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The contract requires that a parent let us know no later than the 20th of the proceeding month if he or she does not intend to enroll the child the following month. This policy assures some stability in a constantly changing and vulnerable business and is necessary in order for us to have enough time to budget our staffing for the following month. It also gives the parent who has a child on our waiting list enough time to make the change from current child care arrangements to our programs. Sometimes this process takes two or three weeks.
Now, in regards to collection procedures, we certainly do not waste valued administrative time in singularly collecting $20.00 debts in Petty Claims Court. We wait until enough debts have accrued to make it worth our time to collect. Our latest collection efforts represented dose to $600 in delinquent payments to the Center.
We collect for three reasons: (1) It is sound business practice and commonly used by many small businesses; (2) Ojar monthly contract is not “legally binding” and is hot enforceable if we do nothing about bad debtors, and (3) We need the money. Most of our parents respect our contract; it offers dual protection to both parents and to the Center. The policy is established and enforced by our Board of Directors.
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