Parent's Won't Pay??

Collapse
X
 
  • Time
  • Show
Clear All
new posts
  • Unregistered

    #16
    alternative to court

    a friend of mine works for a company called transworld systems. they offer a third party profit recovery option. depending on the size of your daycare, this could be a great option. it costs an average of $10 per account (which is less than taking them to court) and you can set it up from anywhere with internet access. btw my friends name is allison http://www.web.transworldsystems.com/elpaso/

    Comment

    • lilbiddapopcorn
      lilbiddapopcorn
      • Aug 2008
      • 75

      #17
      Just...my input

      Originally posted by DinTx
      At enrollment I require payment for the last week of care, a $50 annual supply fee, and $30 one-time Registration Fee; this in addition to the fee for the first week of care. I do allow them to payout the last week, supply fee, and registration fee upon request. I require a 3 week notice, the last week has already been paid at enrollment.

      My parents pay on Friday for the upcoming week. No payment by Monday morning, no care.

      Even with my policies I have lost money too, but not enough to bother with the hassle of taking them to court.
      If they write a hot check and don't make it good, you just report them to the local police. You won't get your money, but a warrant will be issued for their arrest and it will remain on their record. My parents have to pay with money order or cash if bad checks become chronic.

      Now, here's what you can do and has proven effective for many a provider. It's easy, but you may not get the money owed you quickly. Depends on the time of year.
      If the amount of money they have paid you is significant, they will call you around the first of the year requesting a W-10 for tax purposes. Refuse to provide it until they fulfill the terms of their contract. Works like a charm.
      If your parents provide a port-a-crib or other equipment, as mine do, withhold that as well until payment in full has been received. I have acquired several expensive pieces of equipment this way, which were equivalent to the money owed.

      Providers should require references from potential clients. They expect references from us, and we're heavily scrutinized. The prospective client should be as well, imho.
      I agree with most of what you said about the payments, but in most states it's illegal to hold someone's things until they pay unless you're an actual storage facility...

      Comment

      • Unregistered

        #18
        I offer a discount to parents who pay in cash on Monday mornings (just a dollar or two). This way I don't have to mess with any bouncing checks and so forth. I have the client sign a contract stating that if they do not pay on Monday they will pay the entire rate. Then If they do not pay me on Friday they receive a 25.00 late fee in addition to their child not being accepted the following week.

        Comment

        • MissLisa
          Senior Member
          • Dec 2008
          • 20

          #19
          Originally posted by Unregistered
          a friend of mine works for a company called transworld systems. they offer a third party profit recovery option. depending on the size of your daycare, this could be a great option. it costs an average of $10 per account (which is less than taking them to court) and you can set it up from anywhere with internet access. btw my friends name is allison http://www.web.transworldsystems.com/elpaso/

          IN MY OPINION ONLY!!! "TRANSWORLDS SYSTEMS" I wouldn't recommend them to ANYONE. I have had a large day care center for 10 years. I signed on with transworld 2 years ago...and they have NOT collected ONE PENNY for us. ZIP.... ZILCH.... NADA!!! We turned in OVER 70K in outstanding debts.... yes... you read it right....over 70K.

          They have notified us on many of the files submitted that they were unable to locate so they terminated the collections...and I see the parents on the street every day... so I told them to come visit me for a day and I can show them where they are... so why couldn't they locate them?

          Also they terminated collections on many and just said "Uncollectable"... WHY NOT.... Thought part of the service they were to offer is to collect through the courts if need be? Well.... they have NOT collected a penny for us out of 70K.

          I hope someone else has had better luck with this company than we did.

          As a final note:
          It has been a tough turn around because the parents have been used to me being a softie... but slowly and surely they are finding I am serious... Plus I have my personal Bouncer....Mr. Marty...... that helps keep me on track when I start to waiver.

          I have tried to work with the parents going through rough times over the years and can agree that working with your head will pay the bills before working with your heart.

          Comment

          • Unregistered

            #20
            Originally posted by Unregistered
            I just need to throw this out there and see what you guys think...in the past 6 months I have had 2 families where the parent got layed off their jobs and just called and said their child would not be coming to daycare anymore. No notice or anything. I require a 2 week notice. And they will not pay their balances. One parent is really mad about my rule on if your child misses daycare on their scheduled day I still charge 50%, so she refuses to pay her last 2 week bill, although she signed a contract where the rule was stated. The other parent just isn't paying for whatever reason. Both balances are under $100, so I'm not sure it's worth taking them to court. It's just very annoying. How do you guys handle non paying parents? I have been doing daycare for 19 years and have only had to take 1 parent to court. Thanks.
            .
            .
            .

            If we all remember, get paid in advance! Having a 2 week notice policy, doen't mean they will. Many parents can/will skip out. Every one of my parents pays in advance (8) and I have 1 parent that qorks nights and I let her pay biweekly.
            It seems like it has to be the same everywhere, but maybe not. In my state, a parent getting daycare assistance can cry wolf about something (they are affraid for their child's well being or whatever) and they can terminate daycare with out 2 weeks notice, a provider must give 2 weeks notice or they don't get paid for the full month authorized from daycare assistance contract from the state.
            I had 1 parent I terminated with out notice (they were being difficult, not cooperating, cussing in front of the kids, attitudes, etc...). The mom was the contracted parent with me ans the state (the dad illegally lived with her while she got welfare, daycare assistance, etc... for being a single mom living on her own). 1 month earlier, I told the dad he could no longer come pick up smelling of liquor, so he gave 2 weeks written notice (they have 3 small kids and couldn't find daycare), they came right back and asked if they could stay (I said yes). She asked if I could take more off what she paid (in 3 yrs. I lost over $4000 from her - money she she owed to hold 1-3 of her kids spots while looking for a job, on maternity leaves (only counting when I couldn't fill spots with drop ins), out sick with back problems) 1 month later the issues were piling up (slamming doors, cussing, attitudes). The dad made an ugly scene, I kept calling the mom to discuss (either termination or the dad no longer coming), the calls were ingored. I did *67, she answered and hung up on me. I packed up their belongings and terminated right then. Since she was terminated, she lost her deposit and all money paid is nonrefundable (per my contract - I always go out of my way for parents and rarely terminate, but my contract is clear - if my contract is breached or policies are not followed, I can terminate without notice). She called me 3 times after termination (I didn't answer to avoid escalation). The messages were harrassing and incriminating.
            The director of daycare assistance said I couldn't get paid for the rest ot the month, since I terminated (normally if a child doesn't come the full month, you still get paid, unless you terminate without notice).I told her I would call her and put the moms messages in her voicemail (I called her voicemail from my cell and played her messages that were on my home phone), the director heard what she said and along with seeing her previous terminayion letter, she paid me (over $700). In many cases, a parent won't pay when terminating, they skip out.
            Make sure you get paid in advance, even daycare assistance parents pay their portion of daycare in advance. Parents will say they don't have money, but they will pay. They have to bring their daycare assistance authorizationcontract on the first when due. There are many providers that are really firm on policies (pay before care id provided, authorizations, sick kids, etc...). Deposits are a good idea, but make sure you keep them in a seperate account and don't spend them.
            Good luck

            Comment

            • leadhead15717

              #21
              In this business for some reason people think we should be treated differently than the utility companies, credit card companies and so on,
              I have heard I had to pay the rent, the electric bill ect which infuriates me!!
              Take the deadbeats to small claims court, no amount is too small,
              Add the filing costs to your total and file it. when you win and you will if the judge agrees to payments they will make them and if not go back to the court and ask for an execution action. Then they will have a sherrifs sale of their personal property and if your state allows attachment of wages.
              Also as a show of support report the deadbeats to your fellow caregivers in your area so that they do not get stung also.

              Comment

              • Courtney

                #22
                I charge a 2 week deposit, which is what pays for their 2 week notice. No refund. So if they don't give a 2 week notice, that is their money down the drain.

                I require payment on Friday for the following week. No check when they come in Monday morning, no daycare. $15 per day late fee. NSF is a $25 fee, plus the late fee applies back to the day the payment was due. So if a parent pays on a Friday, the check is returned on Tuesday, that is already $85 tacked on. AND I require cash payment indefinitely from that point on.

                I have only had a couple incidents, but I always am quick to point out that this is a business, and it is also my livelyhood. I ask them how flexible they would be if THEIR boss didn't pay them on time. I ask them how it would affect them and their family if they didn't get paid.

                I haven't had to take anything to court, but I hope things go better for you from here on out!

                Comment

                • HomeSweetHomeDaycare
                  Daycare Member
                  • Dec 2008
                  • 8

                  #23
                  I make everyone pay in advance anymore just to avoid this. Then if they do just up and walk away, my only issue if finding someone to fill there spots....

                  I was doing the deposit but that be came a problem if they left then Id have to come up with the money to give them back. I know I should have saved it, but Im not a good saver so I was always spending it. Anyways, the pay in advance works so much better now!!

                  Comment

                  • Unregistered

                    #24
                    parent wont pay me

                    I have a parent whos child i have been watching for the past four months and owes me 1800 dollars !!! what should i do??? please help. I am not a licensed daycare only a babysitter. PLEASE HELP!!!

                    Comment

                    • seashell
                      Senior Member
                      • Apr 2009
                      • 180

                      #25
                      Originally posted by Unregistered
                      I have a parent whos child i have been watching for the past four months and owes me 1800 dollars !!! what should i do??? please help. I am not a licensed daycare only a babysitter. PLEASE HELP!!!

                      If you have a signed contract and can prove she owes the money, you can take her to small claims court or you can hire a collection agency. They will take 1/3 but they do all the work.

                      good luck

                      Comment

                      • Unregistered

                        #26
                        Two Weeks Notice

                        Well I'm not a registered daycare, but I do watch a few families. Well one of my families just up and decided to pull their child out. WASN'T going to even call me or anything.
                        So I find out their not bringing their son back, only by me calling and trying to figure out where the child is.
                        So any how to ge to to my point, I have contracts with my families, to try and avoid any issues that may come my way. Well DOESN'T help. I state in there that they must giveTWO (2) paid weeks notice. Well I had mentioned it to the parents. Now ironically they won't take my calls or anything. I have left them e-mails and text messages REMINDING them about the contract. I told them I wanted the payment by a certain time as it's stated in the contract they were suppose to pay it as they decided to pull their child out.
                        So my question is.. can I take them to small claims court since I have contracts, even though I'm not a registered daycare?

                        I read some of your peoples messages, and no people you care for DO not think of the fact that we have all the same bills as them. It's pretty sad that they can take advantage of people taking care of their child. People now a days just are for themself...

                        Comment

                        • sweetcinna
                          Senior Member
                          • Mar 2009
                          • 43

                          #27
                          Originally posted by Unregistered
                          Well I'm not a registered daycare, but I do watch a few families. Well one of my families just up and decided to pull their child out. WASN'T going to even call me or anything.
                          So I find out their not bringing their son back, only by me calling and trying to figure out where the child is.
                          So any how to ge to to my point, I have contracts with my families, to try and avoid any issues that may come my way. Well DOESN'T help. I state in there that they must giveTWO (2) paid weeks notice. Well I had mentioned it to the parents. Now ironically they won't take my calls or anything. I have left them e-mails and text messages REMINDING them about the contract. I told them I wanted the payment by a certain time as it's stated in the contract they were suppose to pay it as they decided to pull their child out.
                          So my question is.. can I take them to small claims court since I have contracts, even though I'm not a registered daycare?

                          I read some of your peoples messages, and no people you care for DO not think of the fact that we have all the same bills as them. It's pretty sad that they can take advantage of people taking care of their child. People now a days just are for themself...
                          If you have a signed contract with them........I would have no futher contact with them and i would take them to court to file a small claims case doesn't cost that much and no you don't have to be a reg. daycare provider........you have a contract.

                          Comment

                          • LeadershipConnection
                            Daycare.com Member
                            • May 2009
                            • 7

                            #28
                            Tuition Collection Conference Call Recording

                            There's a great conference call that you can listen in to at:



                            The guests share frustrations and solutions to common problems related to collecting tuition. There's even a handout you can download posted.

                            Julie Bartkus

                            Comment

                            • Unregistered

                              #29
                              I think it's silly to ask for a deposit. Even public daycare systems don't do that. I know in the area that I live, nobody will agree to pay a deposit and I don't think that's the right thing to ask someone to do anyways. I have been providing childcare from my home for going on 4 years now and I have all of my parents pre-pay every Monday....no exceptions. If they can't pay on Monday, I do not allow their child to come. You have to put your foot down! Rules are rules! I provide meals and snacks which are included in my weekly fee, so obviously, I need to get prepaid in order to feed the kids. Small claims court is a pain to deal with and it takes forever. If you aren't owed too much money, then you might just have to take the loss unless you feel like dealing with the whole court deal. I think most daycare providers ask for a 2 week notice when parents will be pulling their child from care, but it doesn't always happen that way and unfortunately, daycare providers get stiffed when that happens. All you can do is make sure that you have parents sign appropriate forms about the rules of your business, and hope that they follow and respect them. Again, small claims court is an option if you feel like dealing with it!

                              Comment

                              • Texasjeepgirl
                                Director Licensed Care
                                • Jul 2008
                                • 304

                                #30
                                You do not mention where you are located...
                                May I suggest becoming a REGISTERED USER of our forum...

                                I actually 'got' the idea of beginning to charge a deposit from an area CHILDCARE FACILITY handbook.
                                The fact is, if a parent understands completely that the deposit you are charging them will cover the last two weeks of childcare, IF they give 2 week notice of withdrawing their child...they are glad to pay it.
                                I allow my parents to pay their deposit out...if paying it in full is a financial burden..
                                I've had parents do both..
                                Enroll...and pay the 2 week deposit, IN FULL...and the first week of childcare...I've also had parents pay it out $5 or $10 per week...
                                Either way, once it's on my ledger sheet...it's there, until they give 2 week notice.
                                The parents that do not want to pay it, are the parents that will want to walk off with NO NOTICE...or...an outstanding balance.

                                17 years of experience...

                                I do charge in advance of care, due Friday in advance of the following week.

                                How many of you have had a grandparent...or friend...or other authorized person to pick up the child ...pick up on Friday...no check for the following week..
                                Then on Sunday night the parent calls and says...OH...by the way...
                                we're moving/I lost my job/my mom is going to keep my child for me..OR MANY OTHER 'valid' reasons for leaving with NO NOTICE...
                                No payment..No notice..

                                Charge the 2 week deposit.
                                QUALITY PARENTS will pay it.
                                I can't even begin to tell you how many parents have told me that they respect me MORE for my business policies..
                                I am currently THE ONLY provider in my town that requires a 2 week deposit.
                                I've been charging it for 7 years now...
                                They all told me I'd ruin my business by 'attempting' to implement that policy...
                                so far ... It's only been a BLESSING
                                Last edited by Texasjeepgirl; 06-22-2009, 11:35 AM. Reason: duplicate words

                                Comment

                                Working...