Charging Late Payment Fees?

[wejo928]

Ok I am doing my January bills for parents & I have a question. I never charged late fees on payments until Jan 1, 2010. I put on my policy $1 a day late fess.

My question t you is she had her $5 copay due on the 5 th, 11 th, & 18 th so far.
So I understand the $1 a day for the 1 st week. But now she sis not pay week 2 either so do you charge her $1 a day for 1 st week and $1 a day for send week wich is $2. a day? or just $1 a day. Now week 3 was not paid so still only $1 a day or $3 a day for each week.
She is a CCIS or Title 20 family. So I still get paid the majority of money. She only has to pay me $5 a week. If she woould pay me the $5 on the 25 th that would pay for the week due. Their policy says all payments made must be used towards current payment always.

So how do all you handel this.

She does have a balance outstanding but I let her ride cause she last year paid me up when she got her income taxes. And I am ok without the $5 a week but it is rediculous she can pay $30 for McD's but says she does not have the money for my copay.
She does bring her supplies on time. (diapers, wipes, formula, babyfood and tissues)

She is always ontime with pick-up & drop-off cause we provide transportation. Wich there is a fee added to her monthly statement for that now also.

Thank you for all you help.

[gbcc]

Personally, I think you are too flexible therefore allowing parents to take advantage of you. This is how my policy goes. $10 per day beginning on the day payment is due (Friday). Come Monday the original fee plus the $30 in late fees are due before the child is allowed to return to care. If the fee is not paid the child may not attend care and the $30 late fee will continue to accrue until day 10. On day 10 parent will be assessed a early termination fee (2wks payment $260), late fees will cease and court papers will be filed for original amount owed, $100 in late fees, $260 early termination penalty, and all court related cost including but not limited to lawyers, filing fees, and time missed from work.

Harsh, but no one has tested it!

[momma2girls]

Personally, I think you are too flexible therefore allowing parents to take advantage of you. This is how my policy goes. $10 per day beginning on the day payment is due (Friday). Come Monday the original fee plus the $30 in late fees are due before the child is allowed to return to care. If the fee is not paid the child may not attend care and the $30 late fee will continue to accrue until day 10. On day 10 parent will be assessed a early termination fee (2wks payment $260), late fees will cease and court papers will be filed for original amount owed, $100 in late fees, $260 early termination penalty, and all court related cost including but not limited to lawyers, filing fees, and time missed from work.

Harsh, but no one has tested it!

I also have a $10.00 a day late fee, inc. Sat. and Sun. as well. I used to have $5.00 per day, and I had families that would pay it- so I increased it to $10.00 per day. Also if they do not pay, they do not return, If I have to seek payments thru the courts, they are responsible for all of that as well.

[tymaboy]

I agree you laye fee is very low. I also charge $10 a day. I also have where if they dont pay in 3 days they can not return until it is paid in full.

[originalkat]

I charge a $5 per day late fee

If they dont pay by Wednesday, they cant come back until they do.

[Carole's Daycare]

I also have a $10.00 a day late fee, inc. Sat. and Sun. as well. I used to have $5.00 per day, and I had families that would pay it- so I increased it to $10.00 per day. Also if they do not pay, they do not return, If I have to seek payments thru the courts, they are responsible for all of that as well.

Same here, $5.00 was not enough deterrent to skipping payday.
If your client is on county pay through welfare, paying their copays is required to continue receiving assistance. You need to charge your $1 per day for every day after the copay was due for the 1st copay, and continue to do so, and charge $1 per day for the second copay that was due. You may need to tell her to pay up or she can't drop off.

[Crystal]

I have $10 late fee too, but in 13 years have never had to enforce it.

[Carole's Daycare]

I have $10 late fee too, but in 13 years have never had to enforce it.

Wow! That speaks well of your families, and also that clients know you mean business. Congrats!

[MarinaVanessa]

So how do all you handel this.

I have a clause in my policy handbook which is used in conjunction to the contract. If you are late 1 day or 2 weeks or $1 or more I simply do not accept the child. I love it when new parent's pull the old "Oops I forgot my checkbook" routine. My reply "Oh, do you have your debit card on you? I accept credit cards." (I use the credit card function on PayPal and charge the % extra that PayPal charges but it's better than my $5 a day late charge) . If they "forgot my purse" then they have to go back and get it. I charge in advance of care so that I never get stiffed for non-payment. Payment for the following week is due at the time of drop off or I simply don't accept the child. I have them sign that they agree to this.

In your case, follow what you stated in writing. If it says $1 a day then it's $1 a day. You can't charge $2 a day for the 2nd week that they don't pay if you don't have it in writing. And always, ALWAYS give notices in writing and have them sign and keep the original. I accept subsidized payments also and if there is a co-payment and it is not paid, it is still a late payment.

Here is my late-fee policy at it reads: (for those that are curious)
"If tuition fees are not paid in full, care will not be provided for your child. There is a $20.00 initial late payment fee if tuition is not paid by 6:00 p.m. on the Monday that your payment is due. A $5 additional fee is added for every day thereof that your payment is late. These charges will be in effect and care will not resume until all monies plus late charges are paid in full. Persistent late payments are grounds for termination."

[sweetcinna]

I started at 10 a day but quickly changed it to $25 a day. In my contract it states that I am to be paid on Friday no later than 6pm. A $25 a day late payment fee will be assessed if your fee is not paid on time, and your child may not be accepted until your fee is paid, except under special circumstances, prearranged and agreed to by provider. Parents will also be responsible for ANY and ALL fees including and not limited to, $25 a day late fee and all court costs incurred as a result of non-payment.