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Parents and Guardians Forum>Unreasonable/Misnamed Holding Fees
Unregistered 03:11 PM 12-03-2016
Hi, I recently made plans to switch to a new daycare provider. I was told a few months ago that we had been selected as the best candidate from the waiting pool and that a spot would be open in early January. We gave a months notice at my current daycare provider and planned to have my child start on the agreed upon date.

When it came time to sign the contract in early December, the new daycare provider included a $2000 non-refundable holding fee (about one month's tuition) as part of the enrollment costs, in addition to a 2 week deposit and first month's tuition up front.

$2000 seems an insane amount of money to "hold" a spot that isn't even available yet, especially since it's non-refundable and won't be applied to any tuition costs. The provider is full and can't take my child until the date she gave us, so it's not like we are asking her to hold a space she currently has vacant.

Does this sound unreasonable, or is this a commonly accepted practice?
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Mike 03:49 PM 12-03-2016
That's a lot of upfront money. They may have their reasons though, and if that's how they work, you have to decide if you still want to go with them. If you decide not to, you better hope your current provider hasn't already filled your spot.
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Josiegirl 03:58 PM 12-03-2016
It does sound unreasonable to me, BUT we all, as providers, have different policies. So if someone agrees and signs to that affect, then they need to abide by it. It also depends on the area you live in. Around where I live, that would never fly. Maybe it's more common where you are.

I know over the summer, I told my teacher parent that if they wanted to maintain their spot in my daycare, they needed to pay me a non-refundable fee of 200.(for their 2 kids). I didn't want to find out last week of August that they had changed their minds.

Did you sign contracts agreeing to all of these monies upfront? I assume you weren't expecting that? They should have been more upfront with you about it. Good luck!!
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Blackcat31 09:01 AM 12-04-2016
Originally Posted by Unregistered:
Hi, I recently made plans to switch to a new daycare provider. I was told a few months ago that we had been selected as the best candidate from the waiting pool and that a spot would be open in early January. We gave a months notice at my current daycare provider and planned to have my child start on the agreed upon date.

When it came time to sign the contract in early December, the new daycare provider included a $2000 non-refundable holding fee (about one month's tuition) as part of the enrollment costs, in addition to a 2 week deposit and first month's tuition up front.

$2000 seems an insane amount of money to "hold" a spot that isn't even available yet, especially since it's non-refundable and won't be applied to any tuition costs. The provider is full and can't take my child until the date she gave us, so it's not like we are asking her to hold a space she currently has vacant.

Does this sound unreasonable, or is this a commonly accepted practice?
It can't be that unreasonable or unusual if the provider is full and has a waiting list.
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