Wow, Cindy this is an interesting one.
I’m probably stating the obvious here so forgive me …. I’d check first to see if there has been a S.603 issued during the period that this has been going on. If so, I reckon you’re hands are tied re refunding.
Great that you were able to set up another account. If there hasn’t been a s.603, I’d issue notices for the new account (to the parents for the period this has been going on) showing them that the money is owed, before getting them to pay. I’d even a issue a declaration of category letter for the new account – if that is your practice – to ensure you’re covered.
I’d use the BPAY reversal process through the bank to refund the money on the old account but only after the parents’ money is cleared on the new account. The BPAY reversal process will ensure that the money goes back to the account of the payee – just in case there is something even shonkier going on in this case.
Your debt recovery agent might have a different insight on this altogether Cindy, especially if the child has commenced some kind of legal action.
Cherie
