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Old 11-14-2013, 07:52 AM
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Default Collections + Late Fees?

I have a past dcp who upon leaving because state didnt pay for a month of daycare and she couldn't afford so we set up a payment plan. In the plan I outlined if a payment was not paid via the agreed apon date the late fees would date make to the time the original payment was due. Well the payment was due 5 days ago and parnt isnt responding anymore. I am turning her into collections but is it excesses to do late fees to. In this case she owes a little over 100 but late fees would total over 4000. Wwyd?
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Old 11-14-2013, 08:03 AM
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I'd turn the total amount over and let the collection agency deal with it.
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Old 11-14-2013, 08:06 AM
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Originally Posted by kelsey's kids View Post
I have a past dcp who upon leaving because state didnt pay for a month of daycare and she couldn't afford so we set up a payment plan. In the plan I outlined if a payment was not paid via the agreed apon date the late fees would date make to the time the original payment was due. Well the payment was due 5 days ago and parnt isnt responding anymore. I am turning her into collections but is it excesses to do late fees to. In this case she owes a little over 100 but late fees would total over 4000. Wwyd?
I'm a softy! I might do some late fees like starting after she stopped responding but not charging late fees during the time she was working with you.
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Old 11-14-2013, 09:35 AM
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The late fee's seem really excessive. A late payment fee of like $5 a day or $10 per day would seem fine but creating a $100 balance and turning it into $4000 doesn't seem right. If I were in this position I would write one last letter and send it certified.

Dear Mary Moocher,

This is my last direct attempt to collect your debt. On [Date] you agreed to pay the amount of [$$] due to the fact that [subsidy] did not cover the payment of [date] through [date]. You agreed to make payments on balance in the amount of $$ a [week/month]. As a part of our agreement you agreed to make all payments on time and if a payment was missed or late that a late penalty fee would be added in the amount of $$.

Your last payment of $$ was due on [date] and not yet been received. After multiple failed attempts to contact you I am giving you one last opportunity to make your account current. Make a payment of $$ no later than [time] on [Date] and as a courtesy I will waive any late penalties. If no response or payment is received by the date stated above your account will be send to collections and/or a case will be filed against you in small claims and you will be reported to ProviderWatch, a reporting and credit checking agency for child care providers. http://www.providerwatch.com/v2/

As a reminder, your next payment is due on [Date] and must also be paid when due as well as any other consequent payments. If further payments are missed your account will immediately be sent to collections and/or a case will be filed against you in small claims.

All further communication from this point is required in writing either by certified US postal mail or through e-mail. Telephone calls and verbal communication will not be accepted. Do not attempt to come to my home.

Signed
Annoyed Amy

1234 Story of My Life Street
Grow, Up 12345

Annoyed.Amy@PayMe.com


I'd give her one week to pay or to contact you. If she contacts you to pay and she gives you a check I would let her know that you will be cashing it immediately and DO IT!! Go to her bank and cash it, don't deposit it just in case she tries to put a stop payment on it. If she gives you a check and it bounces contact your DA, they might take it as fraud and you won't pay a penny and you can still take her to small claims/send her to collections.

Keep a copy of the letter for yourself. Don't answer her calls. Send her to voice mail and if she tries to come to your house ignore her. If she is insistent call the police and show them the letter to show them you told her not to come to your house. I know it sounds drastic but this will help you create a paper trail. Nasty voice mails will only make your case better and any messages she leaves you may be helpful when collecting your money. So will emails, letters and texts. You want to get everything in writing.

If she doesn't contact you or doesn't pay you immediately file a case in small claims or send her to collections. Collection agencies work differently from agency to agency so just make sure you know how yours works. Some will take a % of the money they collect, some will send you payments as they receive payments from DCM, some won't pay you until they collect the money in full, some will outright buy the account from you and either offer you a lesser amount than she owes or will give you the amount in full and go after DCM for that amount plus their costs, some even prevent you from being able to file a small case later if they are unable to collect from her. As long as you do your homework you can choose an agency that is better for you.
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Old 11-14-2013, 11:26 AM
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Signed
Annoyed Amy

1234 Story of My Life Street
Grow, Up 12345

Now that's just funny......
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