apick 02:26 PM 12-15-2012
So I am a newbie just getting my daycare up and running and had finally gotten my first family enrolled. They didn't need care until January so I was holding 2 spots for them for almost a month. To do this I told them they must pay me for the first 1/2 of January up front. Well right after they paid me and gave me all the paperwork I got an e-mail saying they realized they can't afford childcare and want their money back ASAP.
The bad thing is my husband and I have been struggling financially and desperately needed that money to pay our bills so I don't have all of it to give back to them currently. Can I tell them they have to wait 30 days to get a refund? I will be adding this to my handbook asap but don't currently have a policy regarding refunds, just that they will get their money back, so I wasn't sure how to handle this.
MamaG 05:14 PM 12-15-2012
I don't hold spots for free. They'd have had to pay in advance at half the regular rate. Plus I don't give refunds! Each parent pays in advance for the next week of care. If I close for any reason I deduct the days fee from the next weeks tuition. You are in a pickle. Good luck. If your hand book isn't specific about how they get the refund or when I would tell her whatever you want. I also charge an enrollment fee, non refundable, just to get the paperwork and my handbook. I don't give away my time or my paper and ink. Keep us posted on how this works out.
LaLa1923 05:47 PM 12-15-2012
No refunds........Sorry, but this is the reason you take a deposit. So when they decide not to come you were compensated at least some..
itlw8 06:08 PM 12-15-2012
a deposit hold the spot and is non refundable if they could get it back why take a deposit they are welcome to attend those 2 weeks
cheerfuldom 06:27 PM 12-15-2012
If your contract says the deposit is refundable if they change their mind, why even collect a deposit?
Anyway, revamp your contract in the future and figure out a way to get this money back to them asap before they get ugly about the whole issue.
wdmmom 08:53 PM 12-15-2012
They've paid for 2 weeks of daycare. Tell them that they can utilize the service but there are no refunds. That's the purpose of a security deposit.
If they are not satisfied with that, I'd offer half the deposit back. The other half penalty for breaching the contract.
Mom&Provider 06:20 AM 12-17-2012
This the same post as found here w/a few additional facts:
https://www.daycare.com/forum/showthread.php?t=56841
There is nothing in her contract to say deposits are non-refundable and she has already told them they can have the money back, she is on the line to pay it back IMO.
It's unfortnate, but with nothing in writing she must pay it back, period. Considering they had given her the funds 24 hrs prior to her spending some of it, it seems unreasonable that she ask for 30 days or any time really to pay it back. I agree this family obviously should have thought this through before they agreed to someone providing care for their children, they didn't and that sucks.
I'd imagine if this went into a court she'd be told to pay it back. No services have been provided, nothing mentions deposits in her contract and she has verbally agreed to pay it back.
Sorry it sucks, but lessons are sometimes learned through our mistakes...