..to think childcare provider's payment terms are completely ridiculous?

[SafferUpNorth]

Having found an afterschool club place for my DS, I must admit I didn't scrutinise the payment terms too carefully. Now I've been slapped with a 10% late payment fee twice in a row the last two months and am flatly refusing to pay it - AIBU? Here's the deal:

Their invoice for a particular month is usually issued midway through the previous month, and due on the first. So payment terms two weeks, not the usual 30 days. And if you don't pay by the first, you're charged a 10% late payment fee within a few days... even if the service (ie afterschool club service) has not even been provided yet!

So, this evening I've had an updated invoice for August care. Invoice was issued on 18 July and was due on 1 Aug. Now a late fee has been added even though the first session of the month will only be delivered on 16 Aug.

And on 16 June, I was sent an invoice (due on 1 July) for holiday club places on 31 July and 1 August. So the invoice was due two weeks before the service was delivered. By 9 July I had been issued a revised invoice with the 10% late fee added... even though the actual service delivery was still 3 weeks away!

AIBU to refuse paying the late fees?? What are my consumer rights here?

It sounds like their terms are clear enough 🤷🏻‍♀️

I’m a childminder and I charge in exactly the same way.

Why do you think service has to be provided before you pay? The terms are that you pay in advance for booked sessions, seems standard practice to me.

Most childcare providers ask for payment in advance to be fair

My childcare charges a fee if i miss a payment. It’s pretty normal

Don't see the problem, our childcare is paid the same way and it's fine

They made their terms pretty clear...you got a late payment fee last month so why haven't you made this month's payment on time?
Most (if not all) childcare providers require payment on advance...so it doesn't matter when the first session is if you don't pay by the invoice due date then of course they can charge you a late payment!

Just pay on time.... these terms seem standard

Seems normal to me. You agreed to the payment terms when you signed up to it.

Seems fairly standard. Most service providers whose services are consumable charge upfront eg tour operators, supermarkets and childcare providers.

Their payment terms seem pretty clear and like most childcare providers to be honest and my son's do it the same way payment is by 1st of the month and is given out 2 weeks prior. However, I do myself a spreadsheet for the whole year so I know what I will be paying for the next month means there are no surprises or late payments yes I'm a bod.

Is there a reason you can’t / won’t pay on time?

I pay for dc's after school care in advance also...seems to be the norm.

Having worked in a Afterschool club on a zero hour contract it was bloody annoying when you would get good shifts based on how many kids were booked in...only for half of them to be a no show so staff was sent away. Now its a case of pay when you book, at least then staff will get work and it means spaces aren't being booked for no shows and that space can be filled by someone who is willing to pay beforehand.

I am a childcare provider and I charge in advance. I have to pay staff, rent, insurance, and buy resources, like food, all in advance so I need payments in advance. When parents pay late, it causes significant issues for me. I might not be able to take my own wages, for example. I don’t charge late payment fees, though. I probably should start doing that.

Yep agree with others. Seems to be standard to pay in advance. We pay for the whole month by 1st of the month.

There are plenty of things you are required to pay in advance for if you want a guaranteed service. Childminding services are no different - you pay in advance to guarantee your slot.

It's pretty standard for a lot of things

Why didn’t you pay by the first? you knew it was their terms and you knew they would charge you a late fee as it has happened once already. So what did you expect would happen this time?

So you were too lazy to read the rules, and now you're whining that you didn't know them - because you didn't read them.

Sounds right to me. Out invoice comes out on the 25th, due by the 1st.
I don’t understand why your set up is unreasonable.

I used to work in a nursery and fees were paid in advance. Its normal

It doesn’t matter that the service hasn’t been provided yet. There’s a contract.

Their part of the contract is that they provide childcare.
Your part of the contract is that you pay up front.

If either party is unhappy, then terminate the contract.

If either party breaks the terms, then there is legal recourse open to them through the small claims court.

Sounds totally standard to me - and I've looked in to what various companies do because I run a childcare business.

We haven't charged late fees historically but we're seriously considering starting to as the number of people who mess you around is insane.

Payment in arrears is a complete non starter. We've always been payment in advance but anytime we've made exceptions we've got bitten in the ass. Every. Single. Time. The only way we have to make people pay (apart from a possible late fee) is that payment is in advance and if you don't pay, then no care is provided.

Especially at the start of term and over holidays doing invoices much more than 2 weeks in advance is really difficult as there's so much chopping and changing going on.

You know what their payment terms are. You should have a reasonable idea of what your bill is going to be. Just pay it!

So can you see you ABU OP?

Exactly how our Wrap around club charges. Fees were previously charged in arrears, but oriole then ran up debts of several thousand pounds (easily done with two or three children in full time) .