Fee disputes are an unfortunate reality for many care homes, whether it’s a family contesting charges or failing to pay altogether. Managing these situations with care and professionalism is vital to protecting your business and maintaining trust. Here’s a step-by-step guide to handling fee disputes effectively.
Step 1: Review your agreement
When a dispute arises, the first thing to do is revisit the terms and conditions agreed upon by the resident or their family. Your contract should clearly outline payment expectations, due dates, and any penalties for late payments. Ensure your agreements are up to date and cover scenarios such as early departures or changes in care requirements.
Step 2: Communicate openly
Before escalating the matter, try resolving the issue through direct communication. Contact the family calmly and professionally, explaining the outstanding fees and referring to the agreed terms. Misunderstandings or financial difficulties are common causes of disputes, and an open conversation might resolve the matter quickly.
Step 3: Send a formal notice
If informal communication doesn’t work, the next step is to issue a written reminder. Include:
- A breakdown of the outstanding balance.
- A reference to the payment terms in the contract.
- A deadline for payment (e.g., 7-14 days).
- A warning of further action if the matter isn’t resolved.
Keep records of all correspondence, including emails, letters, and notes from meetings or phone calls.
Step 4: Escalate with a final demand
If payment still isn’t made, issue a formal demand letter. This should reiterate the terms of the contract, outline the outstanding fees, and give a final deadline for payment. Most families will settle the debt at this stage to avoid legal action.
Step 5: Consider mediation
Mediation can be a useful alternative to legal proceedings, offering a neutral platform to resolve disputes. A trained mediator can help both parties reach an agreement without the need for court involvement, saving time and money.
Step 6: Taking legal action
If all else fails, legal action may be necessary. For disputes under £10,000, the small claims court is often the best option. Before proceeding, seek legal advice to ensure your case is strong and that you’ve followed all proper procedures.
To make a claim, you’ll need to:
- Submit a claim through the government’s Money Claim Online service.
- Pay a fee, which depends on the amount claimed.
- Wait for the court to notify the family, giving them an opportunity to respond.
If the court rules in your favour, the family will be ordered to pay the debt, and you may recover some of your legal costs.
Step 7: Enforce the court’s decision
If payment is still not made after a court ruling, enforcement may be necessary. This could involve bailiffs recovering the debt, though this should always be a last resort.
Preventing future disputes
To minimise the risk of fee disputes:
- Ensure contracts are clear and comprehensive.
- Communicate payment policies upfront.
- Monitor payments regularly and address late payments early.
