What to do if a company is charging me for services tthat hey never provided?

I was planning on getting married at a event center. I gave them my deposit and signed a contract. A few weeks later I called and cancelled the event in which they told me I would lose my deposit. Now years later I pulled my credit report and the event center is charging for a full event that never happened. They claim I didn’t cancel and have put a collection of $6600 on my credit report. I cancelled almost a year before the event and the company never contacted me after I cancelled. Can they charge me full price for a event that never occurred?

Asked on July 19, 2012 under Bankruptcy Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

There are three different issues here:

1) Legally, whether they can charge you the full amount, assuming you did cancel properly, depends on what the agreement or contract said--if it allowed them to charge you the full amount if you canceled when and the way you did, and you signed that agreement, they can charge you this money.

2) Whether your cancellation was effective depends on how you provided it and what the agreement said--if, for example, it required written notice but you only provided oral or verbal notice (e.g. a phone call), it would not have been effective.

3) Related to the issue above; even if you in fact cancelled properly, if you did so in a way which did not provide any evidence (e.g. a phone call), it may be very difficult to prove you did cancel in accordance with the terms of the contract if they insist and testify that you did not.

Given how much is at stake, you should consult with an attorney about your matter. Bring with you all correspondence, notes, and agreements.


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