Refunding a deposit

A family enrolled with me back in November. They emailed their contract, forms and a one week deposit, that I use as their last payment when two weeks is given to terminate care. Their son was to start care next week Monday. I just got an email saying that they changed their mind and would not enroll with me because her husband lost his job in December. He just got a job, but due to distance they decided to stay at their present daycare. I am confused as what to do with the deposit. Do I have to refund it? Please help :(

What does your contract say???? Mine says....

A deposit of the last 2 weeks of pay will be required upon signing of this contract to hold the child’s spot in daycare. If the parents wish not to follow through on the spot, the deposit is non-refundable. If the caregiver wishes to no longer hold the spot, the deposit will be returned in full to the parents.

So if I was in your case their deposit would not be returned as they no longer wished to use the spot.

But it all comes down to what ur contract says!

My contract says this ....

A deposit of one week is required to put this contract into effect. It will be applied to the last weeks payment, upon termination of this contract. I also agree to give a minimum of two weeks written notice, if I intend to withdraw my child from the childcare. if two weeks notice is given, I agree to make payments up until the last day of attendance and the deposit will not be refunded.

I think I am at a loss, I do not mention anything about holding a spot !

They didn't give you two weeks notice, I think you get to keep it.

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Originally Posted by suzydominguez

A family enrolled with me back in November. They emailed their contract, forms and a one week deposit, that I use as their last payment when two weeks is given to terminate care. Their son was to start care next week Monday. I just got an email saying that they changed their mind and would not enroll with me because her husband lost his job in December. He just got a job, but due to distance they decided to stay at their present daycare. I am confused as what to do with the deposit. Do I have to refund it? Please help :(

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This come down to wording you used.

If it deposit for "daycare service" or "daycare" then you have give it back because you never provided service. If it deposit "to hold place for child start care no later than {date}" then you did hold the place, and you not have return deposit.

Even if you put "non-refundable" in contract or on receipt, you would still have return it unless you clear on documents and receipt that it is to hold a place and not for the actual service of child care. Esp as you say it normally applied to final week of care, that show you normally give back at some stage.

My receipt say "Fee to hold X place in daycare to begin no later than start date. Non-refundable."

My contract say "To hold a future place for your child, a fee equal to one week of care, signed contract and all paperwork is required. Please be clear - if you change your mind, I have lost income by holding the place for your child and the fee will be forfeited. If you start as agreed and remain in the daycare for longer than 12 months, then a credit equal to the fee will be applied to your final week of care, providing proper notice has been given. There is no credit for those who leave before 12 months, who change their mind before starting, or who delay their original start date."

My first family that I signed on 6 months before I started ended up going to a different daycare. Deposit was non-refundable so I kept the money.

My deposit fees are non-refundable. If they didn't give adequate notice of withdrawal, then I would keep it. If they knew in December Dad was jobless, they could have told you then.

Quote:

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Originally Posted by suzydominguez

My contract says this ....

A deposit of one week is required to put this contract into effect. It will be applied to the last weeks payment, upon termination of this contract. I also agree to give a minimum of two weeks written notice, if I intend to withdraw my child from the childcare. if two weeks notice is given, I agree to make payments up until the last day of attendance and the deposit will not be refunded.

I think I am at a loss, I do not mention anything about holding a spot !

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I just seeing this second post now, maybe it come in when I writting my other comment above.

I not think you have leg to stand on. All this is about what happen to the deposit if they start care and nothing specific to what happen to deposit if they not start care. Since they didn't start care, they not have to give two week notice because your contract said that notice needed "if I intend without my child from the childcare" but they have not begun at the childcare and so they aren't withdrawing from the childcare. It go on about agreeing make payment until last day attendance further confirming this paragraph refers to a child who is in your care.
None of it apply to situation where child never started.

What EXACTLY did you write on receipt for the deposit? Maybe on there you clear it not refundable if they change mind and that the deposit for holding place vs the actual service of care itself?

If dad lost job in December why didn't they let you know weeks ahead? The deposit is yours no notice no refund!

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Originally Posted by crayolamom

If dad lost job in December why didn't they let you know weeks ahead? The deposit is yours no notice no refund!

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Not legally it not.

It hang on if the deposit was clear that it was to hold a place. If the deposit was taken for a service, which was cancelled before being delivered, no service was given and so the deposit has to be returned. Even if the receipt/documents say not refundable, it has to be given back if taken for a service that was never given.

There nothing in the contract that say if they decide not come, they lose the money. It clear from contract that client get money back at end of care if they leave if proper notice given. There nothing stating that the deposit not refunded if they never start care. This come down to what exact wording on receipt and if no receipt given, then the client gets money back since contract not say they lose it.

Quote:

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Originally Posted by suzydominguez

A deposit of one week is required to put this contract into effect. It will be applied to the last weeks payment, upon termination of this contract. I also agree to give a minimum of two weeks written notice, if I intend to withdraw my child from the childcare. if two weeks notice is given, I agree to make payments up until the last day of attendance and the deposit will not be refunded.

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As side issue, this not make sense.

It say that client get deposit applied to final week of care. So client give you 2 week notice, then they not have to pay until last week of care. They just have to pay for one of the 2 weeks notice because the sentence before this says their deposit is applied to the last week.

Then your paragraph further contradict because it say that the depsoit will not be refunded but the first sentence said it's given towards final bill.

If you copied this from contract, you urgently need amend contract to remove all contradiction.