Late Fees

[littlemissmuffet]

What do you charge for late fees?

I often see $10/day here and I think that's way too low. Mine is $45/day after 9am (used to be $30/day after 5pm) the day fees are due, and I think even that is too low. However, I hardly ever have parents pay late (MAYBE three times in the last 3 years?).

I see some providers here charge just $10/day and continue to have parents pay late... I wonder if the late fee was much heftier would the parents start paying on time?

Overall, I find it incredibly upsetting that so many providers have such a difficult time getting paid and on time

[blandino]

I am $15.00 a day. Due Friday for the following week. No care will be provided on Monday without payment, and on Wednesday if payment still isn't received then your spot is filled.

I don't have too many payment issues. Have charged one late payment fee so far this year, and that was to the crazy/failure to thrive/tylenol doping/ wrong bottle proportions mom.

[EntropyControlSpecialist]

Due BY Monday morning at 7:00 AM (they all pay online) or a $20.00 late fee is attached AND their child cannot attend that day (day begins at 8:00). Their child cannot attend at all until the late fee and the tuition are paid in full.

I've had ONE parent pay late and that was an oversight on their part as they abide by all of the policies and always have. They were so apologetic and it hasn't happened since. I have waived ONE late fee and it was truly deserved (plus, payment was 5 minutes late LOL).

[Blackcat31]

Overall, I find it incredibly upsetting that so many providers have such a difficult time getting paid and on time

I agree.

But, I only charge $10 per calendar day late fees....HOWEVER,

my late fees are on a graduated scale like my rates.

First late fee: NO services (until ALL money paid if full) + $10 per calendar day late fee

Second late fee: NO services (until ALL money paid in full) + $20 per day late fee

Third late fee: NO services. Ever. Termination.

Late fees for me are purely ornamental.... I'd rather just not have to charge one so in reality, if a family wants to have a good working relationship with me, they simply need to pay on time...every time.

I DO understand when something comes up or the odd glitch here and there but it only feeds my empathetic side and has NO bearing on the financial side of my business.

Now that being said....I have waived a late fee here and there over the years (3 times to be exact) and ALL of those times were at MY discrepancy and MY choice to do so. All 3 instances were also involving long term families and situations that were just not likely to ever happen again....kwim?

[Patches]

Mine is $15/per day. Due on Monday morning for the week. I've head one dcm that always wanted to pay late and all my others have had no issues

[clep]

Mine is $50.00 payable before care resumes. Three times of late payments and the family is termed. If a parent came to me to communicate they needed to pay a few days late I don't charge the fee. That is only for those that can remember to bring their child to care but can't remember to pay for it.

[littlemissmuffet]

I also will not care for the child until payment (including late fees) is paid in full. Day 3 (or 2 if it's a real problem family) I terminate.

I also will not allow a single family to continually pay late. As with late pick ups - three strikes you're out.

[daycare]

my late fees are as follows..

1st late fee, if there was zero communication then I charge $50.00, must be paid in full before services are rendered.

2nd late fee is $100.00 and same as above

I have never gotten past that......... I have only ever charged a one time late fee for a few families.

Just like BC, I have waived late fees for some families but they are ones that have been with me for years.

I just had a family pay me late two times in a row, only have been here for 3 months. Lets just say that they are NOT happy at all..... If it happens again, which I doubt they will, then I will term.....

[daycarediva]

I charge $20/day, then $50/day, then term. Payments are due Friday by 6, and the late fees+ tuition are due IN CASH or they don't have daycare.

I need to add in that they forfeit their space after 48 hours of non payment or something in my next contract update. That way I can get out of the contract to replace a non paying family.

WWYD with that families final due balance? Charge the two (or whatever) weeks' notice you required? Just what they owed the day they were replaced? I would still take them to court to recoup the losses if they didn't end up paying... hmmm

[daycarediva]

Also side track; under what circumstances have you waived late fees? I hear so many sob stories sometimes.

[daycare]

Also side track; under what circumstances have you waived late fees? I hear so many sob stories sometimes.

I only do it if they have created a good payment history with me....more than 6 months and if it is not always being asked.........

I don't care what your issue is....I will only do it once........

[MyAngels]

Well phooey. Again I'm the odd man out. I don't charge a late fee. For whatever reason, at least in recent memory, my families pay on time. Sometimes even early. I did have a bounced check once, though, so technically that's late, but I didn't charge anything, since my bank didn't charge me anything.

After reading so much good information here I keep thinking I should add these fees, but then I worry that that might encourage someone to be late (either picking up or paying) if they don't mind paying for it and I don't want to tempt fate.

[daycare]

Also side track; under what circumstances have you waived late fees? I hear so many sob stories sometimes.

I had a family that always paid on time....One friday (pay day) in the morning they called me and said, we are so sorry to have to put you out, but my mom fell last night and we are out of town with her, could we pay you on Monday.......

Of course I said yes....they had been with me for a year and NEVER paid late. They called, were respectful and said that they would pay on Monday. Everything worked out according to plan and it never happened again.....

Now if you give me a huge sob story every Friday, have not created a good payment history with me, then I will probably say NO.

[Play Care]

Also side track; under what circumstances have you waived late fees? I hear so many sob stories sometimes.

Family has to be with me for *years* with GREAT history. If I've had them for 3 years and they have followed policy to a T, and something comes up, that's one thing. Someone who has been here for a month or two? They pay a late fee

[daycarediva]

I ask because I had a family go on vacation recently. They have been here 6months and we have had some minor issues (removing child's sick days from pay and essentially making up their own rate) and dropping off early/picking up late. They told me about their vacation, I told them they were still required to pay. Dcm asked if she could give me a postdated check since they were going to be absent on a Friday and I said sure, that way you will avoid late fees.

Day of dck's last day before vacation, Mom says she forgot her checkbook, she will have dcd drop if off. Needless to say they were emailing me all day Friday and upset I didn't respond 'promptly' (um, working here!) and asked if they could pay the following Tuesday. I said yes, and quoted them the late fees due at that time. She had her brother in law bring me cash instead and I got an earful about how it 'wasn't fair' in dcm's email.