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Customer issue

B

benliong

Golden Member
We delivered some product that a particular customer ordered in October last year, but the credit card didn't go through. Because of limited man-power, we didn't catch that in time.

We hired an accountant, and found out that the credit card was not processed at all and that we should weren't paid for that part. We called up the customer and told him the situation. He admit that he had received the product, but he refused to pay for it on the sole reason that it's been so long (Almost a year), and the payment should have been settled there and then.

I do agree with him partially, but I'm just wondering if there's any way we can argue to have him pay for what he owed? Is there a law protecting him as a customer not to be charged for the product a year later?

Any inputs are welcome

Thanks

Sincerely,
Ben Liong
 
I don't know how much the part cost....but I would probably be pretty pissed if some company took a year to figure out what happened, although it probably was his fault that the card didn't go through. On that note, I would give him a choice between paying for half of it or going to court.

Dan

Edit: Assuming it was $500+ or something...
 
I'd have to eat the loss if I were you. If you caught it after a month it'd be one thing, but a year is giving them a freebie.
 
Originally posted by: richardycc
how much was it? if it is small amount, I would just write it off.
Click to expand...

The part was $290, and it was some electronics for cars (Boost controller).

The reason I ask is that I might have to pull that out of my own pocket for that mistake I made (back when the company operation was ran only by myself, and no I am not the owner).

Edit: I really do admit that it's my mistake, but legally speaking, would we have ground to go after him for the debt? (not that I'm going to force it, it's just going to generate bad publicity for the company).
 
Fire your accountant for not finding this earlier. Think of it this way, if this was your money you would have missed it long before a year I can assure you.
 
Consider it the cost of doing buisness if you can't get the money.... remember, if you piss that customer off... they'll never order from you again...

my company on the otherhand has successfully convinced people to resupply credit card numbers YEARS after they expired in this exact same situation... so.... while remembering that your company's image is its most precious comodity, tread carefully
 
you could have just charged the card without calling him i think. i live in canada but i made a purchase with my visa and it didn't show up on my bill until like 8 months later. i called and was liek "wtf is this charge, i never bought anything there" and they explained to me that i made the purchase 8 months ago and it was just being processed now.
 
oh, and under no circumstances should you have to shell out to cover this mistake... mistakes are a "cost of buisness"

this is why there is a credit account for anticipated % uncollected recievables.... <<< from my limmited accounting experience
 
All you have to do is run the card. It's still legal. He agreed to pay for it. I'd call the company that you use to process your credit cards and see what they say,. They are the ones that will know how that works.
 
Originally posted by: benliong
Originally posted by: richardycc
how much was it? if it is small amount, I would just write it off.
Click to expand...

The part was $290, and it was some electronics for cars (Boost controller).

The reason I ask is that I might have to pull that out of my own pocket for that mistake I made (back when the company operation was ran only by myself, and no I am not the owner).

Edit: I really do admit that it's my mistake, but legally speaking, would we have ground to go after him for the debt? (not that I'm going to force it, it's just going to generate bad publicity for the company).
Click to expand...

Although I'm not sure if I fully understand the situation, but usually the owner eats it.
 
Originally posted by: Phoenix86
Originally posted by: richardycc
how much was it? if it is small amount, I would just write it off.
Click to expand...

Write it off what? You don't even know what a write off is, do you? 😉
Click to expand...

But they do, and they're the one's writing it off. 🙂
 
I'd certainly try to recover the money. There's simply no reason that a billing error can't be corrected at a later date -- but the max would be right at about a year.
 
Originally posted by: Demon-Xanth

Although I'm not sure if I fully understand the situation, but usually the owner eats it.
Click to expand...

I was the only guy operating the business, I'm supposed to charge it, and I didn't. So I don't know ... good bye $290 🙁

 
Originally posted by: FrankyJunior
All you have to do is run the card. It's still legal. He agreed to pay for it. I'd call the company that you use to process your credit cards and see what they say,. They are the ones that will know how that works.
Click to expand...

If I could, I would. I can't because of the following reasons:

(1) First of all, credit card charges can be disputed, and Credit Card companies are known to be on the side of the customer.

(2) His card doesn't work. He changed his card during the year. And he's refusing to provide new billing information.

 
Originally posted by: benliong
Originally posted by: FrankyJunior
All you have to do is run the card. It's still legal. He agreed to pay for it. I'd call the company that you use to process your credit cards and see what they say,. They are the ones that will know how that works.
Click to expand...

If I could, I would. I can't because of the following reasons:

(1) First of all, credit card charges can be disputed, and Credit Card companies are known to be on the side of the customer.

(2) His card doesn't work. He changed his card during the year. And he's refusing to provide new billing information.
Click to expand...
send a bill to him with a threat that it will be send to collection agency if he don't pay

 
you just reminded me the jacket I ordered last year from JCPenny. but it was different. they charged the amount of money and credit it back. 😀

well, for you, I would say no way in hell that you can recover the money from him. eat the loss.
 
Originally posted by: benliong
ok telling the boss that I'm going to pay for it personally. This sucks. 🙁
Click to expand...

why?

its a cost of doing buisness.... you're retarded

mistakes like this are allowed to happen.... I help mop up in my company's accounting department when my severs are behaving themselves and I have at least a dozen cases of this on my desk right now... all of which we can blame on one person... sh!t happens, dont beat yourself up

heck, just dropping it would save your company money if you just did something else with your wage time instead! really, this is why it's called a bottom line!
 
Originally posted by: benliong
ok telling the boss that I'm going to pay for it personally. This sucks. 🙁
Click to expand...

Why not make an effort to get the money back? Take the advice people have given you in this thread. The guy is an ass, he thought he got it free due to a billing error and now he doesn't want to pay up. Being a year late doesn't matter, he got to use YOUR $290 for a year.
 
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