Terminating contracts for non-payment

**sarah707** · 15-09-2008, 08:40 AM

After the discussions we were having about the Ncma policy on terminating contracts for non-payment, I decided to ask Morton Michel where they stand and I have now received their reply.

So... if a customer owes you money and is refusing to pay, what do you do?

This is the Ncma answer -

You may NOT refuse to offer childcare if a parent is in arrears. That leaves you open to be sued if the parent has to give up work because of it. If a parent gets behind in payment then what you should do is give them notice immediately and continue to offer childcare for the period of notice on your contract whether or not they pay you. Then, if they don't pay you and the debt is over £150, you can take it to small claims court. Of course, at any time during the notice period, if payment becomes current and you want to continue with the family, you can cancel notice.

This is the Morton Michel answer -

I can confirm that our Childminder policy will provide debt recovery advice to Childminders who take out our cover, the minimum amount that would need to be owing is £100. This would all be dealt with by our legal helpline who would advise the childminder of the steps they need to take (i.e letters to write) and if necessary appoint legal representation for them.

The legal standing of the childminder will depend upon the terms and conditions of their contract with the parent, but the Legal Helpline provided by the ChildMinder Policy is at their disposal to advise them of the correct course of action in the specific circumstances of their dispute. We should also point out that the Legal Expenses cover provided by the MM ChildMinder policy not only covers them for legal expenses in connection with negotiating for the childminder's legal rights in such a contractual dispute (provided amount in dispute is greater than £100), but also covers the legal expenses incurred in debt recovery (providing the debt is greater than £100).

There is no requirement under the Morton Michel policy for policy holders to use our contracts - they will still be covered for legal advice and expenses, therefore i would stress that each case would have to be judged on its own circumstances.

Hope this helps!

**Jules12Wed** · 15-09-2008, 08:43 AM

Great thanks for this advice. I am with MM but I have prepared my own contracts virtually the same as MMs but with a couple of added extras and also saves me buying them as I can just print them off my computer. (Anyone wants one then let me know).

But after all what has been said I was beginning to wonder whether I would be covered because I have not actually used the ones that they produce.

Thanks

**angeldelight** · 15-09-2008, 08:51 AM

Thanks Sarah

Glad im now with MM

Angel xxx

**miffy** · 15-09-2008, 09:01 AM

Well done for checking this out Sarah

Hmmn thinking of switching when mine's up for renewal

Miffy xx

**crazybones** · 15-09-2008, 09:09 AM

Thanks Sarah. I might switch next year too.

**PaulaR** · 15-09-2008, 09:36 AM

Does that mean that Morten give the same legal coverage as NCMA?

I am waiting for a court hearing, all with the help of NCMA over a debt that my mum built up. The services of the solicitors has been free but I have had to pay for the court hearing.

**sarah707** · 15-09-2008, 10:19 AM

Originally Posted by PaulaR

Does that mean that Morten give the same legal coverage as NCMA?

I am waiting for a court hearing, all with the help of NCMA over a debt that my mum built up. The services of the solicitors has been free but I have had to pay for the court hearing.

What MM are saying is that every case is different.

If you have any problems at all you contact them immediately and they will advise you on what to do next.

Yes, you are insured for all costs in case of a problem.

Sorry to hear you are having issues Paula... when does it come to court?

**PaulaR** · 15-09-2008, 04:53 PM

Sarah,
I've been waiting weeks now for a court hearing and I'm very scared at the thought of going to court. The lady was a freind whcih is why I allowed her to get behind. Plus I belived her when she said she would pay. I have a bounced check from her for over £1000 which is prrof that she was going to pay me. I was hoping we would sort it out before it got to court but doesn't look like it will. These things are sent to try us. It'll be aday out

**sarah707** · 15-09-2008, 05:06 PM

Really sorry to hear that Paula... it's dreadful when money gets in the way of friendships.

Don't worry about court... the ushers will walk you through it all.

Let us know how you get on. xx