[WARNING] LegacyFMS

[RockIT Man]

Last year we took on some 3rd party work. We rarely do this because of past issues, but decided to this time as we had a deposit, card on file, and the client agreed to pay our standard hourly rate and not the per job rate that they initially wanted. They were basically in an emergency situation and needed help immediately. We agreed to change our billing terms from Net-15 to Net-45 at the request of the client. We had the client sign our standard service agreement which outlines our billing terms, late fees, rates, etc.

Job was completed, some of our materials were used, invoice was sent same day. Payment was finally received after 70+ days. Our system had been sending reminders, late notices, etc. on a regular basis. Our system automatically adds late fees. Of course the late payment did not include the late fee charges, just the initial charge. We recorded the received payment, and our system continued to notify the client that they had an account balance.

They contacted last week and said:

"Good Afternoon, This job was closed out at a total cost of $x (plus the $x paid via credit card) as discussed, however, your company sent in an additional invoice for $x. Please note we cannot and will not be processing your invoice for $x. Please confirm. thanks! Ashley x"

Our response:

"Hi Ashley,


We've looked over your account and verified the charges. There was no cap put on the job before it was completed. It was agreed upon that we would bill the job at our standard hourly rate of $x per hour. Our payment terms are Net 15, however, we made a special exception at your request and extended payment terms for you all to Net x. Your payment came in 76 days after the invoice was sent out. As noted on the invoice and in correspondence, the balance is due to late fees.


Our system has sent 9 reminder notices dating back to 11-18-17 when your invoice was first past due. We also sent manual correspondence to x via emailremoved@legacyfms.com back in January.


Tue 10-03-17 04:51 PM > Auto(Initial Invoice) to emailremoved@legacyfms.com

Sat 11-18-17 10:35 AM > Auto to emailremoved@legacyfms.com

Sun 12-10-17 10:31 AM > Auto to emailremoved@legacyfms.com

Sun 12-17-17 10:31 AM > Auto to emailremoved@legacyfms.com

Wed 01-10-18 10:39 AM > Auto to emailremoved@legacyfms.com

Wed 01-17-18 10:31 AM > Auto to emailremoved@legacyfms.com

Thu 01-18-18 03:49 PM > Manual to emailremoved@legacyfms.com

Sat 02-10-18 10:30 AM > Auto to emailremoved@legacyfms.com

Sat 02-17-18 10:31 AM > Auto to x@emailremovedlegacyfms.com

Sat 03-10-18 10:30 AM > Auto to emailremoved@legacyfms.com

Sat 03-17-18 11:31 AM > Auto to emailremoved@legacyfms.com


Please see the attached signed service agreement which outlines our billing terms.


I hope that clears things up!


As of today, 03/19/18, your balance is $x. If you like, we can take a payment over the phone today.


Thank you,

RockIT"

Their Response:

"Hello,


We do not pay late fees. You will need to take that up with accounting but we are unable to process your invoice for $X


Thank you,


Ashley X

Client Coordinator

Legacy Group Enterprises Inc."


There you have it. LegacyFMS does not care what your service agreement says. I hope the above helps someone in the future. Cheers!

UPDATE: The response that @fencepost typed up was too good not to send over. So I sent it. I doubt it will make a difference, but it made me feel good inside.

 

[Markverhyden]

Hopefully it was just that one job. Late payment, especially very late, is a huge red flag in my book. I've been burned a few times in spite of being very careful. Probably too late for you to do a mechanics lien.

I'm always looking for more customers like everyone else. But I've stayed away from the facilities management stuff. I've done plenty of work at commercial sites and have learned that those companies are not the best to have as a customer.

 

[RockIT Man]

Hopefully it was just that one job. Late payment, especially very late, is a huge red flag in my book. I've been burned a few times in spite of being very careful. Probably too late for you to do a mechanics lien.

I'm always looking for more customers like everyone else. But I've stayed away from the facilities management stuff. I've done plenty of work at commercial sites and have learned that those companies are not the best to have as a customer.

It's the principal that bugs me, not the money. I don't charge late fees to make a profit, I charge them to discourage people from being late, especially when I have fronted the cost of the job with my own materials. I mean, what is the point of asking me to adjust my billing terms to net-45 if they were going to take 70+ and don't pay late fees anyways? Silliness!

Regardless, the purpose of the post was to shine a light on a larger company who thinks they are above the law.

 

[Markverhyden]

It's the principal that bugs me, not the money. I don't charge late fees to make a profit, I charge them to discourage people from being late, especially when I have fronted the cost of the job with my own materials. I mean, what is the point of asking me to adjust my billing terms to net-45 if they were going to take 70+ and don't pay late fees anyways? Silliness!

Regardless, the purpose of the post was to shine a light on a larger company who thinks they are above the law.

It's my experience that when a company requests 45 days to pay it's because they can't properly manage their finances and are living check by check so to speak. Seen it too many times.

 

[fencepost]

"If you are not the correct person within your company to address this, please forward it to them and also provide me with their contact information. I would be astonished if your contracts with clients did not include a provision for late fees, and we're no more inclined to accept 'We do not pay late fees' than your Accounts Receivable department would be."

 

[RockIT Man]

It's my experience that when a company requests 45 days to pay it's because they can't properly manage their finances and are living check by check so to speak. Seen it too many times.

Very good point!

 

[RockIT Man]

"If you are not the correct person within your company to address this, please forward it to them and also provide me with their contact information. I would be astonished if your contracts with clients did not include a provision for late fees, and we're no more inclined to accept 'We do not pay late fees' than your Accounts Receivable department would be."

*Ctrl+C*
*Ctrl+V*

Perfect response! Thanks.