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Increasing reports of child care services calling in debt collectors to chase parents for fees have industry professionals calling on the Government to change the system. 


A growing number of parents are racking up debts with child care services and receiving the child care rebate then changing to a different service provider without ever paying.

Have you had to deal with unpaid debts in your service?

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I most certainly have & know of other FDC - Family Day Care provider's with similar experiences. In my first year alone I was owed some $1000. Some debts are from the same offending parents passed on from one provider to another because of FDC's apparent privacy policy. I have said for many years now, there needs to be a 'Register' of sorts (that people aren't afraid to use) in place to protect our businesses, especially smaller businesses like FDC because provider's are also deterred from asking their customer's for a Holding Deposit or Bond. I had a family come to me from another carer, who unbeknown to me owed that carer money, left me owing 4 weeks fee's (the children came 5 days/wk) and went on to a Child Care Centre and there apparently was/is NO system in place to warn that Centre or anyone else for that matter, about what this parent had been doing. What about a system in place to warn the relevant government bodies so that the parents don't receive a rebate that really they are not entitled to. In a country where small businesses have a high 'Fall-over' rate and child care placement issues I would think after all these years something more adequate would already be in place or move QUICKLY to get something in place.

At last, I have been talking about this subject for a very long time. I am a Carer in FDC as well for 13 years and have had many do this. There is one thing to be confidential and another to have children placed knowing they owe money to another carer. So therefore I have to assume that all families potentially will do this so I charge everyone a bond that is fully refundable when they leave and fees are paid, and if they run up a bill while in care as soon as it reaches the bond amount there is no more care untill they have paid. This seems harsh but it is the only way I can stay in the industry.

The system is a joke, why would they set it up like this without something in place to report unpaid fees.

 

Yes another FDC care here, Been in the game for more than 20 years and it's getting worse. I would love to see centrelink take over the processing of the child care paperwork, I believe it would be cheaper and more efficient. As centrelink can access family payments, they could pay us our full fee and deduct this from the parent's family payment, no money handling, no need for receipts, no administration fees charged to the parent by our schemes, families would benefit by cheaper fees some parents lose more than $15.00 per week from their subsidy to the schemes for administration. The scheme claims this is to provide carers with training. A load of bunk, I have never had any courses paid for by my scheme in all of 20 years, all courses eg firstaid, mandated notifying updates etc have to be paid by the carer, God only knows what really happens to that money but it dosent get spent on us.
Thank you ladies. I'm sooo glad to hear it isn't just me because that's what my scheme kept telling me, everyone else seems to be able to manage their business but you Carol, even though I had heard other carer's in my scheme were experiencing the same problem. Maybe I'm the only one who'd speak up to the scheme office about the problem & the fact I was being sent known offending customer's. Linda, I totally agree with you & a Bond although I was told by my scheme office, 'It's NOT the FDC way', I have now and I havn't had one customer complain about having to pay a bond & how it works. It's in place in child care centre's and for this very reason. We have to be able to protect ourselves and our businesses, we just wouldn't survive. What a wonderful idea you have there Helen, with the Centrelink idea. Something has to change in this industry and we need govt. backing.

Yes thank you ladies,Im another FDC and this has just happened to me again and of course the scheme can or will not do anything to help us recoop the money owed and the parents move onto another carer, I now will be charging two weeks bond and parents must be a week in front with their fees or there is no care and their bond is forfeited. I also think there should be either a debt site to view parents or centrelink should be aware that these parents are basiclly theives, we wouldnt/couldnt go and fill up with petrol and not pay so why on earth do parents think they can have a week of valuable child care service and not pay.
Linda said:

At last, I have been talking about this subject for a very long time. I am a Carer in FDC as well for 13 years and have had many do this. There is one thing to be confidential and another to have children placed knowing they owe money to another carer. So therefore I have to assume that all families potentially will do this so I charge everyone a bond that is fully refundable when they leave and fees are paid, and if they run up a bill while in care as soon as it reaches the bond amount there is no more care untill they have paid. This seems harsh but it is the only way I can stay in the industry.

The system is a joke, why would they set it up like this without something in place to report unpaid fees.

 


The problem I think is that most people do not take our job seriously we are just still seen as stay at home mums, but we do so much more and the training involved now is just the same as if we worked in a centre, we a business people and deserve to be treated as such.
Carolyn B said:
Thank you ladies. I'm sooo glad to hear it isn't just me because that's what my scheme kept telling me, everyone else seems to be able to manage their business but you Carol, even though I had heard other carer's in my scheme were experiencing the same problem. Maybe I'm the only one who'd speak up to the scheme office about the problem & the fact I was being sent known offending customer's. Linda, I totally agree with you & a Bond although I was told by my scheme office, 'It's NOT the FDC way', I have now and I havn't had one customer complain about having to pay a bond & how it works. It's in place in child care centre's and for this very reason. We have to be able to protect ourselves and our businesses, we just wouldn't survive. What a wonderful idea you have there Helen, with the Centrelink idea. Something has to change in this industry and we need govt. backing.


Hey maybe we should all put a letter in to the governerment or notify the centrlink office of unpaid fees we have all the paretns info ?????sarah sands said:

Yes thank you ladies,Im another FDC and this has just happened to me again and of course the scheme can or will not do anything to help us recoop the money owed and the parents move onto another carer, I now will be charging two weeks bond and parents must be a week in front with their fees or there is no care and their bond is forfeited. I also think there should be either a debt site to view parents or centrelink should be aware that these parents are basiclly theives, we wouldnt/couldnt go and fill up with petrol and not pay so why on earth do parents think they can have a week of valuable child care service and not pay.
Linda said:

At last, I have been talking about this subject for a very long time. I am a Carer in FDC as well for 13 years and have had many do this. There is one thing to be confidential and another to have children placed knowing they owe money to another carer. So therefore I have to assume that all families potentially will do this so I charge everyone a bond that is fully refundable when they leave and fees are paid, and if they run up a bill while in care as soon as it reaches the bond amount there is no more care untill they have paid. This seems harsh but it is the only way I can stay in the industry.

The system is a joke, why would they set it up like this without something in place to report unpaid fees.

 

Hi Ladies, this happened to me last year to the value of over $2000.00 and now again to the value of nearly $400.00, i charge $5.00 per day for every day the fees are over due.  I had dinner with a friend last night who is also a private investigator and he did some research for me, he has informed me that we can phone centrelink ourselves and report them and with the correct documentation we should be able to apply to centrelink to have the fees oweing taken out of their payments if they are receiving any.

My lawyer however sent me some information on VCAT, it costs $39.00 to go to the courts and apply for them to be taken to court where they will be ordered to pay.  I was told that this is generally a civil matter but it can be made a criminal matter as it is classed as Theft due to deception.

Both of my thieves have done a runner but i have been informed that the courts will find them and bring them in.

I am going to proceed with the vcat matter and hopefully i will have a good outcome.



Michelle Wheeler said:

Hi Ladies, this happened to me last year to the value of over $2000.00 and now again to the value of nearly $400.00, i charge $5.00 per day for every day the fees are over due.  I had dinner with a friend last night who is also a private investigator and he did some research for me, he has informed me that we can phone centrelink ourselves and report them and with the correct documentation we should be able to apply to centrelink to have the fees oweing taken out of their payments if they are receiving any.

My lawyer however sent me some information on VCAT, it costs $39.00 to go to the courts and apply for them to be taken to court where they will be ordered to pay.  I was told that this is generally a civil matter but it can be made a criminal matter as it is classed as Theft due to deception.

Both of my thieves have done a runner but i have been informed that the courts will find them and bring them in.

I am going to proceed with the vcat matter and hopefully i will have a good outcome.

Thank you for such valuable information Michelle. I wonder if there is a time limit applied on how far back the outstanding debt is due from can be claimed for, like a 'Statute of Limitations' type of thing?

VCAT sounds like the way to go if these 'Thieves by Deception' do not receive Centrelink.

Way to go andthanks again.

Carolyn

 

Michelle Wheeler said:

Hi Ladies, this happened to me last year to the value of over $2000.00 and now again to the value of nearly $400.00, i charge $5.00 per day for every day the fees are over due.  I had dinner with a friend last night who is also a private investigator and he did some research for me, he has informed me that we can phone centrelink ourselves and report them and with the correct documentation we should be able to apply to centrelink to have the fees oweing taken out of their payments if they are receiving any.

My lawyer however sent me some information on VCAT, it costs $39.00 to go to the courts and apply for them to be taken to court where they will be ordered to pay.  I was told that this is generally a civil matter but it can be made a criminal matter as it is classed as Theft due to deception.

Both of my thieves have done a runner but i have been informed that the courts will find them and bring them in.

I am going to proceed with the vcat matter and hopefully i will have a good outcome.

Gday all

FDC are notorious for their non support in financial matters, they also do not give accurate information as their one goal is to support parents not carers. One bit of false information is that you cannot inform others if a parent has left owing money. In fact this is not breach of confidentiality and other carers can be warned if you know where the parent is going. Also it is not discrimination if you decide not to take on a family that you have been warned about. I haven't taken notice of FDC's nonsense for years if in doubt I just ring the legal aid phone service which is free for general legal questions. Good luck with your action Michelle.

I do not charge a bond because in my area there are too many carers and not enough children to go round. But if a parent gets more than a week behind in payment on a regular basis I charge them in advance. If more than a fortnight in arears I refuse care until it is paid and they risk losing their spot as I will not hold it for them, I also warn other carers in my area if that family leaves care. 

Thank you so much michelle for this information, I will certainly put into place the $5 charge per day and contacting centrlink for money owed.

Michelle Wheeler said:

Hi Ladies, this happened to me last year to the value of over $2000.00 and now again to the value of nearly $400.00, i charge $5.00 per day for every day the fees are over due.  I had dinner with a friend last night who is also a private investigator and he did some research for me, he has informed me that we can phone centrelink ourselves and report them and with the correct documentation we should be able to apply to centrelink to have the fees oweing taken out of their payments if they are receiving any.

My lawyer however sent me some information on VCAT, it costs $39.00 to go to the courts and apply for them to be taken to court where they will be ordered to pay.  I was told that this is generally a civil matter but it can be made a criminal matter as it is classed as Theft due to deception.

Both of my thieves have done a runner but i have been informed that the courts will find them and bring them in.

I am going to proceed with the vcat matter and hopefully i will have a good outcome.

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