Legal Question in Criminal Law in California

Don't get your legal help from random strangers on the internet (unless they're licensed California attorneys). When caught stealing you should not talk, or admit or sign anything. Since you did, you'll be in the theft database forever and probably you've made yourself unemployable. You may yet be criminally charged, and you do owe the $400 loss prevention fee. This fee is to compensate the retailer for their loss prevention costs so their honest customers don't have to pay. If you don't pay, it will go on your credit report and you could be sued or, if you are criminally charged, you could be ordered to pay it as victim restitution.

I wholeheartedly disagree with the previous answer. This is not a "debt", so there is nothing to report to the credit bureaus. Can I just send a letter to anyone I want, demanding money and if they don't pay, I can ding their credit without first obtaining a judgment? Absolutely not.

The letter you're talking about is a civil demand letter. The California Penal Code allows a merchant to "demand" up to $500 in a theft situation. If you pay, it means they won't sue you in small claims court. If you ignore their letter (and the next two or three plus the phone calls), then they have to make a choice - let it go or sue in small claims. I have never heard of anyone actually being sued because they didn't pay the civil demand.

Paying doesn't guarantee no criminal prosecution and not paying doesn't mean that charges will be filed in criminal court. The two are completely separate.

In deciding whether or not to pay what is essentially a scam, think about what Neal Tenen puts in his website when advertising their services to merchants - "Our extensive legal experience means a litigation-free program." That means they don't sue.

As Mr. Dane correctly states, paying the demand does not guarantee that the store won't also file criminal charges. Many stores now vigorously prosecute for 'deterrent' effect, even after getting paid those civil damages. However, if you haven�t yet been contacted by police or arrested, an attorney MAY be able to negotiate an actual 'civil compromise agreement' with the store that will avoid you being prosecuted. If serious about hiring counsel to help in this, and if this is in SoCal courts, feel free to contact me.