Legal Disclaimer: This article provides general information for educational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change frequently. For advice specific to your situation, consult a licensed attorney in your area.
Childcare is one of the most important services you'll ever purchase, and problems can affect your child's wellbeing and your finances. Whether you're dealing with deposit disputes, unexpected closures, or care quality concerns, understanding your rights helps you advocate effectively. The U.S. Department of Health and Human Services childcare.gov provides resources for finding quality care and understanding licensing requirements in your state.
Safety First: If you suspect abuse, neglect, or unsafe conditions, report immediately to your state's childcare licensing agency. Safety concerns take priority over any contract dispute.
Common Childcare Disputes
Financial Issues
- Registration fees and deposits not refunded
- Charged for days facility was closed
- Rate increases without notice
- Hidden fees not in contract
- Billing for services not provided
- Cancellation fee disputes
Service Problems
- Facility closed unexpectedly
- Inadequate supervision or staffing
- Care not as described/promised
- Schedule changes without notice
- Promised programs not provided
Contract Disputes
- Unfair termination terms
- Excessive notice requirements
- Automatic renewal without consent
- One-sided modification rights
Deposit and Fee Disputes
Common Deposit Issues
- Registration fees deemed non-refundable
- Last month's tuition held hostage
- Excessive administrative fees
- Deposits not returned as promised
Your Rights
- Review contract for specific terms
- Non-refundable must be clearly stated
- Unreasonable terms may be unenforceable
- State laws may limit certain fees
Getting Deposits Back
- Review contract refund terms
- Request in writing with deadline
- Document all services not provided
- Send demand letter if refused
- Small claims court if necessary
Read Before Signing: Childcare contracts often have strict cancellation policies. Understand the notice period and fees before committing.
Unexpected Closures
Permanent Closure
- Entitled to refund for prepaid unused services
- Deposits typically should be refunded
- May have claims for emergency care costs
- Check if bonded or insured
Temporary Closures
- Weather/emergency closures - check policy
- Extended closures may warrant credit
- Renovation/maintenance without notice
- Staff shortages affecting service
If Provider Goes Out of Business
- Document prepaid amounts
- File credit card dispute immediately
- Check for bankruptcy proceedings
- Report to state licensing
- Contact state AG consumer protection
Quality of Care Issues
When Care Falls Short
- Teacher-child ratios not maintained
- Promised curriculum not delivered
- Facility cleanliness issues
- Communication problems
- Special needs accommodations ignored
Addressing Concerns
- Document specific issues
- Discuss with director/owner
- Put concerns in writing
- Request specific improvements
- Follow up on commitments
When to Report
- Safety violations
- Licensing violations
- Suspected abuse or neglect
- Consistent staffing violations
- Sanitation issues
Licensing Complaints: Each state has a childcare licensing agency. They investigate complaints and can take action against facilities that violate regulations.
Nanny and In-Home Care Disputes
Common Issues
- Services not as agreed
- Schedule violations
- Quality of care concerns
- Wage and hour disputes
- Termination conflicts
Legal Requirements
- Nannies are employees, not contractors
- Must comply with employment laws
- Tax withholding required
- May need workers' comp insurance
Nanny Agency Disputes
- Fees for placement not as described
- Nanny leaves shortly after placement
- Guarantee period claims
- Background check failures
Contract Review
Key Terms to Check
- Cancellation notice period
- Refund policy
- Holiday/closure policies
- Rate increase provisions
- Late payment fees
- Termination conditions
Red Flags
- Extremely long notice periods
- No refunds under any circumstances
- One-sided modification rights
- Waiver of all liability
- Automatic annual increases
Unenforceable Terms
- Terms that violate state law
- Unconscionable provisions
- Waivers of gross negligence
- Terms not clearly disclosed
Taking Action
Resolution Steps
- Review contract and policies
- Document your concerns
- Discuss with management
- Put requests in writing
- Formal demand letter
- Regulatory complaint if appropriate
- Small claims court
Complaint Options
- State licensing: Regulation violations
- State AG: Consumer protection issues
- BBB: Business complaints
- Local reviews: Warn other parents
Small Claims Considerations
- Deposit recovery
- Overpayment refunds
- Breach of contract
- Emergency care costs
Document Everything: Keep all contracts, emails, texts, and payment records. Take dated photos if relevant to facility conditions.
Prevention Tips
Before Enrolling
- Check state licensing status
- Review inspection reports
- Talk to current parents
- Visit unannounced if possible
- Read contract carefully
Document From Start
- Keep signed contract copy
- Save all payment receipts
- Note verbal promises
- Track service issues
- Maintain communication records
Resolve Your Childcare Dispute
Generate a demand letter for daycare deposits, fees, or service issues.
Create Your Letter