Deposit - What Would You Do?

[Brookenbrandt]

I'm in need of some advice concerning a deposit.

First of all, do you charge a deposit when starting a new dcf?

Some clients of mine recently dropped out of day care without giving the two week notice that's in our contract. They had payed a deposit but since they didn't give notice I wasn't going to pay it back.

But the mother just contacted me and we have agreed to have the children one day a week for now. I will most likely be replacing the now part time kids with two full timers.

I guess my question is, now that they are back for the one day are they entitled to the full deposit refund? I feel like they have really put me in a bad financial situation because they dropped out of full time care without notice and honestly I can't afford to pay back the full deposit.

[butterfly]

I'm in need of some advice concerning a deposit.

First of all, do you charge a deposit when starting a new dcf?

Some clients of mine recently dropped out of day care without giving the two week notice that's in our contract. They had payed a deposit but since they didn't give notice I wasn't going to pay it back.

But the mother just contacted me and we have agreed to have the children one day a week for now. I will most likely be replacing the now part time kids with two full timers.

I guess my question is, now that they are back for the one day are they entitled to the full deposit refund? I feel like they have really put me in a bad financial situation because they dropped out of full time care without notice and honestly I can't afford to pay back the full deposit.

What was the deposit for? Usually it covers their last 2 weeks, so if they fail to give notice the deposit ensures you get paid. I don't see that they are due a refund. What does your contract say?

[TheGoodLife]

I would not refund a deposit, especially if they didn't give contracted notice. I wouldn't even think of letting them return- they obviously don't respect you and may very well do so again. Did they bring up the deposit? I'd think they are "returning" just to get the deposit back and then leave again.

Did they owe more than the deposit when they left? My deposit is two weeks' tuition and is applied to the last two weeks of care, after notice is given. If someone were to leave w/o notice, I would not be out financially.

[Brookenbrandt]

My contract says that a two week written notice prior to termination of contract is required in order to receive a full deposit refund. I do not apply the deposit to the final two weeks' pay. I think that in the future I am not going to even have a deposit.

The mother told me that she was suddenly and unexpectedly fired from her job and so that's why they immediately stopped bringing the kids. The way I see it is that I am obviously in need of money so why not take them for a day a week. But I did tell her that a new full time kid takes precedence.

[TheGoodLife]

Your deposit should cover their 2 weeks' notice. Then there's no worry to refund anything- it is applied to their last two weeks whether they are in attendance or not:

"Deposit is two weeks' tuition. This is non-refundable and will be applied to the last two weeks of care, provided there are no outstanding fees." Something like that. That's the purpose of a contract- it's too bad if she was out of a job but that should not affect you or your contract.

[daycare]

I require parents to submit a notice of intent to change schedule form in writing 30 days in advance if they are decreasing their schedule and 2 weeks in advance if they are increasing their schedule.

I also inform them right away that all FT families hav priority over PT families. Should their spot be needed to fulfill a FT spot, they will be given priority to turn down the FT spot and will surrender their spot. All services will be terminated from that point forward. They will be notified two weeks in advance.

[NoMoreJuice!]

I would treat this situation as if she had broken the original contract, and now wishes to create a new contract with you. For the original contract, you are due the two weeks notice, and therefore deposit.