Bounced Checks

[Kenny]

What is everybodies policies on bad checks? I just received my first one from a family. Thanks

[MarinaVanessa]

This is what's in my contract:

"Returned Checks
There will be a $25.00 charge for all returned NSF (Non Sufficient Funds) or SP (Stopped Payment) checks and your child will not be cared for until tuition and fees are paid in full.
If a NSF or SP is issued the tuition amount as well as any fees incurred will be due immediately and in cash or in the form of a money order and checks will no longer be accepted from your family."

If you don't have a written policy though I don't believe that you'll be able to charge an extra fee for a NSF check. Pretty much my policy is - if you give me a bad check you owe me the payment + the $25 FEE + any fees that I get from my bank (mine is $33). Keeping this high prevents people from giving me bad checks because they know that it'll cost them at least an extra $58. If you don't have a contract or policy you can have them pay you the amount and ask for the bank fee that you got charged. I wouldn't take care of the child until this was paid but that's up to you. After the first bad check I get I don't accept checks anymore from that family.

[emosks]

NSF CHECK FEE: In the event of a check not clearing, you will be responsible for any fees that our bank charges plus an additional $25. Should this happen you will be required to pay in cash for the following 6 months.

[GretasLittleFriends]

I haven't had any issues with this yet... but here's what my policy says:

A $25.00 fee will be charged on returned checks and only cash will be accepted thereafter, and you will pay all my fees if it causes me to have bounced checks. Accounts that are 30 days late will be sent to collection.

[TGT09]

Straight out of my handbook
**If your check is returned for insufficient funds (regardless of the reason) you will be billed $35.00. The NSF fee plus tuition are due in full by cash for that week. If this happens more than once in a 6 month period, you will be required to pay cash for the next 3 months.

[gkids09]

When I get a returned check (and it's only happened a couple times), I require the family pay me in cash the full amount of the check, plus the bank's fee, plus a $5 fee to me for the trouble. I also give them three times. Yes, I realize things happen sometimes and checks bounce. But after three times, they MUST pay in cash every time they pay me. I have one after school family who has to do this. Other than that, everyone can pay with checks. I feel like I've been lucky, because I've heard of a lot of people who have had major problems with this in my area!

[MarinaVanessa]

I feel like I've been lucky, because I've heard of a lot of people who have had major problems with this in my area!

Yes I feel lucky too because it hasn't happened to me yet and accepting payment in advance I think also has an effect on this for me. Families know from the start that if they bounce a check that's it, no more checks. They have to pay the amount they owe, the $25 fee and any charges that my bank charges me and it has to be paid before I start watching their kids again. I guess I'm strict about this because I feel that yes, it happens but it's up to them to make sure that they have funds in their account. All of my families pay cash already anyway except a for just one and I just wouldn't want to deal with that hassle of a bounced check. I used to not allow checks and just receive cash only but it made it easier for this family and so I wrote up a policy about it. I see it as a privilege for them to pay with a check so I guess I feel like one chance is enough.

[momma2girls]

It's really funny this was posted, because it happened to me over the weekend with a family. THis is my 4th time in over 6 yrs. it ****s!! Here is what my contract reads- THere is a $30.00 charge for any returned checks, after one check is returned for nonpayment, payment will be on a cash only basis. Also you are responsible for any other returned check fees associated with your bounced check, inc. mine.

[missnikki]

The only thing I have to add is that I give once chance, after that I accept cash, money order or cashiers check. Strictly cash can be dicey unless you are able to cut a receipt on the spot. (money orders and cashier's checks are as good as cash, they buy them with their funds and the issuer makes it out to you.) That way, you have a paper trail on both your ends of what was paid just like with a check.

[SunflowerMama]

I charge a $35 fee per bounced check and after the 2nd bounced check go to cash only.