The topic of unpaid debt in the child care sector is enough to provoke the most even tempered provider into a state of frustration and anger. Here at CareforKids.com.au we often hear from providers frustrated by the system which makes it possible for parents to avoid paying fees, centre hop and still receive the CCB and CCR.
In Australia various companies and databases have been established to help child care providers identify parents who regularly skip paying fees and then change centres. These systems require child care providers to enter the names of serial offenders into a database which other providers can use to check up on parents before accepting an enrolment.
The problem with this system is that providers have to pay to access the information and it requires centres which are out of pocket to enter the details of the parents into the database, which may not help them reclaim their money.
It would seem the best way to deal with the problem of debt is to avoid it. An increasing number of centres are operating on a cash/cheque free basis and operate on a direct debit system where the money is taken straight from the bank account of parents. Introducing this as a centre wide policy with a dishonor fee if a transaction fails would make it much harder for parents to avoid paying fees.
Most early child care service providers will seek to avoid the emotionally challenging step of excluding a child from care in the event of non-payment, however when non-payment starts to effect the viability of the business or reach unmanageable levels then providers need to take action.
The following information will hopefully help you develop a debt avoidance action plan for your service:
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