Active discussions

Meet the Other Phone. Child-safe in minutes.

Meet the Other Phone.
Child-safe in minutes.

Buy now

Please or to access all these features

Talk
AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Do I keep the deposit?

25 replies

JenniPenni · 07/04/2010 21:36

I am a childminder. I had a client sign a contract and pay a deposit, only to change their mind and sign up to a nursery, now requesting deposit back. I have turned down other inquiries in the interim as I thought the space was filled.

AIBU to keep deposit?

Interested to hear your thoughts, thanks!

OP posts:
zapostrophe · 07/04/2010 21:38

This reply has been deleted

Message withdrawn

Bramshott · 07/04/2010 21:38

No, of course you need to keep it - for exactly the reasons you state - you have turned people away in the interrim. I'm a parent with a CM, not a CM myself BTW.

thesecondcoming · 07/04/2010 21:39

This reply has been deleted

Message withdrawn at poster's request.

LoveMyGirls · 07/04/2010 21:39

YANBU

Bramshott · 07/04/2010 21:39

Sorry, that should more correctly have read "Yes, of course you need to keep it"!

thisisyesterday · 07/04/2010 21:39

well, what does it say in the contract? does it say that it's non-refundable?

i'd be tempted to keep it, but i don't know where you stand if you haven't said in advance that that would be the case iyswim?

vanitypear · 07/04/2010 21:41

YANBU assuming it's in the contract.
But if you manage to fill the place ok in the interim without too much hassle without financial loss, refunding all or part will give you good karma...

TottWriter · 07/04/2010 21:41

Agreed, YANBU - did you tell her it was a non-refundable deposit beforehand though? I can see why she might have made an assumption if not, though that doesn't change the fact that you've lost custom because of her. How long was the gap between her signing and her changing her mind?

If you explain the situation, it should be alright, but definitely make sure that the deposit's status is laid out nice and clear in the contract in future to avoid this happening again.

porcamiseria · 07/04/2010 21:41

keep it, if its contractually OK , do it!

wolfnipplechips · 07/04/2010 21:42

No keep it when i started my company this used to happen all the time at first like a mug i gave it back often funding the loss myself. People are cheeky they wouldn't ask an established nursery for it back.

Original poster
JenniPenni · 07/04/2010 21:46

thesecondcoming... haha I have an outstanding grading.. no doggies ;)

OP posts:
Original poster
JenniPenni · 07/04/2010 21:49

The contract states this exactly: 'the deposit is refundable (used against the last month of care)'

... so they do get it back in the end... I like to keep the deposit to the last month of care in case a parent defaults.

OP posts:
Original poster
JenniPenni · 07/04/2010 21:56

ps: the time btwn signing and changing of mind is 35 days

OP posts:
vanitypear · 07/04/2010 21:59

I don't think your contract is as clear as it could be...

GlastonburyGoddess · 07/04/2010 22:03

35 days! yanbu, cheeky mare asking for it back imo, she wouldnt get it back with it nursery. if she challenges you tell her youve had to turn away X amount of children since and that is what a deposit is for-for holding the place open, not your fault if she has since changed her mind.

Pozzled · 07/04/2010 22:05

Hmmm I think you are entitled to keep the deposit, after all that is the point of it. But I do think you should re-write that part of the contract, I can see why a parent might think they could get it back. They seem to view it as a safeguard for payment of fees rather than holding the place for them.

MillyMollyMoo · 07/04/2010 22:06

You keep the deposit.

Silver1 · 07/04/2010 22:10

I think the wording is fine, and is often used with private schools.
It is reasonable to keep the deposit, as it was there to protect her from you accepting a child in the interim and letting her down, and you from loss of income in turning away children in expectation of her using your service but she then reneges.

thisisyesterday · 07/04/2010 22:10

agree, that makes it sound like you're just paying a month in advance. which you are, effectivly.
and as she hasn't had her month she wants it back

Original poster
JenniPenni · 07/04/2010 22:10

Thanks everyone! I will reword the contract so it's clear as anything. Never had to refund one before. Learning curve!

OP posts:
nannynick · 07/04/2010 22:15

If the childcare place is available and the parent is paying to hold that place for their child, then isn't that a Retainer Fee?
In this situation, that Retainer Fee would be payable for the period of time from signing the contract to giving notice that the place was no longer required.

The contract states this exactly: 'the deposit is refundable (used against the last month of care)'

But does the contract say anything about what happens if care isn't started... as it looks to me as though you are saying the deposit is refundable.

Have you charged a retainer fee as well, or is this deposit in some way a replacement for that?

larks35 · 07/04/2010 22:23

I think you're on sticky grounds here, if I were said parent, I'd be tempted to ask you to care for my DC for the month you've been paid for, unless it had been made clear that this was a retaining fee and therefore non-refundable.

I do think said parent is unreasonable for backing out of the deal and feel bad for you, but perhaps you should look at how you word your contract.

Fluffyone · 07/04/2010 23:00

Does the contract also say that it is subject to a month's notice of termination? If it does, then that's why you keep the deposit.

FourOfFour · 07/04/2010 23:08

Well, although its not explicitly stated, I would read an implied term into the contract that if there is no last month of care, then the deposit is not refundable.

As there has been no care at all (at this parent's behest) then there cannot be a last month of care, and hence no refund.

Is it a standard clause? What do other childminders have in their contracts?

CUKAmbassador · 07/04/2010 23:37

If the client has let you down, and you have lost out, then you should keep the deposit.

People shouldnt mess you around.

New posts on this thread. Refresh page