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Bad Debt Collection


sadiesmith
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Have you tried 'threatening' the bad debtors that you will take legal action to retrieve outstanding monies.

 

We did this once and it worked. We could never have afforded to take them to court.

 

Debbie

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Can anyone recommend anyone to collect bad debtors?

Crikey - is it a 'huge' amount?

 

Could you offer a 'payment plan' - are the children still with you or have they moved on?

 

I have two large sons - will lend them to you if you want to 'send the boys round'! - Sorry not funny I know........

 

Will think some more about this.....

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do the psla not have a dept that can assist you there is also some firm specialises in this but I cant remember who they are and I threw the leaflet away.

killowengirl

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I would personally use the Small Claims Court which you can access online

 

Firstly, I would do your homework. It helps if they definately have a job and you know where they work. Do they own their own house.

 

Going through the small claims court involves several steps. You do have to pay an amount up front for the various steps, but I have found this the far most effective method of getting your money. The reason I asked if you know if they have a job and more importantly the name of the company and address is that you can ultimately have them pay via their company payroll. Again it means you have to fill in more forms and the courts usually only give you an 'affordable' amount each month. For example on £1,500 I got £50.00 a month, but surprisingly I have just received the last instalment. I would also claim against both parents (if you know them). That way you can take them both to court and claim double the money. It does take about 3 months for this whole process.

 

Don't bother with Debt Collectors or whatever they pretent to call themselves. All they do is charge you an upfront or monthly fee and then just do what you can do yourself - phone them up and write to them. They have no real powers (despite what they say and claim). Ultimately you have to spend more money to put your clients through litigation and at the end of it there is still no guarantee that you will get any money back. They will claim that ultimately you will. However, experience with two of these companies has shown me otherwise.

 

I would be interested if anybody has had positive experiences with debt collectors.

 

And lastly, if they don't pay up. Report them to the Tax Credits. They probably wont' take much notice, but it might make you feel better. At the end of the day these parents are claiming fraudulently as they are not passing on the money.

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Guest pamgreen

Have any of you got a debt recovery policy in place. In Warwickshire we are now supposed to have this policy in place. I would be interested to see one please. According to our advisory teacher if you dont have a debt recovery policy it is very difficult to get any money back that is owed to you

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Have any of you got a debt recovery policy in place. In Warwickshire we are now supposed to have this policy in place. I would be interested to see one please. According to our advisory teacher if you dont have a debt recovery policy it is very difficult to get any money back that is owed to you

That's interesting...have never heard that before......

 

Sunnyday

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We used the Small Claims court to try to retrive a bad debt: parent (single & with no contact with other parent) turned up, agreed she owed the money, said she worked part time & it was agreed how much she'd had taken from her wages to come to us. She quit her job. Apparently, once she got another job, we could ask the court to have the money directly taken from new company wages - but would have to pay again to go to court.

 

We will not use Small Claims again. We have had a couple of other parents make good on their promises to pay back at £10 per month...

 

But in general it's been a matter of being very firm & sticking to 'You pay or you take your child OUT'. Sorry, not much help!

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.

And lastly, if they don't pay up. Report them to the Tax Credits. They probably wont' take much notice, but it might make you feel better. At the end of the day these parents are claiming fraudulently as they are not passing on the money.

 

You dont know this, not everyone claims or qualifies for Tax Credits

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Guest pamgreen

According to our advisory teacher. you have to tell people of your policy on debt recovery if you have done this then the legal people will help to recover the debt. It sounds easy but I know it isn't. But I would be really grateful if some one has a policy for me to look at. In September our advisory teacher and childcare support officer are visiting all of the settings in warwickshire to go through a health check of the setting. No they are not looking to see if we are ill!! But they are checking that we have all policies and procedures in place, They also check to see we are up to date with our SEF and if we have the above policy in place. it is a whole load of things they go through

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