Credit Control - Urgent Query

Elvie

Advise required regarding an old customer whose account was in credit when they stopped purchasing goods from my company. After 6 months the amount left on his account was transferred out to offset against Bad Debts.
2 years later he has contacted us and is asking for the money back. Any ideas on the legal standing?

Thanks for any comments, help.

Elvie

K H

Bad Debts

They would certainly be due their money back as i believe they have six years to make a claim for it.


best wishes

Baggybooks

I'm not sure why it would have been used to off-set a bad debt. A bad debt should be dealt with as a bad debt and not just netted off against a cr balance.

Monsoon

Pay the money back. Absolutely no question.
Writing it off to bad debts was wrong.

Elvie

Thanks all for your comments.

Not to worry, the writing off against Bad Debt issue was corrected back in 2006, as was the Bad Debt GL - since then all debtors receive regular statements of their account balance. Sorry for not making it clear but my original message was a bit wordy and I obviously edited it down a little too much. :blushing:

The point requiring clarification was the total length of time the money - which should have been on the Debtor account - had to be kept for the Debtor to claim it back.

I apologise again for my badly worded query (as my mother use to tell me "I've only embarrassed myself").

Elvie