High late fee

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nate

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#175427 29-Jun-2015 13:34

Anyone else think that Vodafone's late fee is excessive?

That's 21%!

I pay automatically by credit card, but still think it's way too high.

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#1333390 29-Jun-2015 13:38

If your bill was $600 it would not then be 21%

freitasm

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#1333392 29-Jun-2015 13:40

johnr: If your bill was $600 it would not then be 21%

What? In an absolute value it's still high.

mattwnz

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#1333395 29-Jun-2015 13:41

So are your automatically charged it if you are 1 day late? Or is there a bit of good faith with it? I don't think it is high, if say you are a week or more overdue, but sometimes a few days delay is normal. I do find that most people who pay me are late by at least a few days.

johnr

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#1333398 29-Jun-2015 13:42

mattwnz: So are your automatically charged it if you are 1 day late? Or is there a bit of good faith with it? I don't think it is high, if say you are a week or more overdue, but sometimes a few days delay is normal. I do find that most people who pay me are late by at least a few days.

No not 1 day late

Jaxar

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#1333403 29-Jun-2015 13:47

From the completely biased perspective of somebody who constantly saw the $10 fee ignored I kinda hope people think it is too high and thus people will pay on time. I am referring to the ones who pay almost a month later of course not the ones who are a couple of days late.

Since the fixed line fee was introduced I've forgotten once.

Please note: I have a professional bias towards Vodafone.

nate

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#1333411 29-Jun-2015 13:52

johnr: If your bill was $600 it would not then be 21%

It be fixed is what has been perplexed. Surely it should be % based?

graemeh

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#1333413 29-Jun-2015 13:52

It depends on what Vodafone do when you are late. The fee should reflect their actual costs and if there is any human interaction then it can easily cost this. If their computer systems just email a reminder then it is too high.

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timmmay

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#1333449 29-Jun-2015 14:21

If you don't like their late fees pay your bill on time or change providers.

Jaxar

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#1333453 29-Jun-2015 14:24

nate:
johnr: If your bill was $600 it would not then be 21%

It be fixed is what has been perplexed. Surely it should be % based?

If we are making suggestions on how a late payment fee be handled I like the idea of it starting out at a low fixed value and it increasing month on month for each month it is paid late.

For example. Say $5 if late in June. $10 if late in July as well. Paid on time in August well no late fee. Late again in December. Start at $5 again.

Ofcourse the problem with this is you are asking a company to spend a bunch of money to build a complex solution when the idea is to protect cash flow not squander it.

Please note: I have a professional bias towards Vodafone.

afe66

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#1333499 29-Jun-2015 15:21

Tapering late fees would be a hassle for the company, they want you to pay all the outstanding amount and you agreed to late fees when you signed up.

Tapering late fees would make it easier for customers to pay late which isn't in companies interest surely.

A.

mdooher

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#1333512 29-Jun-2015 15:37

graemeh: It depends on what Vodafone do when you are late. The fee should reflect their actual costs and if there is any human interaction then it can easily cost this. If their computer systems just email a reminder then it is too high.

precisely, It must only cover the cost of collection. It cannot be a fine or some kind of punishment. Only the government can issue fines. If they want to sting you for not paying on time they need to give you a discount each month for paying on time and then remove it when you don't pay. (same thing but legal)

Matthew

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#1333521 29-Jun-2015 15:46

I have to agree, that I think these late fees are outrageously high.

mdf

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#1333545 29-Jun-2015 16:11

mdooher:
graemeh: It depends on what Vodafone do when you are late. The fee should reflect their actual costs and if there is any human interaction then it can easily cost this. If their computer systems just email a reminder then it is too high.

precisely, It must only cover the cost of collection. It cannot be a fine or some kind of punishment. Only the government can issue fines. If they want to sting you for not paying on time they need to give you a discount each month for paying on time and then remove it when you don't pay. (same thing but legal)

^^^^^

Exactly this.

The banks are currently finding out about this through fair play on fees (I think that's the name) for (e.g.) overdrawn charges that bear no relation to their actual costs.

I suspect other service providers will be looking at it closely, and may well be why VF shifted from a percentage fee to a fixed fee - since I would imagine the internal costs (staff time etc.) involved don't vary that much depending on the size of the bill. An overdue bill for $60 or $600 probably involves similar costs for Vodafone.

johnr

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#1333548 29-Jun-2015 16:15

Another service provider has a higer late payment fee over the Vodafone $17.25

Bung

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#1333550 29-Jun-2015 16:16

Most of the power companies seem to have similar penalties disguised as prompt payment dis ounts for those who pay by the due date.

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