Late payment charge

[SonnysMummy]

I've decided to charge £5 a day late collection charge. At what point would you refuse to mind the child?

Kelly

[angeldelight]

We are all different remember and it is your business so your rules

I state that if I have not had fees with in 5 days of the due date then childcare is suspended until all fees and late fees are up to date

I have never had to enforce it though - and god knows what I would be like If it came to it ? I would prob be a right soft touch ha

Angel xx

[Lou]

I've decided to charge £5 a day late collection charge. At what point would you refuse to mind the child?

Kelly

not sure as its never come to that for me before but hopefully someone else can help x

[Pipsqueak]

Tough one to say when you would refuse to mind a child, it would always be best to check with NCMA before you do something like that anyway.

I state £5.00 per day late fees and then a letter and fresh invoice including late fees a week on saying that I will be forced to withdraw provision until fees bought up to date I suppose

[susi513]

As I understand it you cannot pursue for non-payment for the time you refused to care for the child. You need your contract to state that non-payment is grounds for immediate termination otherwise you can be sued for loss of earnings by the parent if you do not honour the full notice period in your contract.

Mine doesn't include this at the moment so my current procedure would be:
1 - issue reminder on day payment should have reached me, giving parent 7 days to pay up and adding in the late fees. (I put in that late fees will be waived if payment received in full within 24 hours, this usually is very effective)
2 - if parent hasn't paid up or reached an agreement with me within 7 days I would give notice (4 weeks)
3 - if the parent doesn't pay up then I can use the months deposit towards the outstanding fees but I would still be out of pocket by a weeks fees. (I get a months deposit which I keep til last day of childcare, less any outstanding fees).

So I need to add an immediate termination clause or reduce the amount of notice I have to give.

[SonnysMummy]

Ok, so i'm just thinking of every eventuality again...
If i said if after 7 days after payment was due i still haven't been paid i will withdraw my provision until fees and late charges are brought up to date...
What if they still don't pay while i have suspended child? Would i keep adding up fees that they should be paying me and the late charge on top?
If i have said in the contract that i will suspend my care of the child if payment isn't received 7 days after i should have it???

Kelly

[ma7ie]

I state if I have not received payment on the due date, I reserve the right to charge £5 for each additional day that the invoice remains unpaid. If I have still not received payment by the 7th day following the original invoice I reserve the right to cease minding your child with immediate effect and seek legal advice.

I have never had to enforce it either.

[sarah707]

As I understand it you cannot pursue for non-payment for the time you refused to care for the child. You need your contract to state that non-payment is grounds for immediate termination otherwise you can be sued for loss of earnings by the parent if you do not honour the full notice period in your contract.

Mine doesn't include this at the moment so my current procedure would be:
1 - issue reminder on day payment should have reached me, giving parent 7 days to pay up and adding in the late fees. (I put in that late fees will be waived if payment received in full within 24 hours, this usually is very effective)
2 - if parent hasn't paid up or reached an agreement with me within 7 days I would give notice (4 weeks)
3 - if the parent doesn't pay up then I can use the months deposit towards the outstanding fees but I would still be out of pocket by a weeks fees. (I get a months deposit which I keep til last day of childcare, less any outstanding fees).

So I need to add an immediate termination clause or reduce the amount of notice I have to give.

That is brilliant information thank you Susi!

[Monkey1]

i would add on £5 too for each day!

[Shirlwith3]

If I have not received fees within 3 days of the due date, I charge £10 per day till fees are paid in full.
I have found this works I have charged one of y parents twice for late fees & I have had thier child C just over a year now.
Shirl

[miffy]

I am weekly paid in advance so that doesn't usually happen to me

I have a couple of mums who still pay monthly and I invoice them with a date to pay by and a polite note on the bottom of the invoice to remind them that late payment charges of £5.00 per day will be added if they don't pay up - this has worked so far

Susi your explanation is great

miffy xx

[Twinkles]

I haven't yet got a late fee policy
I'm trying to get everyone to pay in advance and it hasn't been a problem.

[cloud9]

Just a warning guys about the late fee's. Even if a parent doesn't pay up you still have to provide childcare for the notice period. If you don't you would be in breach of contract and may also be sued by the parent for loss of earnings if you just refuse to take the child.
I'd follow the following procedure.
1) If on contracted payment day fee's are received ask the parent why.
2)Come to an arrangement as to when the fee's will be paid (e.g. 7 days)
3) If the parent doesn't pay up and you know you're being taken for a ride give the parent written notice to end the contract. State all outstanding fee's are to be paid by the final end date of the contract.
N.B. You may also end up working this period for no fee's but there isn't anything you can do about this.
4) If you still haven't received any fees at the end of the notice period you can then take legal action.

Hope this makes sense

[sarah707]

Just a warning guys about the late fee's. Even if a parent doesn't pay up you still have to provide childcare for the notice period. If you don't you would be in breach of contract and may also be sued by the parent for loss of earnings if you just refuse to take the child.
I'd follow the following procedure.
1) If on contracted payment day fee's are received ask the parent why.
2)Come to an arrangement as to when the fee's will be paid (e.g. 7 days)
3) If the parent doesn't pay up and you know you're being taken for a ride give the parent written notice to end the contract. State all outstanding fee's are to be paid by the final end date of the contract.
N.B. You may also end up working this period for no fee's but there isn't anything you can do about this.
4) If you still haven't received any fees at the end of the notice period you can then take legal action.

Hope this makes sense

That is great advice... thank you! Have you had a problem with this in the past?

[Tatia]

Excellent information from Susi and CI Matt. It's easy to assume because parents fail to pay they are in breach of contract and therefore we can terminate but it's not so black and white as that. Definitely food for thought so thanks for that!