Consulting Fee for Bounced Check: Seeking Advice

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Discussion Overview

This thread explores the topic of charging service fees for bounced checks among Pampered Chef consultants. Participants share their personal experiences and opinions regarding the handling of bounced checks, including bank fees and the potential for additional charges.

Discussion Character

  • Anecdotal
  • Opinion-based
  • Exploratory

Main Points Raised

  • One participant, identifying as a consultant, mentions that their bank charges $10 for a bounced check and they pass that charge to the customer without issue.
  • Another participant shares their experience of having a bounced check and insists on charging the customer for both the bank fee and the original amount owed.
  • Several users note that some banks charge higher fees, with one participant stating their bank charges $25 for a returned check.
  • One participant discusses the frustration of pursuing payment for a bounced check and expresses concern about the time spent on the issue.
  • Another participant mentions that their mother, who works at a bank, advised that only bank-related fees can be passed on to the customer, not personal fees.
  • One participant suggests creating a flyer to inform customers about bounced check fees, while another expresses hesitation about posting such information due to its rarity.
  • One participant recounts a positive experience where a customer proactively communicated about a potential bounced check and resolved it promptly.
  • Another participant reflects on their experience with a bounced check from a landlady, noting that considerate individuals typically offer to cover any associated fees.

Areas of Agreement / Disagreement

Views differ on whether consultants can charge additional personal fees for bounced checks, with some participants believing only bank fees can be charged, while others have charged for their time and hassle.

Contextual Notes

Participants share varied experiences based on their individual banking situations and personal interactions with customers regarding bounced checks.

Who May Find This Useful

This discussion may be of interest to Pampered Chef consultants who encounter issues with bounced checks and are seeking insights from peers on how to handle such situations.

Nicky
Messages
30
I have a huge question. I was wondering if as a consultant I can charge someone a serivce fee for a bounced check? It has not happened to me but my director has had it happen to her and we really think that the lady is so far in the hole with her bank account that she can not get out. I was just wondering so if anyone has any input on this it would be great.
 
My bank charges me $10 for a deposited check not clearing, so I pass the charge along to my customer. No one has balked at that. Most retail stores charge you $25 or more for bouncing a check.
 
I would like to know too!

I have an NSF check sitting here beside me...(first one in 3.5 years, thank God!) My bank charged me $10, which I for SURE will be having her pay me...but, should we/can we charge anything extra for our time and hassle?

That IS what you are asking about, too, right?
 
I have done it before. I had a host give me a check that bounced and I made her pay me the bounced check fee on top of the amount that she owed me. You have to recoup your losses, especially when banks charge YOUR account for someone else's bad finance problems!
 
I talked to my mom, who works at a bank, and she said you can pass any fees directly related to the bounced check on to the customer. ie the bank fee, the amount of the check and any postage fees for notifying the customer. She said she didn't think you could charge a personal fee.
 
I wish my bank only charged $10! It charges $25 for a returned check. I've only had it happen once & the person sent me a money order for the original amount plus the $25.
 
pamperedtraci said:
She said she didn't think you could charge a personal fee.
That's kind of what I thought, but it just irks me that I am spending time CHASING THIS LADY DOWN for a $25 check plus a $10 bank fee. She is dodging my phone calls (I think) since I have left a message every day since I got the check back in the mail on last Thursday. Really is a PITA for me! But, on the bright side :D :D :D :D , I could be out a WHOLE lot more than $35!
 
  • Thread starter
  • #8
Ok my next question is do we have to have it posted on everything or can we just make flyer that says something like if we have a bounced check then you are resposible for paying the bank fee and the product? I am in the process of making one now by the way.
 
I thought make a sign that says "accepting Credit/Debit Cards, Checks*, and Cash" and then put an * saying:
*$15 fee for all returned checks

Have it displayed at the show so they know right away.
 
I am lucky. My bank only charges a fee if it overdraws my account. Luckily I have only had one bounced check and the girl called to let me know it was possible ahead of time and when it did bounce she bought me cash right on over the same day.

For those of you trying to collect, if you are not successful call you District Attorney's office. They will tell you the steps to go through and then if that is not successful they will prosecute to collect it for you and all the costs are taxed to the bad check writer - you do not pay a dime. Or at least that is how it works in Alabama. We have to do that at work some. You would think people would not write a lawyer a bad check!:eek: :D
 
  • Thread starter
  • #11
I will post it when I am finished. I hope you all like it...I am kinda new at making things like this, but LOVE it...Ok here it is...please let me know what you think.
 

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Last edited:
once I had a check that I wasn't really comfortable with, so instead of depositing it in my account, I went to the bank that the customer had an account with to cash it. Unfortunately, this bank would NOT cash the check without charging ME :eek: a fee since I did not have an account there, and because it was more than $50 . So, I asked them if there were sufficient funds to cover it, once they said yes I took it to my bank. Granted something could've cleared her account prior to my bank processing, but atleast I felt comfortable that there was $$ in the account. In the end it all worked out!:D

I like the idea of posting a notice about return check fees!
 
returned checkI only had one return check in my 2 years 5 months selling PC. It was my landlady...lol :eek:

She was very helpful in paying the bounced check fees and was probably just embarrassed. I always wondered where all the rent we paid and her other renters paid her went. I guess she had more bills than I knew about. Her niece was my good friend and neighbor for over 2 years. So I got to know our landlady personally.

Usually people who are not inconsiderate and rude know there are bank fees associated with a bounced check and offer to pay those fees. Those who act "dumb" need to be told and made to pay the fees. Personal time and anguish they cause us, is unfortunately, not something we can recover! :p

Debbie :D
 
Nicky, just want to let you know you spelled a word wrong in your flier.

It should say "ACCEPT" instead of "except". The meanings are totally different.

Nicky said:
I will post it when I am finished. I hope you all like it...I am kinda new at making things like this, but LOVE it...Ok here it is...please let me know what you think.
 
Nicky said:
Ok my next question is do we have to have it posted on everything or can we just make flyer that says something like if we have a bounced check then you are resposible for paying the bank fee and the product? I am in the process of making one now by the way.


I wouldn't post this information. It happens so rarely that I'd just deal with it on those occasions. And yes, I expect people to pay for any fees I've incurred from their bad check and have had them do so in the two times (in nearly six years) this has happened to me.
 
jrstephens said:
I am lucky. My bank only charges a fee if it overdraws my account. Luckily I have only had one bounced check and the girl called to let me know it was possible ahead of time and when it did bounce she bought me cash right on over the same day.

For those of you trying to collect, if you are not successful call you District Attorney's office. They will tell you the steps to go through and then if that is not successful they will prosecute to collect it for you and all the costs are taxed to the bad check writer - you do not pay a dime. Or at least that is how it works in Alabama. We have to do that at work some. You would think people would not write a lawyer a bad check!:eek: :D

This is great advice since I am also in Alabama. I am also curious to know which bank you use? THis question is for everyone who has the $10 or less fee because my one bounced check from a customer cost me $25!
 
  • Thread starter
  • #17
sailortena said:
Nicky, just want to let you know you spelled a word wrong in your flier.

It should say "ACCEPT" instead of "except". The meanings are totally different.

Sorry, I just type and spell check. I never even think about the words having different meanings. Anyways, I also sent it to my director and she wondered where I would put it and said she would change one thing about it so I changed it and I would put it in the flip top folder and go through it during the show. I am not so sure that I would ever have one, but I do not have a big show schedule and I am a stay at home mother, I DO NOT have the funds to pay for these charges. So I would pass the charges on to them.
 

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Frequently Asked Questions

What is a consulting fee for a bounced check in direct sales?

A consulting fee for a bounced check typically refers to a charge that a direct sales consultant may impose on a customer whose check has bounced due to insufficient funds. This fee is intended to cover the administrative costs and inconvenience caused by the bounced payment.

Can I legally charge a consulting fee for a bounced check?

Yes, in many jurisdictions, it is legal to charge a fee for a bounced check, provided that the fee is reasonable and disclosed to the customer beforehand. It is important to check local laws and regulations to ensure compliance.

How much can I charge as a consulting fee for a bounced check?

The amount you can charge as a consulting fee for a bounced check varies by state or country. Generally, fees can range from $25 to $50, but it is advisable to check local laws to determine the maximum allowable fee in your area.

Should I inform my customers about the bounced check fee upfront?

Yes, it is best practice to inform your customers about any fees associated with bounced checks upfront. This transparency helps maintain trust and ensures that customers are aware of the potential consequences of insufficient funds.

What steps should I take if a customer's check bounces?

If a customer's check bounces, first notify them of the issue and provide them with the opportunity to rectify the situation. You may request a new payment method and inform them of any applicable consulting fees. If the situation remains unresolved, consider following up with a formal notice or consulting legal advice if necessary.

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