Refusing care for non-payment. How does it work?
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  1. #1
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    Default Refusing care for non-payment. How does it work?

    If you refuse care for non-payment of fees do you charge for the days that you don't have the child?

    A parent pays weekly in advance but hasn't paid for next week. If I refuse care next week would you expect to be paid for it or do you write it off? I've never needed to refuse care before so I'm inserted to know what others do.

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    AFAIK you cannot charge while the service is suspended, unless you have it specifically written into the contract or agreed policies. Certainly there's no provision for it in the Pacey contracts I use.

    All you can charge is the standard late payment fee, and even this could be disputed if/when you have to get legal support to recover any outstanding monies. It has to be considered a "reasonable" charge, whatever that means in law.

    Contact your insurer. They will expect you to mitigate the loss, so they'll advise on how to do this.

    There should be a line in the contract stating you can give immediate notice after X-days' non-payment. You may want to write to the client, reminding this and noting the date that will apply. Something like, "if full payment is not received on [date] I shall be obliged to issue immediate notice as of that date." Remind them all fees will remain payable after the child leaves your care, plus late charges will continue to accrue until full payment is made. Stats that you are obliged to put the matter in the hands of your legal support team, who may use all appropriate means of debt recovery. If this results in a CCJ it msg affect their future ability to raise credit.

    I don't know if you do this in your area, but local childcare providers round here share details of non-paying clients. That way we don't all get stung by parents who think they can flit from setting to setting, leaving a trail of bad debts behind them.

  3. #3
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    AFAIK you cannot charge while the service is suspended, unless you have it specifically written into the contract or agreed policies. Certainly there's no provision for it in the Pacey contracts I use.

    All you can charge is the standard late payment fee, and even this could be disputed if/when you have to get legal support to recover any outstanding monies. It has to be considered a "reasonable" charge, whatever that means in law.

    Contact your insurer. They will expect you to mitigate the loss, so they'll advise on how to do this.

    There should be a line in the contract stating you can give immediate notice after X-days' non-payment. You may want to write to the client, reminding this and noting the date that will apply. Something like, "if full payment is not received on [date] I shall be obliged to issue immediate notice as of that date." Remind them all fees will remain payable after the child leaves your care, plus late charges will continue to accrue until full payment is made. State that you are obliged under the terms of your insurance to put the matter in the hands of your legal support team, who may use all appropriate means of debt recovery. If this results in a CCJ it msg affect their future ability to raise credit.

    I don't know if you do this in your area, but local childcare providers round here share details of non-paying clients. That way we don't all get stung by parents who think they can flit from setting to setting, leaving a trail of bad debts behind them.

  4. #4
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    Thanks Bunyip.

    I didn't intend charging for any time they had to stay away, or even any late fees, but was interested in what others do. It occurred to me that if a parent wanted a week off they could not pay, be excluded for a week until they do, then come back as normal! A bit of a drastic way to get a week off without paying but it seemed a possibility!

    My family have made a partial payment and we've got an agreement to drop a day until they can sort finances out. I do feel sorry for them as the cause of their money problems is beyond their control, but I need to put my business head on. I know there's not point letting them build up a debt that they'll never be in a position to clear.

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  6. #5
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    ive got a non payer at the moment.

    Because i charge upfront i feel awkward chasing the fees but late is late i guess

    They just wont communicate when they will pay so im getting dribs and drabs but never know when i may get it. I dont wanna terminate the contract because i feel they are genuinely struggling (albeit handling it badly) and i need the money even if i get it late!

 

 

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