Handling Late Payments
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OUr club went to all automatice withdrawals just
for that reason. We no longer have a problem and so far have not had an
overdraft to deal with
During last nights webinar, one of the participants asked about charging penalties when someone was late with their club contributions. Do any of you have any advice/experience you could share with her?Laurie Frederiksen
Invest with your friends! www.bivio.com Become our Facebook friend! www.facebook.com/bivio Follow us on twitter! www.twitter.com/bivio Follow Us on Google+ Click here to Subscribe to the Club Cafe email list. Click here to Unsubscribe The Autumn Chase Women's Investment Club has a statement in the Bylaws as follows: "A late payment fee applies to all monthly contributions that are received after the close of the monthly membership meeting in which the contribution was due. The late payment fee increases the longer the monthly contribution remains unpaid. The following late payment fee schedule applies to all members: 1-7 days late $5.00 8-31 days late $20.00 31-61 days late $30.00 Member may request that a late payment fee be waived due to financial hardship. The request should be directed to the President for consideration by the managers." Let's get out of the house! Ruthy Sellers From: Laurie Frederiksen <laurie@bivio.biz> To: The Club Cafe <club_cafe@bivio.com> Sent: Monday, May 5, 2014 10:54 AM Subject: [club_cafe] Handling Late Payments During last nights webinar, one of the participants asked about charging penalties when someone was late with their club contributions. Do any of you have any advice/experience you could share with her?Laurie Frederiksen
Invest with your friends! www.bivio.com Become our Facebook friend! www.facebook.com/bivio Follow us on twitter! www.twitter.com/bivio Follow Us on Google+ Click here to Subscribe to the Club Cafe email list. Click here to Unsubscribe Both my clubs charge a late fee - $5 and $10 for a check later than one week. Be sure in bivio to list that charge as a fee rather than part of the member's payment to their account. From: Laurie Frederiksen <laurie@bivio.biz> To: The Club Cafe <club_cafe@bivio.com> Sent: Monday, May 5, 2014 10:54 AM Subject: [club_cafe] Handling Late Payments During last nights webinar, one of the participants asked about charging penalties when someone was late with their club contributions. Do any of you have any advice/experience you could share with her?Laurie Frederiksen
Invest with your friends! http://www.bivio.com/ Become our Facebook friend! www.facebook.com/bivio Follow us on twitter! www.twitter.com/bivio Follow Us on Google+ Click here to Subscribe to the Club Cafe email list. Click here to Unsubscribe Our club has a paragraph in our Partnership Agreement to charge a late fee but our club decided not to enforce it. Next time we amend the agreement we will take it out. We want the members to have a good experience in the club and if someone forgets or doesn't have the money at the time it really doesn't effect the rest of the club. John Rice ABODI Investment Club From: Laurie Frederiksen <laurie@bivio.biz> To: The Club Cafe <club_cafe@bivio.com> Sent: Monday, May 5, 2014 8:54 AM Subject: [club_cafe] Handling Late Payments During last nights webinar, one of the participants asked about charging penalties when someone was late with their club contributions. Do any of you have any advice/experience you could share with her?Laurie Frederiksen
Invest with your friends! www.bivio.com Become our Facebook friend! www.facebook.com/bivio Follow us on twitter! www.twitter.com/bivio Follow Us on Google+ Click here to Subscribe to the Club Cafe email list. Click here to Unsubscribe I've been clubbing since 1995 and I can tell you that a late fee only gives the member PERMISSION to be late. In other words, it's an alternative to paying on time. It says, "OK! No problem!" I once had a member tell me it was worth the extra $5 per month just to get me off his a**. Don't bother. Simply make it unacceptable to be late. What is an investment club, after all? It's a place where people pool their time and their talents, and their money to invest in the market. If they are not going to pay, they should not be in the club. They know this and they don't make it a priority because you've shown them it's not necessary. The group is as culpable as the non-paying member. I am always surprised when this comes up. I would think it would be obvious. Lynn Ostrem Crow River Investment Club Lynn Ostrem
Resource Management Group, Inc. 4439 McAllister Av NE St.Michael, MN 55376 Office: 763/497-5153 Fax: 763/497-5838 Cell: 612/750-4943 garbagecop@gmail.com On Mon, May 5, 2014 at 11:53 AM, JAYNE GILBERT <jaynegrd@sbcglobal.net> wrote:
My partnership prefers not to call ourselves a "club" and we have found it fosters more respect for the group. We charge a $10 late fee because sometimes a person is traveling and just doesn't send a check in a timely manner. It happens perhaps twice in a year. Since fees do not buy units. they benefit all members proportionally and no one wants to pay money that does him/her little or no good. We handle the requirement of investing time and talent by requiring attendance at 80% of our monthly meetings and have used that provision only once to ask a non-contributor to leave. Mike Jones Wall$treet Wannabees Bloomington, MN From: Lynn Ostrem <garbagecop@gmail.com> To: The Club Cafe <club_cafe@bivio.com> Sent: Monday, May 5, 2014 12:01 PM Subject: Re: [club_cafe] Handling Late Payments I've been clubbing since 1995 and I can tell you that a late fee only gives the member PERMISSION to
be late. In other words, it's an alternative to paying on time. It says, "OK! No problem!" I once had a member tell me it was worth the extra $5 per month just to get me off his a**. Don't bother. Simply make it unacceptable to be late. What is an investment club, after all? It's a place where people pool their time and their talents, and their money to invest in the market. If they are not going to pay, they should not be in the club. They know this and they don't make it a priority because you've shown them it's not necessary. The group is as culpable as the non-paying member. I am always surprised when this comes up. I would think it would be obvious. Lynn Ostrem Crow River Investment Club Lynn Ostrem
Resource Management Group, Inc. 4439 McAllister Av NE St.Michael, MN 55376 Office: 763/497-5153 Fax: 763/497-5838 Cell: 612/750-4943 garbagecop@gmail.com On Mon, May 5, 2014 at 11:53 AM, JAYNE GILBERT <jaynegrd@sbcglobal.net> wrote:
Our club suggests a monthly contribution of $35. We do not charge a late fee. Our members have different preferences for payment - some pay $35 every month, others pay $50 (or more) every other month, and some members pay for a full year in advance. Our members like this flexibility and not worrying about late payment fees helps make the Treasurer's job a little easier.
We do have a clause in our Partnership Agreement that says the club may expel a member if he falls behind 3 months in payment. We've never had to use this. One member of our club was ill for several months and did not contribute. Based on the circumstances, we simply let it ride and the member eventually withdrew voluntarily.
Not sure this would work for everyone but it has worked very well for our club.
Len Delmolino
Treasurer, Oak Point Investment Club
Middleboro, MA
From: "Lynn Ostrem" <garbagecop@gmail.com>
To: "The Club Cafe" <club_cafe@bivio.com> Sent: Monday, May 5, 2014 1:01:16 PM Subject: Re: [club_cafe] Handling Late Payments I've been clubbing since 1995 and I can tell you that a late fee only gives the member PERMISSION to be late. In other words, it's an alternative to paying on time. It says, "OK! No problem!" I once had a member tell me it was worth the extra $5 per month just to get me off his a**. Don't bother. Simply make it unacceptable to be late. What is an investment club, after all? It's a place where people pool their time and their talents, and their money to invest in the market. If they are not going to pay, they should not be in the club. They know this and they don't make it a priority because you've shown them it's not necessary. The group is as culpable as the non-paying member. I am always surprised when this comes up. I would think it would be obvious.
Lynn Ostrem
Crow River Investment Club
Lynn Ostrem Resource Management Group, Inc. 4439 McAllister Av NE St.Michael, MN 55376 Office: 763/497-5153 Fax: 763/497-5838 Cell: 612/750-4943 garbagecop@gmail.com On Mon, May 5, 2014 at 11:53 AM, JAYNE GILBERT <jaynegrd@sbcglobal.net> wrote:
Thank you for the responses so far everyone. I think they are a nice overview of different ways clubs are addressing this issue. I'm curious. For those of you who have late fees, do you find it helps the problem of late payments?Laurie Frederiksen
Invest with your friends! www.bivio.com Become our Facebook friend! www.facebook.com/bivio Follow us on twitter! www.twitter.com/bivio Follow Us on Google+ Click here to Subscribe to the Club Cafe email list. Click here to Unsubscribe Our club has a late payment fee, but, we've never enforced it in our 5 years of existence. We're 8 residents of the same active senior community. Two things generally happen - if someone is not at a meeting, I generally layout the mandatory required payment for them; or, if they forgot their check, they drop it in my mail slot the next day. (Occasionally someone who travels a lot will give me 3 or 4 checks in advance to use when necessary. ) We know each other, occasionally socialize and are "California laid back". From: Laurie Frederiksen <laurie@bivio.biz> To: The Club Cafe <club_cafe@bivio.com> Sent: Monday, May 5, 2014 11:45 AM Subject: Re: [club_cafe] Handling Late Payments Thank you for the responses so far everyone. I think they are a nice overview of different ways clubs are addressing this issue. I'm curious. For those of you who have late fees, do you find it helps the problem of late payments?Laurie Frederiksen
Invest with your friends! www.bivio.com Become our Facebook friend! www.facebook.com/bivio Follow us on twitter! www.twitter.com/bivio Follow Us on Google+ Click here to Subscribe to the Club Cafe email list. Click here to Unsubscribe We rarely have a problem with late payments as we pay quarterly and the Treasurer sends out a reminder notice. In one club we are all equal partners so the checks can't be deposited until all checks are in. Those members are never late with checks. From: Laurie Frederiksen
<laurie@bivio.biz> To: The Club Cafe <club_cafe@bivio.com> Sent: Monday, May 5, 2014 1:45 PM Subject: Re: [club_cafe] Handling Late Payments Thank you for the responses so far everyone. I think they are a nice overview of different ways clubs are addressing this issue. I'm curious. For those of you who have late fees, do you find it helps the problem of late payments?Laurie Frederiksen
Invest with your friends! http://www.bivio.com/ Become our Facebook friend! www.facebook.com/bivio Follow us on twitter! www.twitter.com/bivio Follow Us on Google+ Click here to Subscribe to the Club Cafe email list. Click here to Unsubscribe We are a new club & had a hard time tracking this at first. When we asked people to set up auto payments with their bank, our problem almost disappeared. We have a couple of people who have yet to set this up, but they know they need to and plan to do so. Heidi On Mon, May 5, 2014 at 1:47 PM, JAYNE GILBERT <jaynegrd@sbcglobal.net> wrote:
Heidi McNamee 503-317-8939 cell
It's not OUR money, it's THEIR money. If they don't pay on time then they didn't buy shares this month. If the payment comes in late it buys shares next month.
We originally had the late payment fee in place and only had one or two people who we had to use it on in our first 8 years. I finally heard an argument from someone online about how ridiculous it is to charge people for not making an investment, especially when it doesn't hurt anyone when they are late or don't pay at all; we no longer have a late fee. We did away with withdrawal fees for the same reason. It's only a little extra work to make a withdrawal so we only charge actual expenses incurred, which is a postage stamp to mail their K1 at year-end!
We have also gone to electronic funds transfers for monthly investments so that the money is in the club account the day of the meeting. Now we can place our buy/sell orders the very next day, no longer having to wait for checks to be deposited and clear.
Bob Mann
Lunch Money Investment Club
What are the tax implications for the club if they don't charge a withdrawal fee? From: Bob Mann <sailrmann@maestroanalyzer.com> To: club_cafe@bivio.com Sent: Monday, May 5, 2014 6:09 PM Subject: Re: [club_cafe] Handling Late Payments
It's not OUR money, it's THEIR money. If they don't pay on time then they didn't buy shares this month. If the payment comes in late it buys shares next month.
We originally had the late payment fee in place and only had one or two people who we had to use it on in our first 8 years. I finally heard an argument from someone online about how ridiculous it is to charge people for not making an investment, especially when it doesn't hurt anyone when they are late or don't pay at all; we no longer have a late fee. We did away with withdrawal fees for the same reason. It's only a little extra work to make a withdrawal so we only charge actual expenses incurred, which is a postage stamp to mail their K1 at year-end!
We have also gone to electronic funds transfers for monthly investments so that the money is in the club account the day of the meeting. Now we can place our buy/sell orders the very next day, no longer having to wait for checks to be deposited and clear.
Bob Mann
Lunch Money Investment Club
Our club Sable Currency used to charge a$10 late fee then we decided to stop. The economy hit a couple of our members pretty hard. So we need to amend our bylaws as well. On May 5, 2014 11:54 AM, "Laurie Frederiksen" <laurie@bivio.biz> wrote:
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