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Threatening a debtor with court action to retrieve funds
Hi, we recently had our daycare take over $3000 deposit to hold a spot for our 1 year old. After 2 weeks she lost her spot and they closed half the daycare down. All this happened in the first half of the year, we’ve since been strung along with excuse after excuse and finally had to draw the line. I’ve drafted up a letter with all the details of what happened and provided a last opportunity to resolve the matter amicably. Would some one mind reviewing my draft which I will post via registered mail for anything I may have missed. Thanks in advance.
My address is aligned right
Debtors address is aligned leftI am writing to formally request the return of the bond we submitted for our child, [Name], upon their enrolment at your daycare. Our child attended your facility five days a week from January 2023 to March 2023.
As per the terms outlined in the “[Daycare] – Offer Of Care, [Name]” email dated May 11, 2022, we were required to provide a bond of $3200 direct to your account, with an additional $50 designated as an administrative fee to be paid to [Name] Child Care. The conditions set out in the AF Welcome Pack handbook, Page 2, under the “Fee Schedule & Accounts” clearly states that this bond is refundable when our child finishes their time at your daycare.
Our child concluded their enrolment at your daycare March 2023, and we request the return of the bond in accordance with the conditions set forth in the “AF Welcome Pack handbook”. We made the bond payment on May 30, 2022, to the account of [account details], as instructed.
I expect a resolution to this matter by Friday, 17 November. If the issue remains unresolved, I will escalate the matter to NSW Civil/Small Claim Court for their intervention. All associated court fees will be payable by your organisation. Furthermore, I would like to emphasise that a situation like this can potentially result in significant repetitional damage.
I am open to further discussion and request that you contact me at the above address via email or written correspondence, details of which are provided below my signature. I believe that we can resolve this issue amicably and avoid any further legal actions.
Signature includes, “ALL RIGHTS RESERVED”
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6 Replies
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Maybe mention in the letter all that has transpired, otherwise to a court it may seem you just didn’t bother to take action until now. Also what do you mean by ‘repetitional damage’ (perhaps describe what you mean in layman’s terms in your letter rather than using that phrase)?
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reputational damage.
it is worth doing a 3 letter process to cut down on time wasted. Time is ticking and if you do not get your self into a position of a secured party creditor you will miss out.
Keep a record of each letter. Ask 2 friends (of good standing) to witness the letter.
Put the word Notice in bold at the centre top of the text. Before “Dear So and So”
You would write a letter outlining the claim you have and why, which is this letter you have posted above.
Perhaps include that all responses to be in writing. If they call and try and argue or brush you off further .. tell them all responses in writing.
Send by registered mail with delivery confirmation. Get a tracking number.
When they do not respond, Send a second letter, you appear to have failed to answer my previous letter. Notice of Non Response. Give them an opportunity to respond and resolve the matter.. by giving you your refund. Include copies of previous letter and supporting Docs.
Have it witnessed by 2 good people. Send by registered mail with delivery confirmation. Get a tracking number.
When they fail a second time… send 3rd Letter Notice of Default. You have failed to remedy the situation or you have failed to respond. Give some days.. 14 or 28 you decide. Include copies of previous letter and supporting Docs.
Get it witnessed by 2 good people.
Send by registered mail with delivery confirmation. Get a tracking number.
Then take copies of all your letters and your delivery confirmations to the Magistrates court and fill out an Application for Default Judgement. Pay the fee and get the Magistrate/Judge to give you a default judgement. You shouldn’t need to go into court but the Magistrate/Judge might call a hearing.. up to them.
Take that Judgement to the Sheriff and get them to collect on the Judgement. They will charge but you add that to the claim as costs.
Also…..
When you make copies of documents, take the original and the copy to the post office and get the Manager to certify your copies. They will compare them, stamp the copy and sign it and charge you $2.50 per page. You can give the certified copy to the Magistrate/Judge with your App for Default Judgement.
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Just another note…. failure to reply is when they don’t reply at all OR they send you something but do not respond to all your claims/points or ignore your points or claims. This is Non Response and you would simply state they failed to reply or respond.
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This is amazing. Thank you so much for your responses. These are great points that we will action.
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Why don’t you do a Statutory demand for payment of Debt. That would surely get their attention. They clearly owe this money to you and have presented you with excuses as to why they haven’t paid, thats proof of the debt. They legally have to act on it.
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I forgot to mention. Go to the website for the court in your state that will handle the Default judgement. it will be Magistrates Court or County Court given the amount involved.
Download their default judgement paperwork. Read that and make sure you cover any other requirements they have listed as well. Best to make sure you have everything covered than discover something that has been missed when you go to file your D.J. application.
Their paperwork will probably include a Stat Dec requirement as per Bricky’s post.