What happens when a company forgets to bill?
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What happens when a company forgets to bill?
Is it allowed to bill me later if it remembers that they forgot to charge me or am I subject to not pay?
Asked on November 25, 2013 under Business Law, Texas
Answers:
S.L,. Member, California Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
In Texas, there is a four year statute of limitations for collection of a debt from a credit card, spoken contract, written contract or mortgage contract. There is a six year statute of limitations for collection of a debt on a promissory note.
If the company forgot to bill you, it has four years to collect on the above types of debt or six years if the debt is a promissory note. If the company does not file a lawsuit to collect the debt before the applicable statute of limitations expires, it is too late for the company to collect on the debt. If the company remembers to bill you, it can still do so unless the statute of limitations has expired for collection of the debt.
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