Can a company request more funds after the entire bill is paid and the check states "paid in full"?

Question

A bill was sent with a total amount due, a check was returned to them with a note in the memo "paid in full", the check was for the entire amount, now they state that the billing was in error and are asking for more money, however they cashed the check with no dispute of the amount at the time of cashing. 30 days later they sent an additional bill for the same time period of service.

Answer 1

Most companies have clauses that says that even if you write "Paid In Full" and they cash it, they don't agree that it is paid in full. This is because in the past people would put that on a bill they paid a lot less on to try to get out of some debt. Since you are using the account you agree to these terms. You will probably find something to this effect in one of the pages of fine print.

However, you said you had a Bill that states the amount and you paid that full amount on time. If the bill they sent you was for the exact same time it does sound like they goofed up. As long as you are sure you paid them you just need to call them to get clarification and let them know.

Answer 2

By cashing the check with "paid in full" noted on the check, implies agreement bill has been paid in full. They are not entitled to additional funds, no matter what their reason.

Answer 3

Sounds like they screwed up...too bad for them.
Hopefully you still have a copy of the bill.
Did you put the invoice # or some other account identifier on the check that you put Paid in Full? They could counter that the check was for a different account or service.

Answer 4

Seems that they are on dodgy ground. Send them a COPY of your receipt and ask what the extra is for. I don't think that they will be able to press you for payment but you MUST seek legal advice.