What to Do about Excessive Late Payment Penalties

Figuring out what to do about excessive late payment penalties can be frustrating at first. However, there is hope in getting some of them reduced or eliminated.

Talk to Your Landlord

If you have been late for rent several times, your late fees may pile up. Although you may defer paying the late fees, the landlord really can’t immediately kick you out for the non-payment of the late fees alone. However, he may write notices and call you regarding the late fees. Depending on your rental agreement, you may face a high level of fees for habitually paying your rent late. If you have excessive late payment fees due along with the rent on the first day of the month, try talking to your landlord. Explain to him your personal situation and why you are late. In addition to putting a mark on your credit, the landlord can also ruin your chances at future residences with a bad reference. You don’t want to alienate the landlord.

Try negotiation. If you are in bad financial straits, the landlord is probably aware of that fact. If you’ve lost a job, make sure to let him know. He can’t kick you out for losing a job. Offer to pay a quarter of your late fees if the others are forgiven. This opens the room for negotiation, then go up to almost a half of the fees, if you can afford it. However, when dealing with negotiating on late fees, only agree to what you can actually pay. This is your chance to start rebuilding trust and a good tenant-landlord relationship.

Answer the Phone to Collectors

Although it can seem scary when debt collectors call you excessively on the phone, your best bet is to simply answer the phone. You don’t have to get involved in a long conversation. If you can’t handle talking to them at the moment, simply answer and ask him not to call back. However, if you have your paperwork handy, you can answer it and try to negotiate a payment with reduced late payment penalties.

Talk to the Person in Charge

When dealing with debt collectors, you want to talk to the highest authority possible, as that will be the person who has the ability to take away late fees. Although many lower level employees have this power in some company, main corporations may not allow that. Some of the smaller ones don’t, either. When you do get the person in charge on the phone, explain your story. Be sincere. Don’t hype up your sob story, but explain in a clear, thoughtful and concise manner the reasons why your payments got behind and all the ways in which you are trying to mend the situation.

Offer a Solution

Contact your debtors with a solution to the debt that you face. In no uncertain terms, be clear that you will not be able to take care of the debt if the late fees are not waived. Explain that you may have to turn to solutions such as different levels of bankruptcy filings if the company will not work with you. If a customer files bankruptcy, the customer can end up with none of the money repaid. Most companies will settle for the balance without the late payment penalties or reduce them significantly.