DCP wants deposit refunded?!?!

[gravy_train]

I am a new daycare provider and have been holding a spot for a (not too close) friend of my husband for months before I opened. DCM and I have been talking regularly while we were both on maternity leave, had a couple of playdates with our babies, etc.

DCG was supposed to start with me on March 4th.

In November I emailed DCM to ensure they were still interested in my daycare. I received a response that they were 100% still interested. I explained at the time that I had already turned at least five potential clients away for the spot that they wanted.

In January I insisted on a 2 week deposit (which they gave me), provided them with my policies and procedures and contract (which they never signed and returned to me).

In January I also interviewed another family with a 12 month old who wanted to start 2 weeks after this other DCG. They wanted me and I wanted them, but because I am new to the daycare field I wasn't sure that I could meet the needs of two 12 month olds in addition to my current kids. So, I told this other family that I couldn't take their baby.

On Friday, 2 weeks before they were to start, DCM called me to say that she has found other arrangements and no longer needs me. She then asked for her deposit back.

My contract states that my deposit is non-refundable and is to be used towards the last two weeks of care.

This is my first time having to deal with this, and I dont think I should have to refund her deposit. They are giving me two weeks notice for a spot that could take months to fill, not to mention the fact that I had another family who would have been a great fit but turned them away to give priority to my 'friend.'

What would you do if you were in this situation?

[jodaycare]

My contract states that, the deposit is non refundable if the child does not start care. However you said that they never signed and returned the contract so I am not sure what your options are. Personally after all this time I would not return t. As for the other family, try calling them to see if they have found care yet.

[sunnydays]

That's a tough one because they never actually signed the contract. That is why I tell parents that I cannot secure the spot for them until I have both the signed contract and the deposit...then it is clear. You should not have to return the deposit, but then, how can you prove that it was a deposit if there is no contract signed? Not sure how a judge would view that in court. Maybe someone else has some better advice, but I would probably chalk it up to experience and return the deposit.

[jazmic]

When you were e-mailing back and forth about the deposit, did you mention at any point that it was non-refundable? Outside of your contract, do you have it in writing that she understood that it was non-refundable?

[gravy_train]

I have a text where I explained that the deposit is to protect myself from loss of income should a client pull their child from my care without giving me proper notice. My contract states that I require 4 weeks notice if the child is in my care.
She gave me 2 weeks.

I am adding a clause right now that more clearly covers me in the event that a child never starts care.

Court? Yikes!!

[gravy_train]

Oh yeah, I should add that in response to that text she wrote that she would never do that to me.

[Skysue]

I have to agree with Sunnydays on this one. It does bite that they are even asking as you have been holding the spot for quite sometime.

I would have a chat with the family and tell them the loss of revenue not only for holding the spot but for the loss you will be experiancing do to them changing there minds. Let them know that it may take some time to fill there spot.

If they fully understand then they should let you keep the deposit.

[jazmic]

I think if you have something in writing that says that the deposit is non-refundable, then you can refer to that. You could say to her "on xx date, I sent you the following text stating _____. So unfortunately, your deposit it non-refundable." Then explain to her what options she has. Can she use up the care? Do you even want that?

[gravy_train]

In my policies and procedures it says:
"If you decide to terminate care, I require written notice four weeks in advance of your termination date. If your termination breeches the terms and dates outlined in your contract, your deposit will not be refunded unless otherwise discussed."

And:
"I require a non-refundable four week deposit at the time of registration, which will be applied to your last four weeks of care as outlined in our contract."

Do you think that is clear enough to cover my butt should they try to sue me?? OMG now I'm super nervous about this!

[jazmic]

Your policies don't apply in this case cos they never signed your contract. That's why I'm wondering if there's any other written communication which would prove that she knew it was non refundable.