To send legal letter chasing this owed money

[TomTomRunner]

I had a childminding business that I had to close down due to Coronavirus. Somebody owes me fees from a year ago. As background as to why I let the fees build up, the fees were always late anyway while they waited for child tax credits. I always gave them time to pay and the money came through in dribs and drabs. For the final bill I gave them even more time to pay, in installments etc but they didn't, they fobbed me off at the time saying they were still waiting for their child tax credits payments then after Christmas, they said they never got any money from child tax credits.

I've sent reminders, all ignored and then this woman was scurrying away when I saw her and even her child, who I was enormously fond of, blanked me when I said hello (she is at secondary school now, this was really more hurtful than the money ). I feel totally taken advantage of, obviously.

Then before lockdown I saw a post on social media recommending a beautician, I've never been able to afford going to a beautician!

My family could seriously do with that money now.

The letter is the last stage before pursuing through the courts. I doubt she will pay.

I know I might have to wait but are court systems even working now? Is this worth doing?

How much is it for?

Yes there is a case for pursuing at all costs due to the principle.

Alternatively you can consider whether the emotional and financial energy is worth chasing the money?

I think you can download legal sounding letter templates, might be worth it to scare her into paying. Firm, but fair. Not too threatening though!

Go court or debt agency. A good debt agency takes away the emotional and financial energy. I would take the child off your books... Yes it is ruthless, but you are a business. You've been bitten, so in future, I would offer the place to another child if there is no payment forthcoming earlier and put it in your T&Cs.

Could it be something you could pursue through a court claim (aka small claims court)?

You might be able to do the whole thing online with fairly minimal hassle: www.gov.uk/make-court-claim-for-money

The beginning phase of the small claims court is online, so it will still be running. Costs are very low. Do you have legal expenses cover on your business insurance and will it cover fee recovery? Even if it doesn’t, a letter saying “I’m sorry, I’ve given you more than enough time, if you don’t pay up I’m going to have to proceed to court action” is easy to DIY, and the small claims track is designed to be possible without professional assistance. If you’re a registered childminder then presumably you’re good with filling in forms.

Sell the debt if you can. You'll get less of it, but you'll get something and no more of the hassle. She's not paid for a year, she's going to be like getting blood out of a stone.

How much are we talking here?

You aren’t being unreasonable at all, she’s a CF and you’ve been more than reasonable in the past.

It’s worth pursuing in small claims, however don’t expect the funds soon (unless she has a sudden change of heart). Courts dealing with urgent business only at the minute and even after that judgement/enforcement a while away.

Write a letter first, send it recorded delivery and keep copies of everything, this is your funds which are you entitled to recover.

Yeah need to know how much it is.
£50 forget it.
£500 small claims court.
Either way she’s a CF and she knows it.

Do it all online.

Yes the court is open. Send a letter before action then sue her arse. It's not difficult.

Hi, £400. My insurance will cover the cost, all the paperwork etc.

I'm wondering if the spend the child tax credits rather than pay me. She'd say, 'oh, haven't they paid you directly, I asked them to' when I had to chase her up.

The child doesn't come to me anymore, my children loved her too. They ask about her and why she didn't come to see us (on her last day I said please keep in touch, pop in when you are coming back from school). I've said they moved away (partly true as they did move address but not that far).

I'm not very good at the business side of things.

the fees were always late anyway while they waited for child tax credits. I always gave them time to pay and the money came through in dribs and drabs. For the final bill I gave them even more time to pay

As you're learning now, this was a pity; a little leeway's fine, but when you're running a business and people keep messing you around, the best route is to simply get rid

Since you have insurance to cover the costs I guess it's worth a try with the small claims court, but frankly I wouldn't get your hopes up. You can't get blood out of a stone, and when she inevitably pleads poverty you might get a judgement to pay a fiver a week if you're lucky ... and you'll be luckier still if she pays more than a couple of them

You are legally entitled to also add interest and £40 per late invoice (and additional fees for amount of time it's late)/

Suggesting this and sending a new invoice for the lateness may help:
www.contractorcalculator.co.uk/late_payment_calculator.aspx

You could suggest a payment plan, of £100 per month or something.

Say that you won't issue the late payment fee or go to court if she settles this way.

If the money from benefits is for child care specifically then that is also fraud?

How much
Money are we talking OP ?