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Daycare Center and Family Home Forum>Late Payment Policy
AfterSchoolMom 01:44 PM 01-13-2011
I have a huge problem with parents paying late and flat refusing to pay late fees, so I am going to change my payment policy. I'm going to get rid of the late fees, but will be more strict. What does everyone think of this?

"After two calendar days, your child will not be allowed to return to care until payment is made in full (you will be required to pay for these days as well). More than two late payments will result in the loss of your child’s place in my home with no refunds given."
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lvt77 01:57 PM 01-13-2011
I say if your firm enough to do that then do it... I have no back bone...lol
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AfterSchoolMom 01:58 PM 01-13-2011
At this point, I feel like I've got nothing to lose anyway.... so I think it'll be easier to stick to this than it has been to try and get them to pay late fees.
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Blackcat31 01:59 PM 01-13-2011
Seriously? What do you mean they flat out refuse to pay late fees? Like they keep paying the bill but will seriously leave their children with you and not pay the late fee part of the bill? I am honestly floored at the disrespect. I would change my policy to no care until bill is paid in full INCLUDING LATE FEES. Wow, I can't believe how disrespecful people can be and I don't mean just parents...just that I am assumming late fees were outlined into your conract and they agreed so what is the problem now that you are enforcing the contract?
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dEHmom 02:01 PM 01-13-2011
Maybe I'm not catching something here, but......

If they are late on their payment, you allow them to go 2 additional days with care, and then if they still don't pay, you won't give them a refund? If they are behind on payments, where would a refund even come into the picture?

Personally no pay no stay. If you don't pay me on friday or monday morning for mondays care at the very least, don't bother taking your kids shoes off. If you show up on tuesday morning and you don't have payment I don't even open my door. SORRY! if you arrange with me at least a few days in advance and I AGREE to it, then maybe there is an exception.
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AfterSchoolMom 02:06 PM 01-13-2011
Blackcat, yes, you've got it right. They just ignore the late fees and pretty much pay whenever they want. I've tried to enforce fees and I've tried sending out reminders when fees are due...and they just ignore me. I've changed the payment day and have started to accept checks for the first time ever to help them to remember to pay on time, and still timely payments are an exception rather than the rule.
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missnikki 02:06 PM 01-13-2011
Originally Posted by Baybee0585:
If you don't pay me on friday or monday morning for mondays care at the very least, don't bother taking your kids shoes off... if you arrange with me at least a few days in advance and I AGREE to it, then maybe there is an exception.
Yup.

If you tell me you have a problem before it's a problem, then no problem. If you avoid me and sob story me while I am supposed to watch your child for free, go kick rocks!
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AfterSchoolMom 02:09 PM 01-13-2011
Originally Posted by Baybee0585:
Maybe I'm not catching something here, but......

If they are late on their payment, you allow them to go 2 additional days with care, and then if they still don't pay, you won't give them a refund? If they are behind on payments, where would a refund even come into the picture?

Personally no pay no stay. If you don't pay me on friday or monday morning for mondays care at the very least, don't bother taking your kids shoes off. If you show up on tuesday morning and you don't have payment I don't even open my door. SORRY! if you arrange with me at least a few days in advance and I AGREE to it, then maybe there is an exception.
Right now my payment day is Thursday for the following week. Are you saying that if they don't pay Thursday, I shouldn't let them in on Friday w/o money? I know that a good portion of people here do that.

I included the part about the refund because I anticipate someone getting angry and pulling their child and then trying to get money back from me because of it. Just trying to cover my rear end.
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dEHmom 02:12 PM 01-13-2011
I am simply just implying that all my care is prepaid unless you've discussed alternate arrangements and I've agreed example, you know you next paycheque is smaller because..........and you'll catch up or whatever.
If I agree then fine, but if you don't discuss this ahead of time, too bad. If you don't prepay you don't bring your child until you do.

So if they are paid up until a thursday, and don't pay you thursday night, or friday morning, then say sorry, and close the door.
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Blackcat31 02:19 PM 01-13-2011
Again..wow! I so feel for you because it is so hard when people just disregard what you say. It is easy to say yes, you should lock the door and not let them in if they don't pay in full but no matter how tough we all say we are on here there is still a human element involved in the business. Most of us do this because we love kids not because we are business tycoons with hearts made of titanium...most of us have hearts of gold and unfortunately that is our downfall as well. I would however, maybe try to talk with the parents and say, "why do you feel you can just ignore the late fees?" Maybe if you put them on the spot and ask them, maybe they will explain their actions....maybe they don't feel late fees really matter because you aren't enforcing them. Can you afford to lose some people if you get tough? If not that will definately change how you handle this situation.....
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dEHmom 02:25 PM 01-13-2011
Originally Posted by Blackcat31:
Again..wow! I so feel for you because it is so hard when people just disregard what you say. It is easy to say yes, you should lock the door and not let them in if they don't pay in full but no matter how tough we all say we are on here there is still a human element involved in the business. Most of us do this because we love kids not because we are business tycoons with hearts made of titanium...most of us have hearts of gold and unfortunately that is our downfall as well. I would however, maybe try to talk with the parents and say, "why do you feel you can just ignore the late fees?" Maybe if you put them on the spot and ask them, maybe they will explain their actions....maybe they don't feel late fees really matter because you aren't enforcing them. Can you afford to lose some people if you get tough? If not that will definately change how you handle this situation.....
Exactly, I am a lot of talk!
Point is show some respect and let me know ahead of time that you're going to make a late payment. Or phone me when you get home and admit that you forgot to take it out of your wallet! But please don't just assume that it's ok to not pay me for a week becasue you're short. That then makes me short, and makes my payments late.
It's all a matter of respecting one another and if you can't respect me by paying me on time, or at least discussing with me, then I won't care for your child anymore, and you won't be paying bills on time either because you'll be sitting at home with your kid.
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e.j. 02:29 PM 01-13-2011
Originally Posted by AfterSchoolMom:
"After two calendar days, your child will not be allowed to return to care until payment is made in full (you will be required to pay for these days as well). More than two late payments will result in the loss of your child’s place in my home with no refunds given."


If they're supposed to pay on Thursday for the following week, I can understand why you might give them the 2 days. I'd even give them til Monday morning at drop off. I would keep the late fees, though. If at drop off on Monday, they still haven't paid you (all late fees included) I'd go into "No Pay/No Stay" mode.
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legomom922 04:28 PM 01-13-2011
Originally Posted by e.j.:
If they're supposed to pay on Thursday for the following week, I can understand why you might give them the 2 days. I'd even give them til Monday morning at drop off. I would keep the late fees, though. If at drop off on Monday, they still haven't paid you (all late fees included) I'd go into "No Pay/No Stay" mode.
I agree with this except for giving them until monday am. I would give them until Fri drop off, BUT if they do not pay at drop off, you dont watch the child, and I would charge the late fee for anytime after your closing time on Thurs!

You have to stop letting these parents dictate the rules here. Put your foot down. I would a notice in their backpack, that says you now enforcing your policies as of such & such date, & that the late fees will apply and no pay no stay rule will apply to anyone who does not pay by fri drop off. Period.
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AfterSchoolMom 05:05 PM 01-13-2011
Yeah, I tried that, and that was the day that I found out they were looking for another provider.

It is SUPER hard to get new families, so I'm between a rock and a hard place.
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SandeeAR 05:12 PM 01-13-2011
If you switched to prepay, it would do away with that problem altogether.


Sorry, none of the answers showed up until after I posted. (I had been away from the computer with this thread open) I see you are already prepay. And yes, if they don't pay by drop off Friday morning, don't keep the kids. They are taking advantage of you, b/c you let them and they know they can get away with it.

You have to remember, this is BUSINESS first. Do you think your mortgage company or landlord would let you stay in your house, if you were always late?
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dEHmom 05:15 PM 01-13-2011
Originally Posted by AfterSchoolMom:
Yeah, I tried that, and that was the day that I found out they were looking for another provider.

It is SUPER hard to get new families, so I'm between a rock and a hard place.
sorry you did what? Tell them to prepay?

Once again, oh well! If they are habitual late payers, they will eventually become no payers, and well, do you want to work for free? or would you rather try find alternate family?
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Preschool/daycare teacher 06:47 PM 01-13-2011
Originally Posted by AfterSchoolMom:
Yeah, I tried that, and that was the day that I found out they were looking for another provider.

It is SUPER hard to get new families, so I'm between a rock and a hard place.
I feel for you. When there's other daycares anywhere even half way close to your own, providers can't enforce their policy's without a parent getting mad and finding another place. When you're hurting for children anyway, and might as well close your business if even one more leaves, providers just pretty much have to let parents do what they want, or else look for another line of work. This happened to us lately. Mom owed for a day her son didn't come, and she asked for the upteenth time if she still owed since dcb wasn't there. She's always trying to get by with that. Owner told her yes, so dcm told her she was pulling him out as soon as she found another place. It'd be nice if all the providers in every town or city had the same policies, and everyone enforced them just as strictly as the next one, so parents would know it wouldn't do them any good to threaten pulling their child out just because you enforced your policy because It'd be the exact same way at the next place... but then, i guess it's nice to be able to do what works best for you and your family when you can make up your own individual policies.
Good luck with this one! Sounds like the parents know they have you between a rock and a hard place
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dEHmom 08:30 PM 01-13-2011
Here's where I get confused....

IF you are renting a house or apartment, you often have a credit check or have references to prove you have a good history of making payments....

IF you buy or lease a car, you have a credit check to make sure you have a good history of making payments

IF you take out a loan at a bank, you get my drift!

Basically, whenever you are going to be responsible for making regular payments for services or something of the sort, you get references. WE as Daycare providers have references because parents want to check out the person that will be caring for their child. Why is it then not required that to place your child in any service, they are required to have references of some sort? Why can't we call their last daycare and check on them. I understand most would lie and say they've never done it before etc.

Seems dumb to me. We should all be able to phone each other and say watch out for that one! ooooh I like that idea. There should be 1 website in the whole world, where every daycare provider has to go to list their service for their area, and then, should a client be a bad one, their name goes on the black list.
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Abigail 08:50 PM 01-13-2011
Originally Posted by AfterSchoolMom:
I have a huge problem with parents paying late and flat refusing to pay late fees, so I am going to change my payment policy. I'm going to get rid of the late fees, but will be more strict. What does everyone think of this?

"After two calendar days, your child will not be allowed to return to care until payment is made in full (you will be required to pay for these days as well). More than two late payments will result in the loss of your child’s place in my home with no refunds given."
What are parents not paying......the next week of care in advance on time or picking up late and not paying your late fee? What does your late fee state? I guess I still don't like how you are wording things....I'd like to see what your current late fees are. I would enforce a no-pay, no stay policy and not provide care even one day without pay. If they show up at your door without pay, don't let their child come in. Sure the parent and possibly the child may become upset or yell at you, but they'll learn the first time you're serious that they're not paid. Tell them to go home to get the checkbook or go to the bank, then return with their child. LOL.
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AfterSchoolMom 12:09 PM 01-14-2011
I don't have a problem with late pickups very often. My issue is that my payment day is Thursday, and just about every single week, I'm not getting paid until Monday afternoon. One family didn't pay me until the following Wednesday (this week).

My current contract states that there's a $10 late fee for every calendar day after their scheduled payment day. So, the Wednesday parent should have owed me an extra $60. The check didn't include it. I ask about the late fee THAT THEY AGREED TO, and they give me a ton of attitude and tell me that they don't think it's "fair" and they act all insulted and leave in a huff.

Normally, I'd terminate in a hot second, but I flat out can NOT afford to lose anyone right now. It's put up with it or don't eat or feed my children.

The reason that I brought this up is that I'm interviewing a new family today (my first daytime, non SA family in a long time) and I don't want to fall into the same pattern with them.
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dEHmom 12:14 PM 01-14-2011
Originally Posted by AfterSchoolMom:
I don't have a problem with late pickups very often. My issue is that my payment day is Thursday, and just about every single week, I'm not getting paid until Monday afternoon. One family didn't pay me until the following Wednesday (this week).

My current contract states that there's a $10 late fee for every calendar day after their scheduled payment day. So, the Wednesday parent should have owed me an extra $60. The check didn't include it. I ask about the late fee THAT THEY AGREED TO, and they give me a ton of attitude and tell me that they don't think it's "fair" and they act all insulted and leave in a huff.

Normally, I'd terminate in a hot second, but I flat out can NOT afford to lose anyone right now. It's put up with it or don't eat or feed my children.

The reason that I brought this up is that I'm interviewing a new family today (my first daytime, non SA family in a long time) and I don't want to fall into the same pattern with them.


Understand.

I understand you like to have a particular payday, but is it maybe that the parents get paid on a different week? And that's why they are always late?
What about asking each parent what are their paydates, and setting it up so that that is their payday to you as well? That may help, and you'll be getting paydays at different times, so it's like everyday is payday (or every other day)
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AfterSchoolMom 12:19 PM 01-14-2011
I've actually asked them that. At one point I talked to both of my families and said "tell me what day is best for YOU". One said "The way it is is fine" and one said "We'll go home and talk about it and let you know", and never told me anything after two weeks of me asking.

Sorry, I wish I could say "yay, that's it!" and go with these suggestions.
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dEHmom 12:22 PM 01-14-2011
I would tell them on pickup today or next week, They pick the payday that works with their payday, then that will be the day for making their payment, no excuses. Whatever day they pick make them sign a form changing the payday to that date. Should they be more than 1 day late after that day, your late charges will be in effect and everyday that it is late, it doubles so first day charge 5 dollars 2nd day 10 so that's 15 for 2 days late, then 3rd day charge 20 so that's now 35.
Or if you want to avoid discussing it, hand them a form, tell them you expect it back at drop off, with it signed and completed.
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