HOW LONG CAN A COMPANY LEGALLY KEEP MY MONEY FOR A BILLING ERROR?

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HOW LONG CAN A COMPANY LEGALLY KEEP MY MONEY FOR A BILLING ERROR?

I WAS OVERCHARGED $1200. THE CHARGES KEPT COMING ONE AFTER THE OTHER UNTIL MY BANK WAS OVERDRAWN AND REFUSED MORE CHARGES. THEY KEEP SAYING THEY WILL FIX IT SOON BUT THEY HAVE KEPT THE MY MONEY 10 DAYS ALREADY. HOW LONG CAN THIS GO ON BEFORE THEY ARE BREAKING THE LAW?

Asked on July 19, 2011 California

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

The laws of each State in this country vary on when a refund needs to be returned due to a billing error. In most cases, it is a reasonable time. What is a reasonable time depends upon the facts of each situation.

I would write the company keeping your money a letter adving it that you expect payment in a set time with accrued interest at the legal rate and if not paid, you will take legal action. Keep a copy of the letter sent for future reference.

If payment is not made within the stated time period, perhaps a small claims action could be filed by you if you desire if the State where you live (California does) would be the appropriate course of action.

Good luck.


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