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Collections Law/No payment for child care

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Question
I provide child care out of my home and took on a client 4 months ago. This client was under state child care assistance and knew I was not licensed and by the first month knew it would take me a long time to get licensed. I gave her a considerable discount since I knew she couldn't afford it, she choose to stay with me and pay the discounted price. He child had behavior issues that are beyond my level of experience or patience and I gave her a 2 week notice (as per my contract that she signed) to find new care. During the time of care I had a lapse in ethical judgment and violated confidentiality (without naming but pretty descriptive). I accept responsibility for that, but she is now using it against me so she wont have to pay for her last month. I want to take her to small claims but with the indiscretion would it be worth it? Can it be used against me in this case? She owes me $400 as per our verbal agreement, $645 as per the signed contract.

Answer
I do not feel it would be worth it under the circumstances to take her to court because she could counter sue for the breach.  Perhaps she would pay a reduced amount to prevent a law suit.

On the other hand you have a written and signed contract and are well within your rights to be paid and if it takes a law suit to collect, so be it.

I do not know of any legal issues and to get further advice you may want to contact an attorney, thus not making it worth the trouble.

I hope you have found this helpful.

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Ray A Miller

Expertise

I am qualified to answer questions on the following subjects: FDCPA, FCRA and HIPAA as well as medical collections, general collections and collection agency related issues. I trained these subjects at a nationwide collection agency and customer service call center and audited around 150 representatives for compliance to the laws. I have been in the Collections Industry for over 30 years. I feel that everyone deserves to be treated fairly and with compassion and that is the way I trained collectors. Even though I worked for a Collection Agency, I get great satisfaction in helping those who have been mistreated or in need of help with these confusing issues.

Experience

I was the Compliance Administrator with a nationwide collection agency and customer service call center-I have trained hundreds of collectors on the above referenced topics. I have been in the medical collections industry for over twenty years and research these topics on a daily basis.

Organizations
ACA International

Education/Credentials
Some college ACA Certified Collection Specialist

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