problem with day care center.
Date: Wed, 04/20/2011 - 06:50
Here is the story. it may be a little long.
I got a letter from a collection debt attorney. My daycare owner is claiming $520. It does not itemize the amount by the way, but I think it includes the entire late fee which I do not agree.(contract says ($40 per month)) Anyway, Here is what happened.
March 1, 2010. I called the daycare center and told the owner we are planning to stop sending my daughter to daycare due to my wife???s labor. I asked him if we owe him anything. He said ???No???. He will take care of everything. there is 30 days written notice in the contract. I mentioned to him. He told me not to worry.
March 8. I called him again. I told him we are picking up my daughter's stuffs and sign any paper work. I asked him again if we own anything. He said ???No???. He will take care of everything. My wife went in and asked again if we own him anything. He said ???No???. Meanwhile I did not send my daughter to the daycare since the last day in Feb. Actually, we did not send about a half of days from the beginning due to the weather and sickness of my daughter.
August 22, In august 2010, I received the first bill with balance of $200. Never received any bill until August..
August 23-24. I called the owner what the balance is for. He told me that the balance is for between March 1 and March 5 when we never sent our daughter to the school. (I am not sure even really sure if he is claiming for March 1 to March 5, but at least that's what He told me. I did not want to argue because I did not want it to become a hassle. So, we agreed to pay $150 verbally on the phone. Therefore, I do not have any paper work. I asked for the new bill statement for $150. But, Never received it.
September. 27 I received a new bill stating $480 dollar. This bill includes the entire late fees from March to September, $40 a month. The contract states $40 late fee. However, as I stated I never received a bill from March to august. I felt it not fair to pay any late fee since I never received any bill for the months he is claiming for.
September 29. I called to discuss the matter and was told that he is out of country. Will not be back for a couple of weeks.
Oct 6. I sent him an email stating that the entire late fee that were charged is not fair since we never receive any bill until august and we agreed that I would pay him $150 if I received the bill.
Oct 8. I sent him another email to ask for $150 bill as we agreed.
Oct 18 He sent me an email to pay him $350.
Oct 18. I called him saying that I will pay $150 if I receive the bill. But will not pay him anything other than that. He said, ???Would you pay if I lower the bill to $300, 250 and 200???? Again, I told him that I will not pay until he send me the bill for $150 which we agreed.
March 14, 2011. My account called him for EIN for my tax return and he refused to give my accountant the number.
March 16, 2011. I received the letter from a collection agent, lawyer, requesting $520.
April 1, 2011. I requested a verification letter and stated that the amount of $520 is incorrect. I am willing to pay $150 or payment that would make sense and reasonable and will NOT pay for those late fees that OC is trying to get from me.
April 19, 2011. I received a letter back from them which includes a letter from OC and a statement of $520 which also includes all the late fees. In the letter that OC wrote, he says that i agreed to pay him $150 and that is legal and valid and he did not receive a 30 day notice from me which He told me not an issue in March of 2010. Now, He is requesting $300(again, no justified amount without any basis) instead of $520 within 10 days. . If he is not received the payment, he is going to add interests of 18%.
I never refuse to pay him $150 but requested to receive a bill from him and never received.
I kept insisting him that all the late fees he is trying to get is illegal and refused to pay him that.
Now, I am thinking sending him a payment of $150 plus $40 late fee for august 2010 since it was the first bill I ever received before this thing went into this mess staring in september of 2010 at the time I tried resolve this issue with him as stated previously.
I thought I had 30 days to investigate this and it is illegal to request the payment any term shorter than 30 days and illegal to threaten to add interest on top of the original debt in my case, $520.
If this goes to a hearing, if the final judgement comes out to be $150 would i have to pay the court fee? Shall I pay him $150 now so that I can avoid the court fee? Can I win this case?
I know if i just pay him $300, this may ends. But, hate to pay him because to me it is not legit claim since he never send any bill to me.
You have a 30 days time period to validate/dispute the debt afte
You have a 30 days time period to validate/dispute the debt after the debt collector contacts you. If you're unable to dispute the debt within the 30-day period, the debt collector has the rights to assume that you agree the debt to be valid.
If it was written in your contract with the daycare center that you'll have to give them a month's notice before ending the contract, then you're at fault if you haven't given that notice, though I understand that the owner of the daycare center had never asked you to do so. You can offer him the required sum of money and settle the matter outside the court. This will help you as well as the other person to get rid of hassles of a court case.
You need to read the contract carefully since it is obvious he i
You need to read the contract carefully since it is obvious he is trying to fall back on it. If there is not anything in that contract that can allow him to charge interest, then he can't charge interest. Further, some states have laws that only allow for a certain amount of interest to be charged, like 6% for example.....so you may want to check into that.
You should make complaints to everything you can think of...the BBB, etc since a daycare can't afford to get bad listings he may be more inclined to work with you if you make a big enough stink about it.
Also look for any clause that talks about early termination or not giving 30 day notice......also look at the late payment and see if it is a one time payment or a recurring payment.
