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Daycare Center and Family Home Forum>How Long Can I Wait Before Refunding Money To A Family?
Unregistered 02:00 PM 12-15-2012
I am just getting my in home daycare going and have had an unfortunate issue come up and I'm not sure on my rights. Basically I interviewed a family with 2 children that wanted care starting at the beginning of the year. I told them I would hold the spots, only if they paid me for 1/2 of January up front. Well the dad came over this week, paid me and give me all the enrollment paperwork. I then received an e-mail from him the next day stating that him and his wife might not need care as they were trying to adjust their work schedules accordingly. He wanted to know if they could get their money back if this was the case. I told him that yes my policy was that care can be terminated by either party within the first 2 weeks and that money for any services not provided would be refunded. The next day I get an e-mail saying that they realized they can't afford childcare and will not need my services.
I don't have a waiting period about refunds in my policy currently (I'll be adding one asap) but what are my rights here? Can I make them wait up to 30 days? This put me in a very bad situation financially since my family and I were counting on this money. I all ready used some of it to pay bills we had due so at this point I don't even have all their money to give back to them. I knew getting my business up and going would be tough, but I never expected this to happen. Any advice would be wonderful. Thanks!
I don't have a waiting period about refunds in my policy currently (I'll be adding one asap) but what are my rights here? Can I make them wait up to 30 days? This put me in a very bad situation financially since my family and I were counting on this money. I all ready used some of it to pay bills we had due so at this point I don't even have all their money to give back to them. I knew getting my business up and going would be tough, but I never expected this to happen. Any advice would be wonderful. Thanks!
Mom&Provider 02:30 PM 12-16-2012
You 100% have to put something in your contract about deposits! Any family agreeing to sign with me leaves a deposit and regardless of when they cancel, 1 day, hours or a week later it's mine -care or no care provided! My contract also states that the deposit they leave, generally 1 week (more if holding the spot for a long period of time), is put towards their 1st week of care once they attend, BUT if they back out, it's gone. I have read on here that many collect a deposit and use it towards the last week of care, which I like much better and must change mine before taking on new clients! 
It sounds like you have nothing in writing that says it's yours to keep, or that you won't refund it, sooo....unfortunately I think in this case it has to go back and right away - especially considering they cancelled just 24 hrs later. I understand you've spent a portion of it, but without a clause in your contract to say it's yours if they back out...it's really not yours to keep. Without anything in your contract you have no rights, they've asked for it back and nothing in your contract says they can't have it. You've also indicated that they can have it back, so there really is no choice.
Take this a your first lesson in this business and move on.
It sounds like you have nothing in writing that says it's yours to keep, or that you won't refund it, sooo....unfortunately I think in this case it has to go back and right away - especially considering they cancelled just 24 hrs later. I understand you've spent a portion of it, but without a clause in your contract to say it's yours if they back out...it's really not yours to keep. Without anything in your contract you have no rights, they've asked for it back and nothing in your contract says they can't have it. You've also indicated that they can have it back, so there really is no choice.
Take this a your first lesson in this business and move on.
Blackcat31 04:32 PM 12-16-2012
I would retrun the money as soon as you are able to. Making them wait because you used it to pay bills is not at all professional or okay in my opinion.
If you are going to charge a deposit and not specify that it is non-refundable, you should always hold the deposit without spending a dime until actual services are provided.
Otherwise, you will be stuck in a bad situation owing someone money when you can't afford it like you are now.
I highly doubt you can make them wait for any specfic amount of time, I would try to get the money as soon as possible and return it to them immediately.
I am sorry you are in this situation and I hope you are able to resolve it soon. We definitely learn what to write in our policies due to experiences.
If you are going to charge a deposit and not specify that it is non-refundable, you should always hold the deposit without spending a dime until actual services are provided.
Otherwise, you will be stuck in a bad situation owing someone money when you can't afford it like you are now.
I highly doubt you can make them wait for any specfic amount of time, I would try to get the money as soon as possible and return it to them immediately.
I am sorry you are in this situation and I hope you are able to resolve it soon. We definitely learn what to write in our policies due to experiences.
MamaG 04:40 PM 12-16-2012
Originally Posted by Blackcat31:
I would retrun the money as soon as you are able to. Making them wait because you used it to pay bills is not at all professional or okay in my opinion.
If you are going to charge a deposit and not specify that it is non-refundable, you should always hold the deposit without spending a dime until actual services are provided.
Otherwise, you will be stuck in a bad situation owing someone money when you can't afford it like you are now.
I highly doubt you can make them wait for any specfic amount of time, I would try to get the money as soon as possible and return it to them immediately.
I am sorry you are in this situation and I hope you are able to resolve it soon. We definitely learn what to write in our policies due to experiences.
Sadly this is about right. Without clearly stating no refunds on deposites. That means you spent money that wasn't yet yours. If you don't want them bad mouthing you to everyone you're best bet is to pay it back in full promptly. Read thru this forum, ask questions on all policies others have and why. You'll find yourself in a lot of pickles if you don't do your research!I would retrun the money as soon as you are able to. Making them wait because you used it to pay bills is not at all professional or okay in my opinion.
If you are going to charge a deposit and not specify that it is non-refundable, you should always hold the deposit without spending a dime until actual services are provided.
Otherwise, you will be stuck in a bad situation owing someone money when you can't afford it like you are now.
I highly doubt you can make them wait for any specfic amount of time, I would try to get the money as soon as possible and return it to them immediately.
I am sorry you are in this situation and I hope you are able to resolve it soon. We definitely learn what to write in our policies due to experiences.
DaisyMamma 07:10 AM 12-17-2012
Originally Posted by Blackcat31:
I would retrun the money as soon as you are able to. Making them wait because you used it to pay bills is not at all professional or okay in my opinion.
If you are going to charge a deposit and not specify that it is non-refundable, you should always hold the deposit without spending a dime until actual services are provided.
Otherwise, you will be stuck in a bad situation owing someone money when you can't afford it like you are now.
I highly doubt you can make them wait for any specfic amount of time, I would try to get the money as soon as possible and return it to them immediately.
I am sorry you are in this situation and I hope you are able to resolve it soon. We definitely learn what to write in our policies due to experiences.
It really sucks but this is true.I would retrun the money as soon as you are able to. Making them wait because you used it to pay bills is not at all professional or okay in my opinion.
If you are going to charge a deposit and not specify that it is non-refundable, you should always hold the deposit without spending a dime until actual services are provided.
Otherwise, you will be stuck in a bad situation owing someone money when you can't afford it like you are now.
I highly doubt you can make them wait for any specfic amount of time, I would try to get the money as soon as possible and return it to them immediately.
I am sorry you are in this situation and I hope you are able to resolve it soon. We definitely learn what to write in our policies due to experiences.
I don't refund deposits. I require two weeks upfront and it goes towards the last two weeks of care. Once they leave the $ its mine. It doesn't matter if they cancel or fail to give 2 weeks notice.
MamaG 10:40 AM 12-17-2012
Originally Posted by DaisyMamma:
It really sucks but this is true.
I don't refund deposits. I require two weeks upfront and it goes towards the last two weeks of care. Once they leave the $ its mine. It doesn't matter if they cancel or fail to give 2 weeks notice.
I do the exact same thing. To many families leave without notice or just a few days notice. Once gone they aren't going to pay you for the two week notice they should have given you. Makes it hard to have a budget if your income is super unpredictable. Now you know and now you need to change your policy.It really sucks but this is true.
I don't refund deposits. I require two weeks upfront and it goes towards the last two weeks of care. Once they leave the $ its mine. It doesn't matter if they cancel or fail to give 2 weeks notice.