What is the Restocking Fee?
The restocking fee is a fee that is assessed against a non-paying bidder in the event that they have failed to complete payment for an auction 30 days following the initiation of a collection. This fee is designed to help bring closure to the transaction on the part of the seller, thus allowing them to re-list their item and find a new, honest buyer. In the meantime, the collection agency will collect this restocking fee on behalf of the seller, to help compensate for any holding or transaction fees they have incurred as a result of the non-payment on the part of the delinquent bidder. The bidder will receive a letter that alerts him/her of the assessment of the restocking fee, and the procedure they must follow to relieve themselves of this debt.
