Excuse 2: We don't pay penalties
All, but this usually only comes up on first penalty
|Customer does not believe
penalties apply to them
1, penalties are a statutory part of all commercial contracts
|Customer knows penalties are in
the contract but believes some point of principle that they should not
|This is no different to
considering any other aspect of the contract does not apply - such as
paying for goods, etc. They presumably think paying within agreed terms is also
|Customer does not believe they
have an obligation to adhere to the agreement they have made
|Whether we charge penalties or
not should not be an issue - it only
applies if the customer breaks the contract and pays late. Customer
probably has a fundamental misunderstanding that they don't have to do
what was agreed, but that it is fair to do whatever they can get away
with and feels aggrieved that they failed to get away with paying late
when they usually do (with other suppliers).
- Cancelling charges the first time can help to resolve this, but
only sensible if customer is educated by the experience and will pay on
time in future.
- Having explained that the penalties do apply and got the customer
to understand this, if they still think as some principle that they
should not pay, then you could perhaps ask which other aspects of the
contract they feel should not apply either. Ultimately, a customer that
does not understand the basic concept of a contract like this is not a
customer you want as they are likely to be constant trouble.
- May be worth stopping penalties on their account as sooner or
later they will leave because of some other misunderstanding or point
of principle, at which point a large bill for penalty charges can be
issued and pursued via small claims court without difficulty.