Legal Question in Business Law in California

Re: Automated Business

You should first contact your bank and instruct them to cease allowing this company to take money directly out of your account. You may want to even close the account in case the bank doesn't stop the withdrawals. Your next step should be is to send copies of the letters you faxed along with the bills they have sent you back to the address on the bill. You may even want to send the letters certified return receipt so you have confirmation that they received your letters. In a cover letter you should state the situation and the actions you have taken to remedy them. Tell them if they do not cease and desist double billing you you will be forced to seek legal action. Most companies listen when you threaten legal action. If they still don't respond and it is sent to a collection agency you should write a letter to the agency stating the same thing and ask them for the name and phone number of their contact person so you know who to call. If all else fails, you may want to file a lawsuit in small claims for breach of contract. Once they receive a lawsuit, they will be forced to make contact with you or the Court. This seems like a lot for a simple billing error, but they probably do this all the time hoping their customers will just pay the bill no knowing that they already took the money out of their account. This is one danger of direct withdrawal since you have no control over how and when they get paid and you have to go through a lot of trouble if they have to double bill you. I always recommend that you request that they send you a bill and you pay by check so you always know what you are paying and what the money is for.

I hope this helps.

Sincerely,

John Hayes, Esq.