KCE Champions, a before and after school child care program in D.C., will have to change its business practices —or face a $250,000 bill.
An investigation into the program found that the company deceived parents about late fees, auto-disenrolled children from its programs, and engaged in unfair debt-collection practices — often calling parents excessively at work to try to collect past-due payments.
“When choosing before or after care for your child, trust in that program is of utmost importance,” D.C. Attorney General Karl Racine said.
KCE Champions, which operates 21 schools districtwide, agreed to make adjustments to its policies, as mandated by the terms of the settlement.
The changes, Racine said in a statement, will make the company’s fee structure more transparent, so parents can know just what they’re paying for.
New policies will limit the number of times KCE Champions can make debt-collection calls. The company will also be required to notify the parents of children who face disenrollment and extend the grace period for late payments to one month.
The company also agreed to pay the District $250,000 to cover the cost of the investigation.
However, if KCE Champions abides by the terms of the agreement and pays the District $40,000 over the next five months, the rest of the debt will be forgiven.
