Former daycare calling in debt collectors for fees that they don’t deserve

[Anonymous]

During the pandemic our former daycare closed down as many did. They then did several shady things, such as attempt to collect full tuition for people who were leaving after they charged them only partial tuition for the month. (Like they tried charging 50%tuition, but if you chose to leave, then they expected you to pay 100% of the tuition for all of the months they were closed). They did many shady things. All while still getting PPP money and setting up a Gofundme. Subsequently, many of the families pulled out, including myself. They sent me multiple invoices for the last payment, all different amounts without any actual explanation as to what they were for. So I calculated how much I thought I owed based on tuition and discounts and paid it. It was probably a 600 difference from their highest invoice.

Well, other families also did something similar and I’mmfinding our that this place went to a debt collector to try to get their money from these families. We haven’t been contacted yet- but what are my options here? Should I get my lawyer involved? I’ve never had issues with credit and have always paid my bills, but this daycare administrator was so horrible to all of us during the pandemic that I am just furious.

[Anonymous]

What does your contract say?

[Anonymous]

Sorry op. What daycare?

[Anonymous]

Contact their licensing board.

[Anonymous]

If a debt collector calls, they are required by law to tell you certain information about the debt. That information must include:

The name of the creditor,
The amount owed,
That you can dispute the debt and that if you don’t dispute the debt within 30 days the debt collector will assume the debt is valid,
That if you dispute the debt in writing within 30 days the debt collector will provide verification of the debt,
That if you request the name and address of the original creditor within 30 days, if different from the current creditor, the debt collector will provide you that information.

If you dispute the debt, go to the Consumer Financial Protection Bureau website and use one of their debt dispute letters to submit a written disputed within 30 days of the call.

They cannot call you again until they provide you with verification of the debt.

[Anonymous]

So her original contract didn’t really have anything in it with regards to long term closure- and then she just kept randomly sending emails with changing policies that none of us ever agreed to. In the end she came up with this ridiculous COVID policy relieving her of any liability that we refused to sign and that was just it for us.

I guess he other options is to go online and really ream her out (all factual). But I hate to do that. The teachers were nice it’s just the administrator that’s a hot mess. This administrator even tried suing one of the teachers for trying to leave before her one year contract was up.

[Anonymous]

Name the place. No reason not to.

[Anonymous]

You signed a contract. You need to fulfill your debt obligation.

[Anonymous]

Anonymous wrote:You signed a contract. You need to fulfill your debt obligation.

It sounds like the contract didn’t have any plans for extended closure.

[Anonymous]

I think you need to look at the policy regarding your obligations when it came to unenrolling in order to even get an idea as to what your legal obligations are. Were you required to give a 30 day or two week notice? Did you do those things? Are there policies about paying even if you don't attend? Was the daycare completely shut down? Also, read those portions of your contract that relate to collection of outstanding balances - there could be upcharges of interest, court costs, attorney's fees, etc., which can multiply any balance owed.

It's hard to say when these actions are going to reach any kind of resolution given the status of the courts. But, I can assure you that once an issue reaches a debt collector, the original debtor has probably washed its hands of the debt and the debt collector is likely to be like a dog with a bone. This could follow you for years if the original debtor sold off the debt. That being said, once you figure out if you owe anything and how much that is, you can probably make a deal.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You signed a contract. You need to fulfill your debt obligation.

It sounds like the contract didn’t have any plans for extended closure.

Then you owe. If it does not say you’re off the hook if they close, you owe.

[Anonymous]

Anonymous wrote:You signed a contract. You need to fulfill your debt obligation.

What? No sucker, contracts are no longer valid once one party (the daycare) stops fulfilling their end of the contract.

[Anonymous]

Anonymous wrote:Contact their licensing board.

Licensing does not get involved with business contracts.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You signed a contract. You need to fulfill your debt obligation.

It sounds like the contract didn’t have any plans for extended closure.

Then you owe. If it does not say you’re off the hook if they close, you owe.

Looks like the daycare owner found this thread.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You signed a contract. You need to fulfill your debt obligation.

It sounds like the contract didn’t have any plans for extended closure.

Then you owe. If it does not say you’re off the hook if they close, you owe.

That's not how it works. Unless there is something in the contract providing otherwise, you pay for services provided. If no performance of the contract (center closed) you are not obligated.