Daycare.com Forum
Daycare Center and Family Home Forum>Refund for Terminating?
professionalmom 09:31 AM 06-07-2010
I had a DCM that came twice for interviews, once with the dad and DD. Both really liked me and wanted to sign up right away. So they signed the contract, policies, forms, etc and gave me the $50 deposit. DCG was supposed to start at 8:30 this morning. Last night at 9:30 PM, DCM calls and leaves a message that she found another daycare that was slightly cheaper and was wondering when she could come by to get her deposit. 
Ok, so I have already bought groceries for the week. This includes milk, fresh produce, etc. I bought a little extra since I would have an additional kid to feed. The little girl is in school (out for summer) so I bought some workbooks, extra craft supplies, etc so we could start the ground running this morning.
In my contract, the deposit is only refundable IF 2 weeks notice is given and all charges, fees, etc are paid BEFORE the last day of care. I do NOT have a clause that says that either party care terminate care during a "trial period".
So my thought is that this lady does NOT get the deposit back and should probably owe me for the 2 weeks for terminating without 2 weeks notice. However, she never started (even though a contract is effective from the moment it is signed - it's signed and dated) so I am wanting to give her a break. But then, she is basically screwing me out of a paycheck that I was counting on. Plus, all the money I spent on additional groceries, paper & ink (for contract, forms, policies, and copies of everything she signed), additional craft supplies, additional workbooks, etc. It seems like she wants ME to pay HER for her breaching the contract.
What do you ladies (and gentlemen) think? Refund the deposit? Charge for the 2 weeks for breaching the termination clause? My hubby says no refund on deposit and charge for the 2 weeks. I am trying really hard to be more business-like and not let people take advantage of me, but it's so hard because I am very soft-hearted. The business owner in me says no refund and charge the 2 weeks. The personal side of me wants to give her some kind of break. UGH!!
Ok, so I have already bought groceries for the week. This includes milk, fresh produce, etc. I bought a little extra since I would have an additional kid to feed. The little girl is in school (out for summer) so I bought some workbooks, extra craft supplies, etc so we could start the ground running this morning.
In my contract, the deposit is only refundable IF 2 weeks notice is given and all charges, fees, etc are paid BEFORE the last day of care. I do NOT have a clause that says that either party care terminate care during a "trial period".
So my thought is that this lady does NOT get the deposit back and should probably owe me for the 2 weeks for terminating without 2 weeks notice. However, she never started (even though a contract is effective from the moment it is signed - it's signed and dated) so I am wanting to give her a break. But then, she is basically screwing me out of a paycheck that I was counting on. Plus, all the money I spent on additional groceries, paper & ink (for contract, forms, policies, and copies of everything she signed), additional craft supplies, additional workbooks, etc. It seems like she wants ME to pay HER for her breaching the contract.
What do you ladies (and gentlemen) think? Refund the deposit? Charge for the 2 weeks for breaching the termination clause? My hubby says no refund on deposit and charge for the 2 weeks. I am trying really hard to be more business-like and not let people take advantage of me, but it's so hard because I am very soft-hearted. The business owner in me says no refund and charge the 2 weeks. The personal side of me wants to give her some kind of break. UGH!!
laundryduchess@yahoo.com 09:38 AM 06-07-2010
I would not refund a deposit used to hold their spot. Thats why you get a deposit, because a parent likes you enough to give you money to hold the spot for them, if they choose to go elsewhere then its forfieted. of course this is laid out in my contract. how does yours read? if it says its refunded , then refund it, if not I would assume its implied that its forfieted. I would just tell mom that her deposit was to hold the spot, and that when she chose to go somewhere else, she lost it.
Greenshadow 09:41 AM 06-07-2010
Thats what the deposit is for...to hold the spot. I would not refund her. No way. Because Im nice, I probably wouldnt hold her to the two-week notice paid (although it sounds like legally you could) but I would NOT give her deposit back.
HeatherB 09:42 AM 06-07-2010
This is why you have a deposit.. her loss. Tell her that they deposit was securing the spot and if it was her choice not to bring the child then it is her loss.
professionalmom 09:52 AM 06-07-2010
Thanks for the replies. I was pretty secure on NOT refunding the deposit. I glad to hear that others agree. I'm still torn on the 2 weeks. Basically, I was expecting payment for this week at drop-off this morning, so I really feel like I got screwed on that. I was thinking about charging for the 2 weeks but apply the deposit toward that so it wouldn't be quite so much. Any thoughts on that?
Greenshadow 09:56 AM 06-07-2010
Have you talked to her about whether she's already signed on with someone else? Sometimes you get what you pay for and maybe in the long run your higher rate is better. Anyway, I probably wouldnt charge her the two weeks only because its probably more of a nightmare trying to get it from her than its worth. I would be worried about word of mouth after something like that. Word gets around fast about providers here. I guess if you want to charge her though, I would say include the deposit in it to make it alittle less.
jen 09:57 AM 06-07-2010
Agh! That sucks! Personally, I think you deserve the 2 weeks and are probably legally entitled to it..but I also think you would probably have to go to court to get it and since there are no guarantees I would probably let it go.
You may want to consider having people pay for their first weeks care when they sign the contract.
You may want to consider having people pay for their first weeks care when they sign the contract.
professionalmom 10:05 AM 06-07-2010
Originally Posted by jen:
Agh! That sucks! Personally, I think you deserve the 2 weeks and are probably legally entitled to it..but I also think you would probably have to go to court to get it and since there are no guarantees I would probably let it go.
You may want to consider having people pay for their first weeks care when they sign the contract.
Here's the weird thing - people in this area do this ALL the time. So I have been quickly building my backbone and getting tougher and tougher on this type of stuff. Now, I have NO problem going to court and getting people to pay up. I am currently waiting on the process server to serve 1 more for me. When he gets that one served, I will have 3 deadbeat in court. I have had my contract in front of a magistrate before and it has held up, so I am not letting anyone slide anymore. The problem with this one is that she didn't start. I have thought, "oh, I don't want anyone to think I'm a B****" But since she obviously is not going to be a client, why should I care what she thinks of me? Agh! That sucks! Personally, I think you deserve the 2 weeks and are probably legally entitled to it..but I also think you would probably have to go to court to get it and since there are no guarantees I would probably let it go.
You may want to consider having people pay for their first weeks care when they sign the contract.
I'd love to charge for the first 2 weeks when they sign, but then I doubt I'd get many clients. I am in MI which is the most poverty stricken state in the country. The parents will just go elsewhere. It was a gamble with the $50 deposit.
But, why would someone sign a contract and pay a deposit if they were still looking? I find that weird.
alyssyn 11:02 AM 06-07-2010
I would not refund her. I would also go after my two weeks. After all, if she signed the contract she knew what she was getting into. Good Luck! 
momofboys 11:22 AM 06-07-2010
Originally Posted by professionalmom:
Here's the weird thing - people in this area do this ALL the time. So I have been quickly building my backbone and getting tougher and tougher on this type of stuff. Now, I have NO problem going to court and getting people to pay up. I am currently waiting on the process server to serve 1 more for me. When he gets that one served, I will have 3 deadbeat in court. I have had my contract in front of a magistrate before and it has held up, so I am not letting anyone slide anymore. The problem with this one is that she didn't start. I have thought, "oh, I don't want anyone to think I'm a B****" But since she obviously is not going to be a client, why should I care what she thinks of me?
I'd love to charge for the first 2 weeks when they sign, but then I doubt I'd get many clients. I am in MI which is the most poverty stricken state in the country. The parents will just go elsewhere. It was a gamble with the $50 deposit.
But, why would someone sign a contract and pay a deposit if they were still looking? I find that weird.
That's what's strange about this. Who would pay a deposit if they were still shopping around? I wouldn't pay a deposit unless I was 110% sure I wanted to use a certain provider.Here's the weird thing - people in this area do this ALL the time. So I have been quickly building my backbone and getting tougher and tougher on this type of stuff. Now, I have NO problem going to court and getting people to pay up. I am currently waiting on the process server to serve 1 more for me. When he gets that one served, I will have 3 deadbeat in court. I have had my contract in front of a magistrate before and it has held up, so I am not letting anyone slide anymore. The problem with this one is that she didn't start. I have thought, "oh, I don't want anyone to think I'm a B****" But since she obviously is not going to be a client, why should I care what she thinks of me?
I'd love to charge for the first 2 weeks when they sign, but then I doubt I'd get many clients. I am in MI which is the most poverty stricken state in the country. The parents will just go elsewhere. It was a gamble with the $50 deposit.
But, why would someone sign a contract and pay a deposit if they were still looking? I find that weird.
safechner 12:21 PM 06-07-2010
I wouldn't refund her. It is her loss! That is why I just added a new policy last week. I have a new family just starting daycare with me today. They are wonderful for first day. I hope it will smooth so far like today...
Here is my new policy:
Deposit Fee
Before your child is admitted into Little Hands Daycare, or to hold a future spot, a security deposit must be paid. This deposit will be credited to your last week’s fee when you decide to depart from Little Hands Daycare. Your deposit amount is outlined in your Financial Agreement.
$_________ Deposit Fee.
*Please note* This fee will not be refunded should you decide not to enroll your child into Little Hands daycare.
Here is my new policy:
Deposit Fee
Before your child is admitted into Little Hands Daycare, or to hold a future spot, a security deposit must be paid. This deposit will be credited to your last week’s fee when you decide to depart from Little Hands Daycare. Your deposit amount is outlined in your Financial Agreement.
$_________ Deposit Fee.
*Please note* This fee will not be refunded should you decide not to enroll your child into Little Hands daycare.
Daycare Mommy 12:44 PM 06-07-2010
No way would I refund the deposit. (If you had to refund it when they change their mind then what's the point of it?) I just can't believe she called to ask for it back! For the 2 weeks I personally would let that part go, but it's your call. GL!
Former Teacher 02:15 PM 06-07-2010
I agree that the deposit should be nonrefundable. I also agree with the posters that said to let the 2 weeks go. Besides you don't want to make a name for yourself. Who knows what this parent might say or do?
On the flip side I can understand your frustration because you bought all the materials. Just save that for the next child. I remember my former director would get upset with me because I would not make a child their cubby until they were enrolled 2 weeks. I would take the time and make these fun and elaborate designs on their name tag. It was great. However I would do it for a child only for them to be gone within a day or so. It was a total waste of time, effort, and money. That's why I waited for at least 2 weeks.
On the flip side I can understand your frustration because you bought all the materials. Just save that for the next child. I remember my former director would get upset with me because I would not make a child their cubby until they were enrolled 2 weeks. I would take the time and make these fun and elaborate designs on their name tag. It was great. However I would do it for a child only for them to be gone within a day or so. It was a total waste of time, effort, and money. That's why I waited for at least 2 weeks.
TGT09 03:24 PM 06-07-2010
Originally Posted by professionalmom:
I have thought, "oh, I don't want anyone to think I'm a B****" But since she obviously is not going to be a client, why should I care what she thinks of me?
This was my EXACT thought.I have thought, "oh, I don't want anyone to think I'm a B****" But since she obviously is not going to be a client, why should I care what she thinks of me?
My contract states that the deposit is not refundable. I would think about re-wording yours if that's not in there.
melissa ann 04:51 PM 06-07-2010
No way refund the deposit. IT's her loss. It's a tough call about the 2 weeks. I agree you should get it, but I would probably let it go.
professionalmom 05:05 PM 06-07-2010
Well, I just got a call from a family with 4 kids who are looking for care. They are coming for the interview on Wed. So maybe things are going to work out better for me. I kinda feel like saying what Judy Trickett says - "Next". So my measly $70 a week for this part-timer turned into over $400 per week (maybe). I think I'm just going to keep the deposit and forget about the 2 weeks. It's not worth the hassle. Thanks everyone for your responses.
Janet 10:28 AM 06-08-2010
Absolutely you should keep the deposit. You weren't given a two week notice, so you aren't obligated to give the deposit back.
momma2girls 01:25 PM 06-08-2010
At the beginning of the yr. I changed my policy in my contract re. deposits. I have in my contract- if you are currently using my daycare- if you would like me to hold a spot, ex. summers off, maternity. I require a 2 week dep. this is nonrefundable, and only used to hold your spot here. If you are not currently using my daycare- the dep. to hold a spot is one week/ per month. I held a dep. for someone pregnant for 10 months, with only 2 week dep. last yr. and I had an opening at that time. I lost so much money, by doing that, I regretted it after I did it!!!!!
MarinaVanessa 05:50 PM 06-08-2010
Originally Posted by professionalmom:
Basically, I was expecting payment for this week at drop-off this morning, so I really feel like I got screwed on that. I was thinking about charging for the 2 weeks but apply the deposit toward that so it wouldn't be quite so much. Any thoughts on that?
Well technically if the deposit was used to hold their spot until they began and ONLY for that reason then you don't have to use the deposit towards their two-weeks notice (assuming you have a two-week notice of termination policy). Getting that money will be hard but you can do as you suggested and try to get the rest of it from them but I doubt they will want to pay. If it were me I would write an e-mail (if you have an e-mail address) so that you can send them a notice and you will have a copy and proof that you sent a written notice. Basically, I was expecting payment for this week at drop-off this morning, so I really feel like I got screwed on that. I was thinking about charging for the 2 weeks but apply the deposit toward that so it wouldn't be quite so much. Any thoughts on that?
If it were me, I would just explain that the deposit was to hold the spot and that it puts you in a bad spot since you have not advertised for the spot because they signed up. I would remind them of the paid two-week's notice of termination that is required that they did not give you and say that I would be willing to keep the deposit and just call it a wash. Make it sound like you are doing them a favor. If they decide to argue about it with I would send another e-mail saying that if they don't like it I will not call it a wash and retract the offer not to try to collect the money for the two-weeks.
Again, technically if you have a policy about a written and paid two week's notice you can keep the deposit and go after the two week's, but getting the money is difficult and may require you to take them to collections or small claims court. Good luck. Let us know what you decide!!
Momma In MT 07:20 PM 06-08-2010
i would not refund the deposit, but don't charge her the 2 weeks. Always be kinder that necessary for everyone is fighting some sort of battle. You never know what is going on in someones life. When in doubt give 'em a break. It could be you in a similar situation some day.
HeatherB 07:26 PM 06-08-2010
Glad you got a call for 4 kiddos... look at the brighter side... the no show client wasnt ment to be! MOVE ON.. KEEP deposit and try to forget about them
professionalmom 07:49 PM 06-08-2010
I haven't heard from this DCM again. I think she got the picture that she lost her deposit. I am definitely over her.
One a great note, I have the interview with the family of four kids tomorrow. I really can't wait to meet them. The 2 youngest are 2 month old twin girls! I'm pregnant with twins and due in Nov. so I am hoping to get some advice from this mom. Even if they don't sign up, maybe I can bond with a fellow mom of twins!
One a great note, I have the interview with the family of four kids tomorrow. I really can't wait to meet them. The 2 youngest are 2 month old twin girls! I'm pregnant with twins and due in Nov. so I am hoping to get some advice from this mom. Even if they don't sign up, maybe I can bond with a fellow mom of twins!