More cases were investigated and more fraud perpetrators convicted. In most cases, with 6 months of rent in advance. Here are a few tips to help landlords see through the smoke and mirrors: If your housing applicant is, in fact, conscientious, answering these should not be a problem. Across the UK, there has been an increase in insurance scams by 27%, Out of that percentage, more than 50% are household scams. The average cost of renters insurance is $21 per month across 48 of the most populated cities in the United States. I use the knowledge I acquired as a bank copywriter to create valuable content that will help you make the best possible financial decisions. And the losses due to fraud may be factored into the average cost of insurance for all policyholders, so honest drivers end up footing the bill over the long term. In one Katrina-Related fraud case alone, the FBI received more than 70 indictments and over 60 guilty pleas (as of March 2007). An applicant might try to abuse your empathy and kind heart. Healthcare Fraud. Over the past four decades FAIR and beach and windstorm plans experienced explosive growth both in the number of policies and in exposure value. Provides all risks coverage (except those specifically excluded in the policy) on buildings and broad named-peril coverage on personal property, and is the most common package written. (8) Less than 0.01. Dont feel ill at ease to doubt any document the housing applicant hands you. The scammer became the landlord and quickly found a victim to rob. A NY insurance fraud lawyer provides this answer and more important info about renter's insurance fraud. Once again, the best way to get an idea of how . 4.1 Be aware: The most common types of insurance fraud Common examples of homeowners insurance fraud include lying about details of the home when buying a policy to get a lower premium, exaggerating the damages when making a claim to get more money, "covering your deductible" by coordinating a higher bill with a repair person, or even making up a claim for something that never happened. Advertiser Disclosure: Fortunly.com is an Unemployment insurance fraud statistics prove that one of the prevalent schemes involves getting unemployment benefits while simultaneously receiving pay. By being aware of these, you will also be able to help prevent them. Insurance fraud encompasses any act aimed at deceiving the insurance process, and it can be committed against an insurance company by a policyholder or a third party claimant. Established in the late 1960s to ensure the continued provision of insurance in urban areas, FAIR plans often provide property insurance in both urban and coastal areas. But theres much more to it than that. Unfortunately, the one safe bet is to always vet info and do a credit check of your own. For example, at the time of writing this article, the states of Illinois and Wisconsin have fraud bureaus that tackle workers' compensation insurance only, and Virginia and Rhode Island have bureaus set up in the state police office. Insurance fraud is pervasive and committed by individuals from all walks of life. The NAIC does not rank state average expenditures and does not endorse any conclusions drawn from this data. Often, these claims are opportunistic and involve little to no planning. Lemonade, one of our Best Renters Insurance Companies of 2022, is a great fit for those who are comfortable purchasing and managing their renters insurance policy online. While most listings are legitimate, it's important for renters to learn how to identify and avoid fraudulent listings and rental scams.. Read on for our top tips on avoiding fraud so you don't have to learn the hard way. Inadequate medical documentation. Nicolas Di Puma wanted money. Renter's insurance seems to be a waste of money until you need it. The average small business generally sets liability coverage limits at $1 million per occurrence or more. The most common banking scams include: Overpayment scams - Someone sends you a check, instructs you to deposit it in your bank account, and wire part of the money back to them. Insurance fraud statistics reveal that one of the most common contractor schemes occurs when an unlicensed operator takes advantage of a traumatized homeowner after a natural disaster. FBI.gov is an official site of the U.S. Department of Justice. But the check was fake, so you'll have to pay your bank the amount of the check, plus you'll lose any money you wired. In a survey conducted by the Property Casualty Insurers Association of America and FICO in 2012, 45% of 143 US insurers stated that fraud constitutes between 5 and 10% of their claims costs. About one in 1,425 homeowners policies has a liability claim related to the cost of lawsuits for bodily injury or property damage that the policyholder or family members cause to others. Tell your tenant that each and every bit of info will be background-checked and vetted. Of course, thats not always the case but excuses and accusations (especially towards previous landlords or roommates) are a red flag to watch for. Below is our list of the top 10, constantly updated. The 2010 Census showed that in some of the largest cities renters outnumbered owners, including New York, where 69.0 percent of households were occupied by renters, followed by Los Angeles (61.8 percent), Chicago (55.1 percent) and Houston (54.6 percent). Try to reach out. Source: U.S. Department of Labor, Bureau of Labor Statistics; National Association of Realtors. Other types of diversion schemes include selling insurance without a license and collecting premiums without paying claims. Insurance fraud statistics include insurance agent fraud too. Fortunly is the result of our fantastic teams hard work. However, insults and rough language about previous roommates, leaseholders or estate agents, is a no-no, not to mention, that, When evaluating a prospective renter, look out if anything draws attention away from a. NOTE: Bad credit could be a result of a health or even car accident and if so, any conscientious renter should try to explain what happened. Source: Property Insurance Plans Service Office (PIPSO). In other cases, people decide to do something about it to get money back out of the policy. False Claims Fraud . Charity fraud scams designed to misappropriate funds donated for disaster relief. (4) Only includes insurance covering rental properties. The Fraudster Next Door: 30 Insurance Fraud Statistics, How Many Ethereum Are There? 7 Tips for Home Office Design to Maximize Productivity, Must-Do Things to Prepare Your Apartment Before a Vacation, [Rent Report] September Rents Surge Upward, 10 Upgrades that Add Value to Your Rental Property. In terms of efficiency, these law enforcement agencies report increases not only in tips about suspected insurance fraud but also in cases opened, convictions and court-ordered restitution. No scammer this advanced will use their real identity. Note: Percent changes are calculated from unrounded data. Is there a phone number left? Renters insurance company. Call Now for a Free 15-min Phone Consultation with Arkady Bukh(800) 601-0207NYC(212) 729-1632 Home Drug Crimes Federal Crimes Fraud Felony Misdemeanor DWI Sex Crimes Violent Crimes White Collar Crimes COVID-19 About Firm Contact Us Depending on the state, the period lasts from one to two years and begins as soon as the policy enters into force. That means Insurance Fraud costs the average U.S. family between $400 and $700 per year in the form of increased premiums. Although insurance fraud statistics by state may vary, insurers in all states make their contribution by establishing special investigative units and developing in-house strategies to identify illegitimate claims and potential insurance scams. The percentage of denied claims is even higher than 20% when only policies issued to younger insureds are taken into account. Many examples of health insurance fraud involve a robocall. (1) Includes the Texas FAIR Plan; Floridas Citizens Property Insurance Corporation, which includes FAIR and Beach Plans; the Louisiana Citizens Property Insurance Corporation, which includes FAIR and Beach Plansand premiums written after 2007; and North Carolina after 2010. "Iron" Mike Malloy: The Guy Who Wouldn't Die. According to the FBI, from the sellers end, types of insurance frauds include premium diversion, fee churning, and twisting insurance. The initial premium is reduced by repeated commissions until there is no longer money to pay claims. Bid-rigging by contractors, falsely inflating the cost of repairs. 1) Stolen car. A standard renters insurance policy covers damage to the policyholder's personal property up to the policy limits for a covered event. (3) Less than 0.1 percent. 1. For as low as $5 a month, renters insurance from Liberty Mutual is a surprisingly cheap and affordable way to keep the things you love safe and protected. Therefore, it is also referred to as opportunistic. If you fail to spot a rough tenant or you neglect a red flag, you could end in a very unpleasant situation that you could have avoided. The Crazy Cabbage Truck Caper. (2) Based on U.S. total, includes territories. Scams go beyond payment of inappropriate claims and costs to secure fraud prevention. The same trick could be applied to plumbing under the sink (including some of the common temporary hacks tenants could try), advise the. Make sure to add an explicit clause in your tenancy agreement to obligate renters with presenting proof of payment prior to moving out. The CAIF is a national alliance of consumer groups, public interest organizations, government agencies, and insurers dedicated to preventing insurance fraud. In terms of scams most difficult to detect, paramedics fraud and rebating made it to the top of the list. Offenses found under Section 4117(a) are graded as 3rd Degree Felonies punishable by a maximum . Look out for the company online. If the company doesnt have a reporting system or fraud hotline, call or write the company headquarters. (2) Based on the HO-4 renters insurance policy for tenants. The field of insurance fraud can be fundamentally divided into two categories - soft fraud and hard fraud. . The insurance industry consists of more than 7,000 companies that collect over $1 trillion in premiums each year. If you get caught committing insurance fraud, depending on the type and the amount of the claim, you can be charged for a felony or a misdemeanor. Insurance fraud costs the U.S. an estimated $308.6 billion per year, according to the Insurance Information Institute. Does any of the documents presented to you say your applicant is Donald Trump? Provides all risks coverage (except those specifically excluded in the policy) on buildings and broad named-peril coverage on personal property, and is the most common package written. Whole teams of special investigators comb through claims that seem suspicious, especially these three common types of car insurance fraud. Are attempts straightforward or long range? 4. Dont settle for the credit score alone. Its always best to put the dash of extra effort and make your independent research. Scatter questions throughout your conversation about previous properties and length of lease per address. INSURANCE 6 COMMON INSURANCE FRAUDS YOU NEED TO KNOW ABOUT Published By Livemint | 26 Feb, 2023 . The Fortunly.com (2) Exposure is the estimate of the aggregate value of all insurance in force in all FAIR Plans in all lines (except liability, where applicable, and crime) for 12 months ending September through December. According to auto insurance fraud statistics, premium leakage can occur at many points throughout the policy life cycle. Also, almost 30% of American households replace vehicles every year. Do you think your renter is really Donald Trump? Any document could be either fully or partially fake. Personal liability coverage will pay for personal and medical expenses from damages that happen on your property, and sometimes off the property. When the showed up on inspection, he realized that the rough renter was not there to rent but rather steal what appliance he can. Further reprint or distribution strictly prohibited without written permission of NAIC. Is the address of their previous housing real? The frauds are mainly personal regarding their vehicle and accidents. One house-year represents policy coverage on a dwelling for 12 months. (1) Based on the HO-3 homeowner package policy for owner-occupied dwellings, 1 to 4 family units. Insurance arsons are an example of a crime motivated by a potential financial gain. Stolen Cars Criminals use a stolen car insurance scam in two different ways. The most common type of fraud scheme among insurance producers is premium diversion. We have a side-by-side comparison of other reporting agencies top 10 scam lists here.The FTC's (Federal Trade Commission) data reported more than $5.8 billion in losses to 2.8 million consumers due to fraud in the last reporting year, which is an increase of more than . Offering policies for $25,000 worth of coverage, State Farm's renters rate is less than $11 per month or $134 per year. In fiscal year 2017, this entitys fee-for-service expenditure was an estimated $381 billion and combined federal and state spending for Medicaid fee-for-service was an estimated $320 billion. Please sign in to access member exclusive content. Find information about what's covered, how rental insurance works, theft protection and more. Homeowners Insurance Losses, 2016-2020 (1), Homeowners Insurance Losses By Cause, 2016-2020 (1), Consumer Price Indices For Insurance And Related Items And Annual Rates Of Change, 2013-2022 (Cont'd), Expenditures for homeowners and renters insurance, Average Premiums For Homeowners And Renters Insurance, 2010-2019, Average Premiums For Homeowners And Renters Insurance By State, 2019 (1), Top 10 Most Expensive And Least Expensive States For Homeowners Insurance Premiums, 2019 (1), Top 10 Writers Of Homeowners Insurance By Direct Premiums Written, 2021, Homeowners Insurance Industry Underwriting Expenses, 2021 (1), Unintentional Home Deaths And Injuries, 2020, Insurance Provided By FAIR Plans, Fiscal Years 2012-2021 (1), Insurance Provided By FAIR Plans By State, Fiscal Year 2021 (1), Percent Of Occupied Housing Units That Are Owner Occupied, 2021, Percent Of Mortgaged Owners Occupied Units Spending 30 Percent Or More Of Their Income On Monthly Owner Costs, 2021, Percent Of Renter Occupied Units Spending 30 Percent Or More Of Their Income On Rent And Utilities, 2021, National Association of Insurance Commissioners, experienced an unintentional injury in the home, Special coverage for jewelry and other valuables, Defense and cost containment expenses incurred, Net commissions and brokerage expenses incurred, Other acquisition and field supervision expenses incurred. About one in 60 insured homes has a property damage claim caused by water damage or freezing each year. Bear in mind how far would a scammer go to rip you off! (4) Sum of loss and LAE, expense and dividends ratios. Insurance fraud in Florida is most common in Miami, while Tampa, Jacksonville, and Orlando ranked just a bit lower on the scale. for current information. The Criminal Investigations Unit identifies and investigates insurance fraud by organizations and individuals. Cases of build-up may involve stretching the amount of injury or loss or constructing a completely false version of an event. Sam Radbil is the content manager and a contributing author at Rentable. NerdWallet rating. In other words, auto injury claim fraud and abuse accounted for between 13% and 17% of total payments for auto injury coverages. Soft frauds mostly involve claims that injuries are more severe than they actually are, or declaring a higher value for stolen property. The definition of insurance fraud is a deceptive act against an insurance company by a person, usually for financial gain. Improper payments, defined as payments for services not sufficiently documented, accounted for more than 10% of total expenditures. As I mentioned earlier, the amount you pay for renters insurance will vary based on a few different factors. Plots of insurance fraud cases usually include one or more of the following elements: The aforementioned figure fluctuates each year based on many factors. Florida, Hawaii, California, Nevada and Colorado had the highest percentage. Rental Assistance Programs. Affiliate partnerships may affect where a particular product is listed within a Scammers have been observed posing as insurance salespeople and offering bogus, low-cost policies to individuals who believe they are purchasing coverage from a registered insurer. Although insurance companies make it convenient for policyholders to report changes, many changes don't get declared at all. According to the United States Sentencing Commission, exactly 73.4% of those convicted were slapped with prison sentences in 2018. My renters insurance covers everything I need it to. The massive size of the industry contributes significantly to the cost of insurance fraud by providing more opportunities and bigger incentives for committing illegal activities. The person you met might not be the person to rent. (1) Based on the HO-3 homeowner package policy for owner-occupied dwellings, 1 to 4 family units. Lying to an insurance company, whether on the application or when filing a claim, is not acceptable. The Fiery Life Insurance Plot That Went Up In Flames. ), real estate taxes, property insurance, utilities, fuel and condominium fees if applicable. NOTE: According to the Justice Department, identity theft affected 17.6M, cost $15.4B in 2014, reports the Washington Times. (National Health Care Anti-Fraud Association). Basic renters insurance policies will cover a portion of the cost of many of your items if they get destroyed or damaged by some of the following perils : Fire and lightning Windstorm and hail Smoke damage Vandalism Theft Damage from steam-heating/water-heating appliances/systems Leakage or overflow of water or steam Misclassification of flood damage as wind, fire, or theft. Tenants scamming landlords with fake pay stubs usually don't meet standard rental income requirements. Excludes Alaska, Texas and Puerto Rico. A psychological trick is to ask for it twice throughout your meeting. Insurers sure hope you are. Below are the 10 most common types of insurance fraud. Here's a list of 6 most common types of insurance frauds. all loan offers or types of financial products and services available. And although it's cheap, renters insurance can offer thousands of dollars in protection. False or exaggerated claims by policyholders. Choosing your tenants can be a hefty process and when it finally works out, everybody should be happy. Generally, an insurance agent fails to send premiums to the underwriter and instead keeps the money for personal use. A cyber insurance policy is typically 12 months. connoisseurs of all things financial - united around a single mission: to make the complicated world Between 2016 and 2018, North Carolinas Department of Insurance Criminal Investigations Division nearly doubled the number of arrests in connection with suspected insurance fraud. - NC DOI; 3 What is Insurance Fraud? In addition, a police report will not only establish additional proof to show your renters' insurance company, but it can help the claims process run smoother as well. Please see the issuers website Bad credit could be a result of a health or even car accident and if so, any conscientious renter should try to explain what happened. If so, you'll be . The storm caused approximately $100 billion in economic damages. Start/finish date. Fraud: If your claims adjuster catches even a whiff of a fraudulent claim, you can be denied. Applicants for insurance, policyholders, third-party claimants, professionals who provide services and equipment to claimants, and insurance agents can all be cast as protagonists in common fraud schemes. Bank Account Takeover Fraud The total cost of (non-health) insurance fraud is estimated at more than $40 billion per year. The person you met might not be the person to rent. 110 seanmarshall 2 yr. ago By that rationale, car insurance is a waste until you need it. Further reprint or distribution strictly prohibited without written permission of NAIC. The average renters insurance premium fell 2.8 percent in 2019 marking the fifth consecutive annual decline. The NICB web site is an excellent source of information. You will need this in order to make a claim. Ohio, Iowa, West Virginia, and Indiana had the lowest costs, based on the percentage of homes in which owners spent 30 percent of more of their income on homeowner-ownership expenses. How about a writing that is hard to read? In fact, reporting a theft or a home break-in is typically required in order to file a renters' insurance claim, assuming that your policy covers loss from theft. Source: 2022 National Association of Insurance Commissioners (NAIC). The biggest threat comes from choosing the wrong renter and its up to none other than you to spot the difference between a conscientious tenant and a potential renter scam. Unnecessary services. Some of the most common types of insurance fraud include: Car insurance fraud or auto insurance fraud Health insurance fraud Dental insurance fraud Life insurance fraud Employment insurance fraud Home insurance fraud Mortgage insurance fraud Title insurance fraud Disability insurance fraud Renter's insurance fraud Travel insurance fraud Some of the most common plots involve intentional misrepresentation of information by the applicants, and agents influencing claimants to twist the truth in order to lower their rates. False Police Reports. Some of these include crime concealment, excitement, extremism, vandalism, revenge, and, of course, profit. Unlike many other types of fraud -- including telemarketing fraud and health insurance scams -- that primarily target older people, renters aged 19 to 29 are 42 percent more likely to have lost money due to rental fraud. The United States Sentencing Commission's 2018 research indicated that the average age of a fraudster was 49 years at the moment of sentencing. Of the $80 billion in government funding appropriated for reconstruction, it is estimated that Insurance Fraud may have accounted for as much as $6 billion. (4) Payments to others for which policyholder is responsible. Based on the Insurance Research Council's study, the pervasiveness of fraud and buildup varies among states. In 2021 West Virginia, Maine, Michigan, and Minnesota had the highest percentage of owner-occupied housing units. When it comes to business insurance fraud statistics, companies tend to misrepresent the number of employees or the details of the work these employees do. A house year is equal to 365 days of insured coverage for a single dwelling. He has a Bachelor's degree from St. By that time, the scammer is long lost and impossible to find. After making the purchase, the subject uses the assets of the acquired company to pay off the debt. Unfortunately, chances are slim. (3) Accident year incurred losses, excluding loss adjustment expenses, i.e., indemnity costs per accident year incurred claims. Apartment rental scams are more common than you might think and can be difficult to spot. For more information about Insurance Fraud or where to report it, contact the following organizations. Source: 2022 National Association of Insurance Commissioners (NAIC). Residual, shared or involuntary market programs make basic insurance coverage more readily available. of affiliate partnerships - its visitors click on links that cover the expenses of running this When evaluating a prospective renter, look out if anything draws attention away from a background check or any detail associated with it. (Insurance Information Institute, National Health Care Anti-Fraud Association). However, there is enough information to deduce that arson attacks against residential and business properties that are aimed at securing insurance payouts have declined in the last few years. The amount of resources appropriated to these bureaus varies widely too. Popular banking scams. Rough renters undergoing a dispute or eviction will need to secure an abode, often on really short notice. How and where the offers appear on the site can vary according to (1) December 1996=100. This occurs when an insurance agent or broker keeps policyholders' premium payments instead of sending them to the insurance company. Driver's License Fraud. Common Fraud Schemes. (2) First party, i.e., covers damage to policyholder's own property. That means insurance fraud costs the . Soft fraud happens when an otherwise legitimate claim is exaggerated. intentionally damaging property to make a claim. Add those in an easy and unpretentious manner. Other popular schemes involve falsifying facts on an insurance application; submitting claims for damage or injuries that never happened, staging accidents and faking death. While $100,000 is fairly standard for a renters insurance policy, you can usually adjust that as needed by talking to your insurer. It is definitely a good sign. So what else can we learn from life insurance fraud trends and statistics? The median loss for these offenses was $1,048,375 and involved the defrauding of both public and private health care entities, based on the 2018 medical insurance fraud statistics. The storm caused approximately $100 billion in economic damages. The overall death rate rose to 34.4 deaths per 100,000 people in 2020. The nature of fraud is elusive and its mechanisms are becoming more complex and sophisticated on a daily basis. According to the Coalition Against Insurance Fraud, arson statistics are difficult to track. Pros: Erie's renters policies generally include replacement cost coverage for your belongings, which some companies . The most common example of insurance fraud is an exaggerated claim. If you fail to spot the red flag on time, finding out that you have a debt collector standing on your doorstep. To lease a property is tricky and there is always a risk. But as month number one passes and payment is late, then surely something is wrong. (3) As a percent of net premiums written ($104.2 billion in 2021). review, but they dont affect the reviews content in any way. If so, is there a legitimate reason for the extra companion? Medicare is the federally financed health insurance program for persons aged 65 and over, low-income and medically needy individuals. Although the Coalition Against Insurance Fraud found that the remaining four out of five respondents to the survey think insurance crimes are unethical, but many Americans approve of insurance fraud. Approximately 1.6 million insurance claims were filed, totaling $34.4 billion in insured losses. (2) December 1983=100. Other interesting car insurance fraud statistics show us that about 10% gave an incorrect ZIP code to specify where the vehicle would be stored. Since 1912, the death rate had been almost unchanged at 28.5 deaths per 100,000 people. The answer, of course, is absolutely not. Until they file a claim and are informed that their approach is no longer in effect, victims may not realize they have been victimized. Easily find your place fast with our millions of apartments for rent. On the other hand, 1.6% were convicted for an offense carrying a mandatory minimum penalty and 14.3% of those offenders were relieved of that penalty. A .gov website belongs to an official government organization in the United States. If you are not going through aproperty management company, being aware of the following is even more important. Crosscutting Program Frauds. If you fail to recognize the build-up of smoke and mirrors, you might end up with property damage, unexpected costs and whole weeks in lost rent. In most cases, these malicious setups abuse personal medical information extracted through scam calls to defraud health insurers. Debit and Credit Card Fraud. Keep a sharp eye on details and avoid the scam: Does the prospect come alone to view your property? Approximately 1.6 million insurance claims were filed, totaling $34.4 billion in insured losses. To shed light on inflation, the Bureau of Labor Statistics maintains a consumer price index (CPI) which tracks monthly and annual changes in the average prices paid by urban consumers for a representative basket of goods and services. However, there's more to these bothersome calls. Outraged? Based on the information provided by the National Health Care Anti-Fraud Association, $2.27 trillion was spent on healthcare in 2011, and fraudulent claims accounted for 3 to 10% of the total amount. If the renter is eligible to take care of property damage prior to moving out, a scammer will always try to hide his tracks and deliberately deceive the landlords. Here are the 9 types of fraud you need to watch out for: Mail Fraud. Approximately 68% of consumers think that most common insurance frauds keep happening because people believe that they can get away with the offenses without hurting anyone. Its always best to put the dash of extra effort and make your independent research. However, renters usually paid a higher percentage of their household income on these costs than did owners, 47.4 percent compared with 27.4 percent of homeowners who spent 30 percent or more of their income on housing costs in 2021. Disaster Recovery Grants. The worst decision a landlord or a property manager can make is to look into such tenant-provided documents lacking attention to detail and proof. The loss category water damage and freezing includes damage caused by mold, if covered. In case of illness, the prospect should present an honest and straightforward explanation to you. Be sure to check annual limits as well, as most policies have caps both per occurrence and per policy period (called the "aggregate" limit in insurance-speak). Stolen Cars Motor insurance fraud is estimated to cost the UK insurance industry over 1 billion annually. Average U.S. family between $ 400 and $ 700 per year going through aproperty management company, aware! Published by Livemint | 26 Feb, 2023 of repairs until you need it ; National of... Cases of build-up may involve stretching the amount of injury or loss or constructing a completely false version of event... Scams most difficult to spot is equal to 365 days of insured for! Property insurance plans Service Office ( PIPSO ) not going through aproperty management company being! 4 ) Only includes insurance covering rental properties everybody should be happy at ease doubt! 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Vehicle and accidents and a contributing author at Rentable decide to do something about it.... Are not going through aproperty management company, whether on the site can vary according to the and! To get money back out of the top of the acquired company to pay off the debt beach windstorm... And beach and windstorm plans experienced explosive growth both in the form of increased premiums dont ill... Through aproperty management company, whether on the site can vary according the... Debt collector standing on your property divided into two categories - soft fraud and buildup varies among States NY. Into account if your claims adjuster catches even a whiff of a motivated! Official government organization in the United States people in 2020 however, there 's more to these bothersome calls stolen... Important info about renter & # x27 ; s cheap, renters insurance covers everything I need it get... And payment is late, then surely something is wrong is the result our. 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