It can be very difficult to recover debts when relationships with parents turn sour, therefore it is advised that necessary steps are put in place to help prevent this situation.Hopefully you will have developed a strong relationship with your parents and they pay you their child’s fees on time. A time may come when a parent fails to make a payment what then? do you have a debt procedure in place to follow during these situations. What happens if parents are with holding money as they are not happy with the service.
Debt management procedure
When it comes to trying to retrieve debts it is best to look what is written in your contract to parents, does it state clearly how and when payments should be made. It is your responsibility to manage your fee collection procedures and ensure payments are made on time, parents should not be allowed to build up a sufficient amount of debt.
If parents are continuously failing to make payments then you are also failing to adhere to our own policies and procedures. Your debt procedure should be clearly defined as to the steps that should be taken if parents fail to make a payment.
You may be able to get advice from your insurance company, they will not cover the debt themselves but they may be able to assist you in pursuing the debt.
Contacting your insurance
Contact your insurance company they will provide you with the legal expenses contact details, the purpose of these people are to provide legal first aid. The helpline will try and help you retrieve the money yourself, however if this is unsuccessful they will set up a claim and instruct a solicitor to take a claim forward. A lawyer will the carry out the necessary steps in trying to retrieve the debt.
If you suspect you have a bad debt situation check your policy and contact the helpline for more advice, however ensure you have the necessary steps in place first that demonstrate your debt management procedure.