Childcare Providers Using Collection Agencies for Past Due Parents

When families have kids who are not yet in school but both parents need or want to work, they typically turn to childcare or daycare providers to fill in the gap during business hours. Daycare providers are responsible for watching the kids, feeding the kids, and in most cases teaching the kids but mostly to ensure the kid is safe while the parents are off to work. In return for this service, the parents duty is to pay the daycare owner on time and in full for whatever the agreed upon amount was when the child was enrolled into the daycare center.

Many parents have complained about the recent rising cost of childcare because many say they aren't getting raises at work through the sluggish economy. The fact is, childcare providers are experiencing a rise in cost because of power, food, insurance costs all rising each year by quite staggering rates compared to the overall economy. Most childcare providers are in business to make a profit, but also they aren't trying to get rich and want the parents to feel as if they are getting a good value by providing quality care at a reasonable price. At the same time, they can't continue to keep prices the same when all operating expenses are going up every month. As the recession has continued, some parents have found themselves taking pay cuts or even worse being laid off permanently. They don't have time to reduce the family budget because major bills such as automobiles, home mortgage, insurance and power. When the income has been reduced in half in some cases, bills such as childcare payments go unpaid and that leaves the childcare providers in a tough situation.

Providers are normally willing to work with parents who may fall late one week or so. If they get a feeling though that the parent will not be paying for months or has no intention to pay anymore, they have no choice but to stop providing service and demand payment. If the payment goes unpaid, the kid is no longer allowed in the services and the parent is still responsible for paying the remaining bill. If the parent refuses to pay the bill, this is where many providers are now turning to third party collection agencies to secure the payment for them. Collection agencies can use information given to them by the providers to locate the parents and call them over the phone or send letters out demanding the payment. Parents will realize that they are getting late fees and interest, much as if they were past due on a credit card. While collection agencies enjoy the recession, providers still don't get thrilled over the idea of a debt collection agency calling parents that they once knew as loyal, trustworthy customers whom also trusted them to take care of the kids. At the end of the day though, providers are realizing that some money is better than none and they will leave the friend making up to the kids.

Source: http://ezinearticles.com/6290845

davy jones aaa green lantern movie canada day box office mojo apa style 30 rock