Legal Question in Credit and Debt Law in California
Retail Transactions
I work for a small to mid-size mail order business. We have recently discovered that due to mistakes in our accounting software and database, multiple orders were never charged for. Some of these date back as far as 2006. What rights do we have as a retailer to contact and charge these customers for product they received but never paid for?
1 Answer from Attorneys
Re: Retail Transactions
The California statute of limitations is two years for an oral contract and four years for a written contract. You can bill your customers from now until doomsday, but any court lawsuit has to be filed on or prior to the expiry of the statute of limitations. Your possible use of credit card or ACH information to charge the customers could be further time-limited under federal laws or regulations. More to the point, you have to consider the effect of your proposed delayed billings on customer goodwill.
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