Bill (payment)
Encyclopedia
A bill or invoice is a document requesting payment for an order previously supplied. Presentation of a bill is common practice on the part of credit card
companies, utilities
, and other service providers. The bill for something is the total price of all services and goods received but not paid for, and is presented in the expectation of immediate payment by the due date.
In countries where wire transfer
is the preferred method of settling debts the printed bill will contain the bank account number of the debtor and usually a reference code identifying the payer.
When a bill is paid for, as a part of the transaction, the company will usually provide a bill confirmation.
s being added to the bill, negative credit reporting, suspension of the services being provided, employment of a collection agency
to collect the amount due, or in the most extreme cases, legal action
. The total amount of the bill is usually called the balance due.
Under English law
, a person who makes off without paying the bill, or who dishonestly
secures a remission in the amount payable, commits a criminal offence under the Theft Act 1978
.
In the United States
, a person who does not pay a bill cannot be held criminally liable. Debt is strictly a civil matter, and the creditor is limited to taking civil action against the debtor.
Common reasons for failure to pay a bill on time or at all include disorganization, forgetfulness, health problems that leave the customer out of commission to make payment, dispute of the charges on the bill, or difficulty in affording the bill.
Credit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...
companies, utilities
Public utility
A public utility is an organization that maintains the infrastructure for a public service . Public utilities are subject to forms of public control and regulation ranging from local community-based groups to state-wide government monopolies...
, and other service providers. The bill for something is the total price of all services and goods received but not paid for, and is presented in the expectation of immediate payment by the due date.
In countries where wire transfer
Wire transfer
Wire transfer or credit transfer is a method of electronic funds transfer from one person or institution to another. A wire transfer can be made from one bank account to another bank account or through a transfer of cash at a cash office...
is the preferred method of settling debts the printed bill will contain the bank account number of the debtor and usually a reference code identifying the payer.
When a bill is paid for, as a part of the transaction, the company will usually provide a bill confirmation.
Unpaid bills
If a bill is not paid on time, various sanctions against the debtor may be taken, including late feeLate fee
A late fee, also known as a late fine or a past due fee, is a charge levied against a client by a company or organization for not paying a bill or returning a rented or borrowed item by its due date. Its use is most commonly associated with businesses like creditors, video rental outlets and...
s being added to the bill, negative credit reporting, suspension of the services being provided, employment of a collection agency
Collection agency
A collection agency is a business that pursues payments of debts owed by individuals or businesses. Most collection agencies operate as agents of creditors and collect debts for a fee or percentage of the total amount owed....
to collect the amount due, or in the most extreme cases, legal action
Lawsuit
A lawsuit or "suit in law" is a civil action brought in a court of law in which a plaintiff, a party who claims to have incurred loss as a result of a defendant's actions, demands a legal or equitable remedy. The defendant is required to respond to the plaintiff's complaint...
. The total amount of the bill is usually called the balance due.
Under English law
English law
English law is the legal system of England and Wales, and is the basis of common law legal systems used in most Commonwealth countries and the United States except Louisiana...
, a person who makes off without paying the bill, or who dishonestly
Dishonesty
Dishonesty is a word which, in common usage, may be defined as the act or to act without honesty. It is used to describe a lack of probity, cheating, lying or being deliberately deceptive or a lack in integrity, knavishness, perfidiosity, corruption or treacherousness...
secures a remission in the amount payable, commits a criminal offence under the Theft Act 1978
Theft Act 1978
The Theft Act 1978 is an Act of the Parliament of the United Kingdom. It supplemented the earlier deception offences contained in sections 15 and 16 of the Theft Act 1968 by reforming some aspects of those offences and adding new provisions...
.
In the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, a person who does not pay a bill cannot be held criminally liable. Debt is strictly a civil matter, and the creditor is limited to taking civil action against the debtor.
Common reasons for failure to pay a bill on time or at all include disorganization, forgetfulness, health problems that leave the customer out of commission to make payment, dispute of the charges on the bill, or difficulty in affording the bill.
See also
- InvoiceInvoiceAn invoice or bill is a commercial document issued by a seller to the buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer. An invoice indicates the buyer must pay the seller, according to the payment terms...
- ReceiptReceiptA receipt is a written acknowledgment that a specified article or sum of money has been received as an exchange for goods or services. The receipt is evidence of purchase of the property or service obtained in the exchange.-Printed:...
- ArrearsArrearsArrears is a legal term for the part of a debt that is overdue after missing one or more required payments. The amount of the arrears is the amount accrued from the date on which the first missed payment was due...
- Grace periodGrace periodA grace period is a time past the deadline for an obligation during which a late penalty that would have been imposed is waived. Grace periods, which can range from a number of minutes to a number of days or longer, depending on the context, can apply in various situations, including arrival at a...
- Late feeLate feeA late fee, also known as a late fine or a past due fee, is a charge levied against a client by a company or organization for not paying a bill or returning a rented or borrowed item by its due date. Its use is most commonly associated with businesses like creditors, video rental outlets and...
- Turn-off noticeTurn-off noticeA turn-off notice, cut-off notice, or shut-off notice is a warning letter sent out by the provider of a service for a residence or other building, such as utility, phone service, or cable television, that if payment is not sent by the date indicated in the notice, the service will be interrupted...
- Debt evasionDebt evasionDebt evasion is the intentional act of trying to avoid attempts by creditors to collect or pursue one's debt. At an elementary level, this includes the refusal to answer one's phone by screening one's calls or by ignoring mailed notices informing the debtor of the debt...