Best way to get money owed.

[butterfm]

Hi,

My wife opened a day nursery at the end of last year and has a parent who owes her over £2500 in child care fees. My wife has aked the parent verbally on numerous occasions to pay the money and has also sent a letter asking for ful payment by a certain date. The parent has been promising for months to bring the money but never does and the deadline date in the letter has now passed.
We are now looking aternative options to pursue the money. We will be informing the tax credits office that the money she has beenclaiming for childcare has not been used for purpose however I dn't tink that will help us retrieve whatweare owed.

Can anybody advise on the best way to pursue mmoney like this please ? I don't to go down the route of expensive solicitors because I'm sure the cost would eat into or exceed what is owed.

Can things like this be pursued through the small claims court ? Unfortunately as this is a new busness they can't really afford to just write the money off.

Thanks,
M

 

[OldWelshGuy]

I would say that she doesn't have £2500. so the answer is that as of this week she pays all her weekly fees, plus an agreed amount to the business. I honestly can't see any other way of getting it without going legal and losing a client.

I would sit her down and calmly lay out the position, I would say 'look you owe us £2500, you have already had OUR money from tax credits, and have not passed it on to us. Unless we get our money back, we will have no option other than to go to tax credits of the situation, and I am sure neither of us wants that.

here is what I suggest . ... then tell her she pays you weekly the full amount due, and then an agreed extra amount until the debt is paid off.

That is the route I would take, as it gives her an answer to what is probably a very worrying situation, plus it ensures the business has that child until the debt is paid off. If you stop care, then you can pretty much kiss goodbye to that money IMO.

 

Bit confused is the tax credit to be used specifically for child care.?

If not I don't see how informing the tax credit people comes into play.

Surely the small claims court would be the route.?

Earl

 

[OldWelshGuy]

Bit confused is the tax credit to be used specifically for child care.?

If not I don't see how informing the tax credit people comes into play.

Surely the small claims court would be the route.?

Earl

Under the WFTC system, you can only claim child care allownace if you are using a qualified and registered (named) carer. This person has named the creche, had the money paid into their account, and not passed it on. In short it could well become a fraud claim.

 

[butterfm]

Old Welsh Guy - thanks for the response. Unfortunately we've aready tried the softly softly approach and asked her to pay extra on top of he wekly amount but she ended up just continuing to pay nothng. She then stopped bringing the child to nursery full stop without warning. She has also recenty been on holida and bought new car so I find it difficult to accept that she can't afford to pay us anything. My wife no longer allows her to bring the child to Nurery. She isn't a valuable customer as she dosn't pay so I'm looking t the options t try and recoup some of what she owes.

 

[butterfm]

Srearl - Old welsh guy has got it spot on with regards to teh tax credits. She's affectively claimed tax payers mone to pay for chil care and then used it o something else which is fraud.

 

[Hombre]

Solicitor's letter then if all else fails small claims court.

 

[butterfm]

In terms of a small claims court - can this route be used for this type of issue? If so what are the real chances of getting the money that way ?

 

[OldWelshGuy]

If you have tried the carrot then it is time for the stick.

I would contact her tell her that she now has 7 days to make satisfactory contact, or you will apply to the county cour t for a judgement to be issued, and at the same time will notify HMRC of the misuse of child care funds.

Then, if she has not complied within the 7 days, file the papers.

 

[Charlie B ACS]

It can be reasonable. Depending on what assets they have

As well as a sending a bailiff to the property there are further options to enforce a CCJ:

Do you know if they own their home? A charging order could be used.
If the car is owned by them, and not leased or on HP, then a bailiff can sieze that to reciver funds.
If you know where she works then an attachement of earnings order can be sought.

 

Under the WFTC system, you can only claim child care allownace if you are using a qualified and registered (named) carer. This person has named the creche, had the money paid into their account, and not passed it on. In short it could well become a fraud claim.

Oh right thanks.

In my day if we needed extras for the kids ,we used to send em out to sweep chimney's except for the little fat one.

Earl

 

[butterfm]

All - thanks for the responses. It's been a big help.

M

 

[Minuteman Press]

In my day if we needed extras for the kids ,we used to send em out to sweep chimney's except for the little fat one.

I am surpised in your day their were any fat ones!