Second Late Payment in 2 Weeks -- Next Step?

[DBug]

So I haven't actually had a late payment problem in quite some time. My contract says that if payment is later than 5pm on Friday, the late fee of $5/24 hours kicks in. My contract also states that I reserve the right to terminate care for reasons of (but not limited to) late payment or behaviour issues.

Dcd forgot his wallet last Friday and asked if he could bring his payment on the Monday. I said, "Okay, but don't forget to add $15 for the late fees." Dcm drops off and didn't bring it with her in the am, and I was completely prepared at pick-up to say that I wouldn't provide care until it was paid. Luckily, dcd brought it at pick-up.

Well, this week dcd took dcg away for the weekend on Thursday. I had his bill ready for him, and referred to it. He said that dcm would be in on Friday (yesterday) to pay. She didn't show, and around 5:45 I emailed her to ask when she'd be bringing it, and to not forget the late fee. I haven't heard back. Dcg won't be back til Tuesday, and my guess is that I won't see a penny until then.

From what I've picked up from these particular parents, I am seriously thinking that this may start to become a habit for them. I've got a mostly great group of clients right now, and I DO NOT want to go back to not knowing when I'm going to get paid (btdt, got the t-shirt).

So what should my next step be? Do I give them a red card (my version of a late payment reminder) along with a note warning them that the next time the late fees will increase? Can I even do that if it's not in my contract? Or should I just remind them of my right to terminate based on late payment and give them one more chance?

I totally understand forgetfulness, but I also know I need to make sure my bills are getting paid ...

[REWALKER04]

Is this a new family? or someone you have had for awhile? I would give them another chance maybe its just a fluke that it was two weeks in a row. They did pay monday the last time like you said so who knows.If it happens again or if you dont get payment on Tuesday I would just maybe right up a friendly reminder that payments are due on fridays and that it is important because if you dont have the payments you were expecting you may not be able to pay your bills on time. you can always use the example of how they wouldnt like it if there boss did not pay them on time and the hardships they would feel because of it!

[Mary Poppins]

No advice but I'm in almost the exact same boat. Payment due Friday, invoiced on Wednesday (per client's request - I usually invoice Thurs night) and nothing. Sent email reminder last night (my payment cut off is midnight Friday). Still no word.

This particular client has had issues paying on time a few times and I let it slide in the past but now? I'm not sure what to do. I HATE having to chase after $$ and I don't like to be a b*tch about it, but I feel I am at least owed an explanation or something so that I can decide if I'm willing to continue to work with her on paying a few days late when she's in a bind. The not hearing anything really p*sses me off!!

At least I make them pre-pay but it is still annoying and this is the sort of thing that takes the fun out of this job.

[Unregistered LYNN]

Let them know that you have noticed that they have been late already twice and you don't want this to become a habit. I would give them their invoice one week before and a reminder text the wed before payday (or a note in the child's bag). Friday morning just say "Did you bring payment" It is uncomfortable at first, but after awhile, most people just need a reminder. I forgot my dcp's money last week and felt so dumb. It was IN MY POCKET and I don't know what happened, but we got to chit-chatting and I walked out. I get to work and realize OH SHI+! I had her money. She called me out and said "I don't want to sound rude, but are you able to bring the payment today?" I said "YES and it's in my pocket right now. I am so sorry!" she laughed and said she understood that it was a hectic morning and figured I had just forgotten. That was on this past Monday. She's really cool about it. I paid her for FOUR WEEKS I didn't bring the kids during December (I lost my first job and was waiting for the 2nd to start) just to ensure my spot. This doesn't make me complacent or any less owing her the money, so as you can see, I just needed a reminder.

I was not offended, either. I doubt your parent will be either.

[bice99]

My parents all pay a month in advance, due on the 1st of each month. $25 per day late fee. No matter what their pay schedule at work is, after paying me at enrollment, they can just stash away the money with each paycheck to have it ready for the next month. It's only the first payment that's hard. I invoice the week before, and used to remind them for the check on the 1st. Now I figure it's their job to remember. Late fees if they forget. It's not like our mortgage company calls on the 1st to remind me to pay.

[Blackcat31]

I also have a late fee for late payments but I do it like this:

• 1st late payment has a $15 per day late fee attached
• 2nd late payment has a $20 per day late fee attached
• 3rd late payment has a $30 per day late fee attached

NO care is ever given without payment IN FULL. I would NEVER allow one parent to drop off and another to bring payment at pick up. Not one single minute of care is given without payment.

I have no problem turning someone away at the door if they do not have payment in hand.

If, for some reason, it progressed beyond the 3rd late time, I would fill their space and the family becomes a drop in family where care will only be available IF there is a space...which varies greatly from week to week, sometimes being up to a month before I have an open slot for a drop in.

I would NEVER use scenarios about the family getting their paycheck on time or how late payments effect my financial situation. NONE of that is relavant to the fact that the way I do things is the way I do things and the parent signed a contract agreeing to that method.

[Mary Poppins]

I also have a late fee for late payments but I do it like this:

• 1st late payment has a $15 per day late fee attached
• 2nd late payment has a $20 per day late fee attached
• 3rd late payment has a $30 per day late fee attached

NO care is ever given without payment IN FULL. I would NEVER allow one parent to drop off and another to bring payment at pick up. Not one single minute of care is given without payment.

I have no problem turning someone away at the door if they do not have payment in hand.

If, for some reason, it progressed beyond the 3rd late time, I would fill their space and the family becomes a drop in family where care will only be available IF there is a space...which varies greatly from week to week, sometimes being up to a month before I have an open slot for a drop in.

I would NEVER use scenarios about the family getting their paycheck on time or how late payments effect my financial situation. NONE of that is relavant to the fact that the way I do things is the way I do things and the parent signed a contract agreeing to that method.

LOVE THIS!!! I am revising my policies now to do it exactly this way.

[Abigail]

Dbug,
Is this a newer family? All my families are new and I have had to remind parents. I even had a parent ask if I cashed their check because something happened to their account and she asked if I would wait. I said sure, but this was because I literally was in the process of switching banks because i could never get to mine....it was a 20 minute drive and I worked the same hours as the bank and they were not open weekends so I had to switch. Now my new bank is only a mile away and they're open 15 minutes after I close and they're open Saturday morning! So excited!

I need to start sending out invoices or reminders. I just opened a month ago with 4 kids enrolled and almost all of them need to pay more towards their final two weeks or need to get me paperwork or something so I want to type something up soon to give out this week. My payments are due anytime Friday. I have a payment drop box that I'm going to put up this week and I'm going to make a sign that says PAYMENT DUE and post it above it. I just hope it works. So far parents have just left their checks in the morning or evenings with me or on the counter where I can see it. No big deal because no one picks up or drops off at the same time to see each other's check, but I look forward to having a drop box.

Do you use a drop box or where do parents pay you? I never enforced my first late fee since payments are due Friday by pickup. I don't want a parent to pickup their child and come back later to pay or it's late. I could set 5:00, but some parents don't pickup til later so I really don't care the time. I will bring all checks to the bank Saturday morning or Friday evening anyways. I have a T/TH child and they pre-payed their final-two weeks and the first week when they signed the contract so when it comes time to pay their regular weekly tuition they forgot since it was Thursday and I don't expect payment til Friday. I called Friday night and they asked when payment was due and on Tuesday when they came back they pre-payed for two weeks! Next time I'll just remind them on Thursday. I love my families!

[Ariana]

I do things a bit differently than most on here because I require post dates cheques upfront and then cash them. This way there is no way parents can "forget" to pay me. The payments are in 3 month intervals and are required the week before the last cheque is cashed.

Maybe start requiring post dated cheques from this particular family because of the past experience?

[Mary Poppins]

I do things a bit differently than most on here because I require post dates cheques upfront and then cash them. This way there is no way parents can "forget" to pay me. The payments are in 3 month intervals and are required the week before the last cheque is cashed.

Maybe start requiring post dated cheques from this particular family because of the past experience?

How unique! So they have no problem issuing post dated checks to you? What do you do with the checks if they terminate care? Do you give them back? Tear them up? Do they give you a deposit up front or do you keep enough of the checks to cover the last 2 weeks?

I would probably feel awkward asking for three month's worth, but that's just me. I do like this idea, though!

[Blackcat31]

How unique! So they have no problem issuing post dated checks to you? What do you do with the checks if they terminate care? Do you give them back? Tear them up? Do they give you a deposit up front or do you keep enough of the checks to cover the last 2 weeks?

I would probably feel awkward asking for three month's worth, but that's just me. I do like this idea, though!

I would check you state's laws about writing or accepting post-dated checks. I know this works for Ariana (which is awesome) but I would feel a bit uncomfortable accepting a post dated check as it can easily be cancelled or have s top-payment be placed on it. In some cases, it could even be written on a closed account.

I would be okay doing this if I knew the parent and already had a good and trusting relationship with them. I would NEVER do it as a means of protecting myself against loss of payment for services (I believe pre-pay is the ONLY way to 100% guarantee not losing there).

As a parent, I would never write a post dated check and would never enter into an agreement where post-dated checks were required (but that is just me, personally).

Besides checking with your state laws about this, you could Google it and read a bit about the safe and not so safe ways of accepting post-dated checks.

http://www.ehow.com/about_5214841_legality-postdated-check_.html

[Ariana]

How unique! So they have no problem issuing post dated checks to you? What do you do with the checks if they terminate care? Do you give them back? Tear them up? Do they give you a deposit up front or do you keep enough of the checks to cover the last 2 weeks?

I would probably feel awkward asking for three month's worth, but that's just me. I do like this idea, though!

This is how many providers do it in my area. I got this idea from another provider actually. The parents have no issues with it at all. If I terminate care then I give the cheques back or tear them up, it's their choice. I personally only ask for a deposit if there is going to be a considerable time period between when they request care and when care begins. Otherwise the post dated cheques are my 'deposit' for care. I cash the cheques after care has been provided, not before, so also a bit different.

In terms of 'stop payments' on cheques, technically anyone can do that when paying with cheques, whether it's upfront or post dated. Unless there is cash it's never a guarantee. The parents definately have to trust me that I won't cash a cheque when care is terminated but since I give the cheques back or tear them up it's a non issue. I don't see anyone going through the trouble of stopping a payment to get out of paying me either because banks charge a fee for that. If they did we'd end up in small claims court or I'd be out 2 weeks worth of care which could happen to anyone depending on your situation. At least I have the evidence of a post dated cheque to back up my claims that I provided them a service for a fee when they "stopped" payment" if I was to take them to court.

[Mary Poppins]

This is how many providers do it in my area. I got this idea from another provider actually. The parents have no issues with it at all. If I terminate care then I give the cheques back or tear them up, it's their choice. I personally only ask for a deposit if there is going to be a considerable time period between when they request care and when care begins. Otherwise the post dated cheques are my 'deposit' for care. I cash the cheques after care has been provided, not before, so also a bit different.

In terms of 'stop payments' on cheques, technically anyone can do that when paying with cheques, whether it's upfront or post dated. Unless there is cash it's never a guarantee. The parents definately have to trust me that I won't cash a cheque when care is terminated but since I give the cheques back or tear them up it's a non issue. I don't see anyone going through the trouble of stopping a payment to get out of paying me either because banks charge a fee for that. If they did we'd end up in small claims court or I'd be out 2 weeks worth of care which could happen to anyone depending on your situation. At least I have the evidence of a post dated cheque to back up my claims that I provided them a service for a fee when they "stopped" payment" if I was to take them to court.

Sounds like this works well for you! You are right about the risk of a stop payment happening to anyone and the only way to be safe is to run right down to their bank and cash the check immediately, no matter when it is dated.

At the moment, all of my parents pay online which works well for me. I am thinking of eliminating the check option altogether and just doing cash or online only. Preferably the latter since it leaves a paper trail and is just so darn convenient!

[Springdaze]

Take it from a dumba@% who is owed thousands......dont let it go!

[Ariana]

Sounds like this works well for you! You are right about the risk of a stop payment happening to anyone and the only way to be safe is to run right down to their bank and cash the check immediately, no matter when it is dated.

At the moment, all of my parents pay online which works well for me. I am thinking of eliminating the check option altogether and just doing cash or online only. Preferably the latter since it leaves a paper trail and is just so darn convenient!

I would love to have them pay online! Much more convenient for me, is it an automatic withdrawal or do they pay it manually themselves? Are they ever late with payments? How did you set this up? Thanks