What is a reasonable late payment fee?

**venus89** · 18-07-2009, 03:27 PM

My problem parent often pays late. She wants me to care for her child during the hols even though I'm not contracted to so I'm drawing up a temporary contract for the holidays and I'm considering adding a late payment fee to deter her from mucking me around over the holidays, especially as we've had to go out and buy a new car this morning so I can have her child.

I was thinking £5 per day. Is this too much?

Also, what kind of fee would you add if a cheque bounces?

**PRINCESSDAISYFLOWER** · 18-07-2009, 03:36 PM

when does she pay you? Beginning of the week? end of the week?

**venus89** · 18-07-2009, 03:37 PM

Originally Posted by taniar82

when does she pay you? Beginning of the week? end of the week?

Whenever she feels like it

In theory at the end of the week but it can be anything up to 2 weeks late.

For the summer, I am going to say that I want to be paid on Friday for the week just passed

**Daftbat** · 18-07-2009, 03:42 PM

If they are that late paying i would be asking for payment up front or else you won't be taking the child on. Write it in the contract too.

**venus89** · 18-07-2009, 03:46 PM

Originally Posted by Penny Cartledge

If they are that late paying i would be asking for payment up front or else you won't be taking the child on. Write it in the contract too.

My husband said that too but in all honesty I am positive it would make no difference to her. I think she'd still pay late

**littlepixies** · 18-07-2009, 03:56 PM

I have had this problem... i issued a £5 a day late payment charge...when issuing her the letter explaining why i ahd to put this in place.. with her owing me £300 already.. she ripped the letter up in my face and took child out of my care! nice eh!!!!

So i always make sure its clearly stated in paper work and get parent to sign as a agreement so this never happens again

**venus89** · 18-07-2009, 04:00 PM

This is the draft of the letter I'm writing......

Your father has informed me that you wish me to continue to care for ***** during the Summer Holidays.
As you are aware, I am not contracted to care for ***** during the holidays. I therefore need you to sign and return to me a temporary contract for the next 7 weeks before I can care for him.
Please note that I will not be working from Monday 3rd to Tuesday 11th August inclusive. I will not be able to take Harry on Friday 21st August.
I will charge my standard £50 per day. I expect to be paid in full on Fridays (or the Tuesday/Wednesday of week beginning 17th August). Fees not paid on time may incur a late payment fee so if you are having difficulty meeting a payment please contact me to advise me. If you pay by cheque and the cheque is returned, this will be treated as non-payment and may also be subject to a late payment fee. Late fees will be added to your next invoice and will be expected to be paid with the invoice.
You or your parents are very welcome to drop ***** round late/pick Harry up early on any particular day but please ensure that I am aware of this in advance. Please note that Megan’s gymnastics classes do not run during the holidays so I will expect ***** to be picked up by 6pm at the latest.
Whilst I am very happy to be caring for ***** in the holidays I would ask that in future if you would like me to do so you contact me personally and with reasonable notice so I can plan our holiday activities accordingly.

**The Juggler** · 18-07-2009, 04:09 PM

tell her no payment upfront, no care during the holidays. I know this is hard when you might need the money. I would insist on a standing order set up to my account in advance weekly or monthly from now on. It's the only way to get round the excuses, I forgot, cashpoint out of order etc.

Good luck.

**balloon** · 18-07-2009, 08:04 PM

I'd go for payment up front, especially if this parent is a bad payer. I also say no payment = no care, no excuses!

I have just had one parent take me for a total ride. £35 in late fees and no payment for the week. I'm just glad i didn't let her pay monthly in arrears!!! Needless to say I terminated immediately (still in settling period but it will be written into future contracts thanks to this parent!)

No cheques either!!!

PS You left the child's name in that post in 2 places!!!!

**Chatterbox Childcare** · 18-07-2009, 08:07 PM

I would also put a sentence in whereby if the cheque bounces and you class it as unpaid that the £5 per day late payment fee will be back dated to the due date.

**wendywu** · 18-07-2009, 09:27 PM

If she is that bad about money i dont think i would be buying a new car on the strength of her business.

**tashaleee** · 18-07-2009, 10:31 PM

Ive had a problem with a bad payer like that in the past - the only way I could get it through to her was no money = no childcare. I even once told her to take her child with her and come back with the money and I would be more than happy to continue with our day - she did and always paid without fail after that....

**grindal** · 19-07-2009, 05:50 AM

If you are worried about a bouncing cheque why not stipulate in your contract that you want payment in cash?

**newandlearning** · 19-07-2009, 06:54 AM

I would say during the summer holidays you would like all payment up front as this is part of the holiday procedure. I asked my summer parents to pay by bank transfer or to give me a cheque 3 days before the due date so I had time to clear it.. if she's not happy with this ask for cash.. or a £100 upfront to cushion any non-payment. I think if the money isn't in your account by say the Wednesday after the Monday (due date) then charge her a fiver.

I'm sure you've probably already tried talking to her.. I think it would be good to tell her what you would like and then see if you can reach an agreement.

Good Luck!

**Daftbat** · 19-07-2009, 07:50 AM

Originally Posted by Penny Cartledge

If they are that late paying i would be asking for payment up front or else you won't be taking the child on. Write it in the contract too.

My husband said that too but in all honesty I am positive it would make no difference to her. I think she'd still pay late "Quote"

It would make ALL the difference if you stick to your guns and don't take the child if you don't get paid up front.

**jaja** · 20-07-2009, 02:40 PM

I charge £5 per day late fee and if a cheque bounces then £10 and wont accept it again, i know how frustrating it can be xx

**The Juggler** · 20-07-2009, 04:08 PM

Originally Posted by tashaleee

Ive had a problem with a bad payer like that in the past - the only way I could get it through to her was no money = no childcare. I even once told her to take her child with her and come back with the money and I would be more than happy to continue with our day - she did and always paid without fail after that....

wow that is brave. good on you.