Refundable deposits

[daughterofpat]

Mum has very recently moved to a nursing home - the next stage in her journey. She is privately paying all her fees, but although I think she should now receive CHC, I am waiting for the nursing home to deal with the necessary paperwork.
However they are asking me for a 4 week refundable deposit in addition to the 4-week fees in advance, and yet, they are unable to properly explain to me why they need this money. No notice was given about this before mum moved, so without rearranging finances, we cannot yet pay.
Is this a normal thing to pay for?

 

[love.dad.but..]

I looked at some homes who charged a refundable deposit and some who charged a non refundable deposit so it varies. The NH dad was resident in charged a month in advance but no deposit however they did charge 14 days post death. The CMA have produced a consultation paper regarding hidden fees among other things and one of the points they have looked at is that all these charges should be clearly explained and clearly seen in the contract which should be given to the resident/family before they move in...that didn't happen for me and it could be thought that it is purposefully done that way!

 

[daughterofpat]

I looked at some homes who charged a refundable deposit and some who charged a non refundable deposit so it varies. The NH dad was resident in charged a month in advance but no deposit however they did charge 14 days post death. The CMA have produced a consultation paper regarding hidden fees among other things and one of the points they have looked at is that all these charges should be clearly explained and clearly seen in the contract which should be given to the resident/family before they move in...that didn't happen for me and it could be thought that it is purposefully done that way!

Thank you love.dad.but. I think that was the thing that irritated me - no mention of this when we were looking round, or at mum's assessment, or when we discussed fees, or even on the moving date. Seemed a covert way of requesting more money, as it was not until she was in the NH that the contracts appeared and the request for a deposit was made! And it seems it's non-negotiable, although they still cannot properly explain why they need it. Interesting that the consultation paper you refer to says this should not happen, but it seems it's commonplace! x

 

[Kevinl]

They are in the wrong for not telling you about this beforehand but as they're unlikely to budge on it then it may not be a good idea to fall out about it, it's early days with the home so it might be better to say something then let it go as you're unlikely to actually get them to change their companies policy.
Most if not all landlords ask for a deposit and your contract with the home will have a notice period, if you pay the fees on the first of every month and pass away on the last day of the month then the home would have to claim the cost of the notice period from your estate, this could take a long time before it actually come through so it's simpler to ask for a deposit equal to the notice period, that way if pay on the 1st of the month and pass away at the end of the month they can take the notice period and return the balance to your estate, much simpler for them.
As said the CMA are looking into care home fees and notice periods, I believe something like 1 or 2 weeks is being suggested. As you're being asked for 4 weeks is that the notice period? If not then there is no reason why they should be asking for more than the notice period.
K

 

[daughterofpat]

They are in the wrong for not telling you about this beforehand but as they're unlikely to budge on it then it may not be a good idea to fall out about it, it's early days with the home so it might be better to say something then let it go as you're unlikely to actually get them to change their companies policy.
Most if not all landlords ask for a deposit and your contract with the home will have a notice period, if you pay the fees on the first of every month and pass away on the last day of the month then the home would have to claim the cost of the notice period from your estate, this could take a long time before it actually come through so it's simpler to ask for a deposit equal to the notice period, that way if pay on the 1st of the month and pass away at the end of the month they can take the notice period and return the balance to your estate, much simpler for them.
As said the CMA are looking into care home fees and notice periods, I believe something like 1 or 2 weeks is being suggested. As you're being asked for 4 weeks is that the notice period? If not then there is no reason why they should be asking for more than the notice period.
K

Thanks - you're right, the four weeks is the notice period, so it would be a case that it's easier this way. I was keen to challenge/query as nothing had been said before the move, and we were not asked to do similar when mum was in a residential home (where she would have been mobile enough to do a runner!) Have not caused too much of a fuss - in the scale of things it is really not important, but it is just yet more sad evidence that these homes can ask what they want when they want from the privately funded residents, and there is not a lot we can do about it. Thanks anyway x

 

[Kevinl]

Wait until the CMA report comes out in June and see what it says. See if they recommend homes have a notice period of only 7 days or if they instruct homes they must have a 7 day notice period.
If it's only a recommendation of a 7 day notice period then homes may decide not do it so I hope they are forced to follow a rule not just decide for themselves whether or not they follow a guideline. Hopefully 28 days notice will become a thing of the past.
K