I paid deposit $575 in March to hold my two children's positions. This provider agreed to hold them for two weeks. Also she explained it to me that it is refundable within two weeks. I canceled within 1 week and asked for refund,she told me to wait until April because she already spent my money. I waited for a month but no response. I called her today and asked about my money, she was upset and said "I usually don't refund deposit but I'll do this for you! But you need to wait until May!!" I was upset. I just want to my money back. I called State Agency but they told me to do small claim at court. Is it worth to take it to the court?

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We likewise suggest you use Small Claims Court. Usually there is a small fee and all of these expenses can be refunded through the court in your settlement. Also, Small Claims tend to favor you since the courts are usually one of your only recourse against a business. Make sure you also claim your time and interest on your money.

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you will have to have written requests for refunding the deposits before you go to court. i also recommend reiterating her replies example( As per our telephone conversation XX/XX/XX I have requesting a refund of my deposit etc. etc. etc. ) and I would mail it certified return receipt requested. also CC yourself and mail yourself one certified mail and don't open it. a lot of times a letter accomplishes what a phone call won't. Good luck

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My child's daycare required a full-month's tuition as a deposit which can be applied to my last month's tuition payment. Does anyone know what the Daycare does with this hefty deposit? Do they put it in an interest-bearing account until they receive the parent's 30-day notice? And if so, is that even legal?

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That is something you should probably ask your child care provider. As a business owner, I think they can choose to do whatever they want with the deposit but I could be wrong.

I guess I am not sure as I don't require deposits.

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I personally don't require a one month's deposit however I do require a 2 week deposit. It works the same as you explained however and when one of my client's give me a 2 week notice then the deposit they paid when they signed up will cover their final 2 weeks of care.

What it does is it buys the provider peace of mind because they know that even if a client leaves without notice they have that deposit to help them float by for the one-month (or 2 weeks or whatever time period the deposit is for). The provider can do whatever they wish the deposit once they recieve it as it no longer belongs to the parent.

The provider can put it in a savings or checking account at leave it there until the client terminates care, can put it into a CD account, invest it in the stock market, pay bills with it, go shopping, blow it in Vegas ... it really doesn't matter. As long as the provider provides the services for which it was intended she can do what she wishes with it.

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I can tell you want your money back. I would too! My advice is stay on it. Call the provider once a week and keep asking for the money. Even if she only gives you bits and pieces at a time. Try to work out a re-payment plan with her. Just keep pursuing her.

I had a daycare dad who owed me $500 for July 2011. His son came to care every day and dad picked up every other Friday. I worked it out with him that he would try and pay something every other week.Sometimes he paid other times he didn't. Small claims would have cost me more and trying to collect the money once the judgement is made is a whole other story. The mom paid me monthly starting last August. Long story short, finally last week on Wednesday he showed up and paid the remaining balance plus the daily rate fee. Although it took a while I got paid! Yes I could have just forgot about that one month of tuition. They were going through a divorce etc. But I worked hard for that money and pursued it. I don't think I would ever deal with a situation like this again though.

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