UK private care agency asking for a retainer?

[Toodlepipfornow]

Hi all,

My dad is about to (on Monday) start a new care package with a private care agency and they have just asked for a week's retainer before they start work.

Is this the norm, can anyone tell me? No one I've spoken to so far, eg; health visitors, doctor's surgery, etc., has ever heard of this before.

The only reason I can think of that they would ask for one is to cover themselves if the client doesn't pay.

I'm sure there's nothing underhand about it but I don't like to think of my parents being taken advantage of.

Any advice would be appreciated.

Many thanks in advance.

 

[jenniferpa]

Will the care bill being paid in arrears?

 

[Toodlepipfornow]

Will the care bill being paid in arrears?

Hi Jennifer - no, it won't be paid in arrears.

 

[jenniferpa]

Then that's a bit odd. Is by chance the retainer the same general amount as the proposed cost for any notice period? E.g. the care costs £100 per weeks, the notice period is 2 weeks, the retainer is £200?

I do think (unfortunately) some people attempt to stiff care companies, particularly when there's an unplanned hospital/care home admission. Do this is the company's way of protecting itself. I would be asking what the terms are for the return of the retainer is. If it's non-refundable under any circumstances I might be having a bit of a think about if I would want them. Not that I necessarily think it's out of line, and I suspect this will become more and more the norm. But you need to know up front.

 

[Toodlepipfornow]

Then that's a bit odd. Is by chance the retainer the same general amount as the proposed cost for any notice period? E.g. the care costs £100 per weeks, the notice period is 2 weeks, the retainer is £200?

I do think (unfortunately) some people attempt to stiff care companies, particularly when there's an unplanned hospital/care home admission. Do this is the company's way of protecting itself. I would be asking what the terms are for the return of the retainer is. If it's non-refundable under any circumstances I might be having a bit of a think about if I would want them. Not that I necessarily think it's out of line, and I suspect this will become more and more the norm. But you need to know up front.

Thanks for the reply, Jennifer.

The deposit equates to payment for one week. The notice period is for two weeks.

The pertinent paragraphs are below. It's probably all above board - it just struck me as strange.

We reserve the right to charge a deposit (as detailed in the Fee Schedule) in respect of the Fees if We consider (in Our absolute discretion) it necessary. We shall hold the deposit securely for the duration of this Agreement between us and we undertake to repay this deposit to you on termination, subject always to the provision of clause 2.3 below.

You shall only be entitled to a refund of the deposit if this Agreement is terminated in accordance with these Terms and Conditions. We reserve the right to deduct from your deposit any sums that are owed to us in connection with this Agreement.

 

[Kevinl]

Based on the quote from the contract it seems fair to me, unusual in the care industry but the term of the contract seem fair.
I would think if you asked care companies they'd all have stories of people going in to hospital, care or passing away and the care company either never get the money or get it months later when the will gets sorted out and as Jen gets a bit gangster and says when people "stiff" them.
It's not a retainer it's a deposit which is refundable unless you break the terms and conditions of the contract a standard practice in many businesses.
K

 

[Toodlepipfornow]

Based on the quote from the contract it seems fair to me, unusual in the care industry but the term of the contract seem fair.
I would think if you asked care companies they'd all have stories of people going in to hospital, care or passing away and the care company either never get the money or get it months later when the will gets sorted out and as Jen gets a bit gangster and says when people "stiff" them.
It's not a retainer it's a deposit which is refundable unless you break the terms and conditions of the contract a standard practice in many businesses.
K

Thank you for pointing that out, Kevinl!
I actually meant deposit, I don't know why I said retainer - all references are to a 'deposit' being paid so I don't know what that came from. (Sorry, it's been a long day. )
Yes, I'm sure that what you and Jennifer have said is absolutely right. The more I think about it, the more I think I panicked about being in new territory and over-reacted.
Thanks for the feedback.