Refund Deposit?

Hi - I woke up to an email that is cancelling enrolment for a child that signed up almost a month ago unfortunately. Great family/kid, so i'm down. They said that their circumstances have changed due to an ill relative and therefore their child needs extended care in daycare so they can tend to the ill relative in addition to their work schedules.
They have asked if i can consider their situation and refund their 2 weeks deposit? I have in my contract signed by them, that it is unrefundable.

Although i do feel bad for them, I also now have to start advertising and interviewing again because i turned away a few families due to them taking my last spot. I am contacting the families i turned away, but they probably already found care for September.

Have you ever in any circumstance refunded deposit which held the spot?

Do i send them a tax receipt with childcare amount?

I noticed that i inadvertently charged them for Labour Day Sept 4 and child officially was to start Sept 5th...so i do owe a day's rate back to them... should i send them cash along with receipt.

Thanks so much

I have it too, in my contract, that the deposit is not refundable. As sad as their circumstances are, how do they know what yours are? You could be having hard times as well, how do they know?
I stick to the contract no matter what. If I don't, I end up having people take advantage and think I'm not serious about my rules.

As for the day's rate that you owe them, I would do electronic transfer so I have a record of them accepting it and no one can come back and say it's still owing.

It amazing how often a request for refund is accompanied by tale of sorrow. While it might well be true, it's irrelevant. Effectively what they asking is that after holding space for whole month, you financially absorb the cost of their change in circumstance. Doing so would be admirable and for most, only something someone wealthier than me able to do. I sorry, but I not able absorb two weeks fees for sake of what essentially is a stranger. And why should I?

The reasons for cancelling their contract are irrelevant. They have a means to cancel their decision and get out of their contract and while it might not be any fault of their own, there is a cost to that and it's losing their non-refundable deposit. It not your fault for sure, so why would you take the loss?

"Dear Potential Client,
I am sorry to hear of your unfortunate turn of events. However, having held the space for you for a month, I am unable to amend my policy that deposits are non-refundable. I wish you and your family the best for what I can see will be a challenging time.
Kindest regards,
You name"

Yes, if you didn't issue a receipt when you got that deposit, you must do so.

I would use Suzies wording. But if it makes you feel better you can let them know that IF you fill the space prior to their intended start date, therefore resuming pay for that date with another family you can consider returning their refund. I would only do this IF you have a new family secured so you are not out any income.

But, you by no means have to, they signed, acknowledged and agreed to the non-refundable deposit.

Thanks guys. Will use your letter Suzie. I'm feeling better now.

Quote:

---

Originally Posted by ebhappydc

Thanks guys. Will use your letter Suzie. I'm feeling better now.

---

Glad you are feeling better as there is nothing worst than having someone cancel. Suzie's letter sounds perfect ........now GOOD LUCK IN FINDING A NEW COMMITTED CLIENT:)

No refund if your contract states that. Just refund the 1 day you overcharged her for.

Quote:

---

Originally Posted by ebhappydc

Although i do feel bad for them, I also now have to start advertising and interviewing again because i turned away a few families due to them taking my last spot. I am contacting the families i turned away, but they probably already found care for September.

Do i send them a tax receipt with childcare amount?

I noticed that i inadvertently charged them for Labour Day Sept 4 and child officially was to start Sept 5th...so i do owe a day's rate back to them... should i send them cash along with receipt.

Thanks so much

---

Hi. I'm sorry for this happening to you. No one better than us know how hard is to loose a client that signed and backs off. But, also I have noticed some people fails to think or view things from our side because they aren't aware of how this business work. If you have opportunity explain to them on how detrimental is their cancellation to you, explain how much work it takes to interview families and find the right fit and then to contact others to tell them to move on because you're full.

Explain to them that at the end their two weeks notice might not even cover all the finantial loss of one empty spot; it might take you more time to fill that spot and sometimes months, which a two weeks deposit doesn't justify.

You can give their receipt but not the extra.day payed, two weeks is ten payable days to us. Even if they're starting a day after a holiday, I would personally count as ten days deposit. That is covered in your contract. If a child starts let's say in the middle of a week I just ask to them an extra check for the days that he was is care and I charge the two weeks later on.

So review your contract. When we say two weeks holding deposit it is 10 days in my view.

Good luck, hopefully someone fills your spot in no time. And even if you do and if they notice two weeks of pay for the inconvenience sounds fair.

Quote:

---

Originally Posted by Peacefulbird

Hi. I'm sorry for this happening to you. No one better than us know how hard is to loose a client that signed and backs off. But, also I have noticed some people fails to think or view things from our side because they aren't aware of how this business work. If you have opportunity explain to them on how detrimental is their cancellation to you, explain how much work it takes to interview families and find the right fit and then to contact others to tell them to move on because you're full.

Explain to them that at the end their two weeks notice might not even cover all the finantial loss of one empty spot; it might take you more time to fill that spot and sometimes months, which a two weeks deposit doesn't justify.

You can give their receipt but not the extra.day payed, two weeks is ten payable days to us. Even if they're starting a day after a holiday, I would personally count as ten days deposit. That is covered in your contract. If a child starts let's say in the middle of a week I just ask to them an extra check for the days that he was is care and I charge the two weeks later on.

So review your contract. When we say two weeks holding deposit it is 10 days in my view.

Good luck, hopefully someone fills your spot in no time. And even if you do and if they notice two weeks of pay for the inconvenience sounds fair.

---

TX - I'll remember the 10 days deposit instead of 2;weeks if this ever happens again. For now I kept email back to client short and to the point. I did give back one day fee but I do see the point of why not. Especially if they were to start transitioning in the days prior to the stat holiday. Live and learn!