. You can't justify the fee and it's a money grab. Thanks, that's all I need to know.
Posted from Apple iPad
Honoured Contributor
Posts: 1,012
Registered: ‎19-10-2014

Re: Justification for late payment fee

by Honoured Contributor Honoured Contributor
Message 4 of 19 (2,170 Views)

Hi @Al_Bundy,

 

I'm also disapointed to hear that you're upset about the LPF

It is a fully avoidable fee remember. You're given 17 days to make payment, plus an additional grace period after the due date.

A sure fire way to avoid the LPF would be by setting up a direct debit from your Credit/debit card or bank account. Our customer care team can assist you with setting up this facility. If you would like to set this up, Please let me now and i'm sure something can be done about the LPF Smiley Happy

 

I hope this gives you clarification and a resolution to your problem

I work in the Mobile On Account and Mobile Technical Support team. I volunteer my time on the Community.
Starter Poster
Posts: 7
Registered: ‎20-07-2015

Re: Justification for late payment fee

by Al_Bundy Starter Poster
Message 5 of 19 (2,164 Views)
I'm not sure where the 17 days comes in, my bill is due on the 1st, and I paid on the 10th...and got stung for a late fee. I paid it late, that's fine, I accept that. But $15 on a $59 bill is ridiculous, when you know and I know it's cost you nothing to collect it. You didn't even bother to send me a reminder! I've been with Vodafone for one service or another since 2001, what really hacks me off is responses like the ones I got from the telephone CSR and from Manager Mike up there (who really should know better) - seemingly $15 is more important to you than long term customers. What's even more idiotic is Vodafone is prepared to lose money over it...next month and every month after that your income from me will be zero! I just don't get it...but hey, it's your business, run it however you like.

Anyway, thanks for the suggestion (and your courteous response), it's appreciated. Unfortunately the response to my complaint has been awful from some parts, I think I'll just leave it there and look elsewhere. Thanks.

Posted from Apple iPad
Community Manager
Posts: 2,261
Registered: ‎02-02-2013

Re: Justification for late payment fee

by Community Manager Community Manager
Message 6 of 19 (2,095 Views)

@Al_Bundy

 

I'm sympathetic to the issue. But you've said you didn't pay your bill on time, you acknowledge that most companies will charge a late payment fee, so the issue is the amount? It's not a flexible amount, it is what it is, hence my reference to T&Cs. 

 

I'm sorry that after being a customer for so long you want to leave. As mentioned, there are a myriad of ways to pay your bill automatically, we're more than happy to help you set those up then you don't need to worry about reminders, late fees and so on.

 

I got a parking ticket recently - it's $45 but I'm not going to say well I was only there 5 minutes over therefore it should be $10. I accept I made a mistake and I paid it. I get my Vodafone bill, I put a reminder in my diary and I pay it.

 

Totally understand, it's annoying to get an extra charge but you didn't pay your bill. If you're planning to leave it's worth talking to our Service team on 777 and have a conversation about it.

 

m

Channel Manager, Help & Support
Vodafone New Zealand
Starter Poster
Posts: 7
Registered: ‎20-07-2015

Re: Justification for late payment fee

by Al_Bundy Starter Poster
Message 7 of 19 (2,037 Views)

MikeHales wrote:

@Al_Bundy

 

I'm sympathetic to the issue. But you've said you didn't pay your bill on time, you acknowledge that most companies will charge a late payment fee, so the issue is the amount? It's not a flexible amount, it is what it is, hence my reference to T&Cs. 

 

"It is what it is"/"everyone else does it" and justifiable are two separate things. If your justification is that you're recovering costs, no-one here has managed to tell me what kinds of costs my late payment would have caused you. I can only conclude it's a money grab. I don't like a money grab, but worse than that, I don't like people p***ing in my pocket and telling me it's raining. Apologies for the phrase. If your T&C said the late fee was $100, should I just accept it and say "it is what it is"?

 

MikeHales wrote:

 

I got a parking ticket recently - it's $45 but I'm not going to say well I was only there 5 minutes over therefore it should be $10. I accept I made a mistake and I paid it.

 

Well many people would consider parking tickets a form of revenue raising, with a fine not commensurate with the length of time the spot was over-occupied and unable to be paid for by someone else. But if the council claims recovery of costs, I can see their point. They have teams of people walking around cars, marking the tyres, checking the meters, and printing the tickets. Extending the (bad) analogy, Vodafone have done none of these things to my car but still charged me the fine. 

 

 

MikeHales wrote:

Totally understand, it's annoying to get an extra charge but you didn't pay your bill. If you're planning to leave it's worth talking to our Service team on 777 and have a conversation about it.

 

Clearly I am not going to change the corporate late fee policy that you bafflingly cling to, so there's no point. If it's a question of making $15 or retaining long standing customers, I think most sane businesses would go with the latter. Maybe other people don't get annoyed about the fee, or annoyed enough to do anything about it. Anyway, I'm not going to bother ringing 777 - the first CSR I spoke to about this matter was so outstandingly poor, you should give him an award.

Ninja Adept
Posts: 1,023
Registered: ‎20-08-2008

Re: Justification for late payment fee

by Ninja Adept Ninja Adept Ninja Adept
Message 8 of 19 (903 Views)

"Well many people would consider parking tickets a form of revenue raising, with a fine not commensurate with the length of time the spot was over-occupied and unable to be paid for by someone else. But if the council claims recovery of costs, I can see their point. They have teams of people walking around cars, marking the tyres, checking the meters, and printing the tickets. Extending the (bad) analogy, Vodafone have done none of these things to my car but still charged me the fine."

 

Vodafone have a dedicated team who are paid and dedicated just to chasing up overdue payments - so yes there is a cost to business. There is a generous period of time allowed before the fee takes place. This is also something standard across businesses across the country, power companies (otherwise known as early payment discounts), ISPs, banks and so on. There a numerous methods available and even offers here personally to you on this post to assist you on this to avoid this or fix this late payment fee. There are terms and conditions you have agreed to on a contract you have signed.

I don't think you have reason to single out Vodafone on this. If you had a valid reason not to pay this would be taken into account by discussing with customer service or accepting offers made such as above.

If you decide for whatever reason you choose to not use direct debit then you need to be responsible to keep track pay your bills/rents/rates etc for services.

I suggest the best option is simply sending a direct message as has been offered already to Lucas who can sort this for you.

Starter Poster
Posts: 7
Registered: ‎20-07-2015

Re: Justification for late payment fee

[ Edited ]
by Al_Bundy Starter Poster
Message 9 of 19 (875 Views)

Nigel wrote:

 

Vodafone have a dedicated team who are paid and dedicated just to chasing up overdue payments - so yes there is a cost to business.

 

I just don't think you get it. I'm sure you have dedicated people chasing down other people's bills that haven't been paid for months, phoning them, sending letters, reminder emails, organizing collection agencies. I don't care about other people's bills, I care about mine. You didn't do any chasing up of my bill, yet you're still crying poor that I've cost you $15.

 

Nigel wrote:

There is a generous period of time allowed before the fee takes place.

 

That's irrelevant if the fee isn't justfiable. If you gave me a 30 day grace period before a $100 late fee, would that be generous too?

 

Nigel wrote:

This is also something standard across businesses across the country, power companies (otherwise known as early payment discounts), ISPs, banks and so on.

 

Sure. But if I phone my bank or credit card provider, plenty of times they've reversed fees because they value their customers. Not that I do it often, but when I have they've been accommodating, they don't have any attitude about it, and they don't try and give me any BS about T&C and "recovering costs". I'm sure they're well within their rights to, but they don't.

 

Nigel wrote:

If you decide for whatever reason you choose to not use direct debit then you need to be responsible to keep track pay your bills/rents/rates etc for services.

 

I do, and this one fell through the cracks. I can't say if it's the only late fee in 14 years with Vodafone, but there wouldn't be many. Which is fine, if the fee you charged was reasonable and commensurate with the effort it took you to recover it.  

 

Nigel wrote:

I suggest the best option is simply sending a direct message as has been offered already to Lucas who can sort this for you.

 

Thanks, but I'm already heading out the door. You're free to charge people whatever you want for a late fee. I think it's excessive, you don't, I'm casting my vote with my feet.

 

Starter Poster
Posts: 2
Registered: ‎31-07-2017

Re: Justification for late payment fee

by ColinMacdonald Starter Poster
Message 10 of 19 (378 Views)

Hi there, can you please tell me where reference is for "the grace period for late payment fees? is on the website? Cheers

Stats
  • 18 Replies
  • 2y ago
  • 2,196 Views
  • 0 Kudos
  • 8 Contributors