What to Do If You Receive a Civil Demand Letter for Shoplifting in New Jersey
Receiving a civil demand letter for shoplifting in New Jersey means the retailer is requesting up to $150 plus damages under N.J.S.A. § 2A:61C-1. Paying this demand does not drop your criminal charges, and ignoring it rarely results in an actual civil lawsuit.
Decoding Civil Demand Letters in New Jersey
If you were recently stopped by store security at a mall in Paramus, Cherry Hill, or Hackensack, you might have received a frightening piece of mail shortly after the incident. This document is known as a civil demand letter. Retailers use specialized law firms to send these letters, threatening legal action if you do not pay a specific sum of money, typically between $150 and $500. Under N.J.S.A. § 2A:61C-1, stores have the legal right to seek civil recovery for shoplifting, including the value of unrecovered merchandise (up to $500) and an additional civil penalty of up to $150. Importantly, under N.J.S.A. § 2A:61C-1(d)(1), a retailer is statutorily required to send written notice giving you at least 20 days to respond before any civil action can be commenced in court. However, these letters cause immense confusion for consumers who are also facing criminal charges. It is critical to understand your rights before you send any money. If you are unsure of how to proceed, you can find a local lawyer in our directory to review your specific situation and advise you on the best course of action.
Civil Demand vs. Criminal Restitution
The most important concept to grasp is that the civil demand process and the criminal justice system are entirely separate. The civil demand letter comes directly from the retailer (or their collections law firm) demanding money for their 'loss prevention expenses' and civil penalties. In contrast, criminal restitution is ordered by a judge at a municipal court, such as the Municipal Court of Paramus, Paramus or the Municipal Court of Cherry Hill, Cherry Hill.
Many people mistakenly believe that if they pay the civil demand letter, the store will 'drop the charges.' This is a dangerous myth. The state of New Jersey-not the retail store-prosecutes crimes. The retailer cannot dismiss your criminal case, and paying the civil demand will not stop a prosecutor from moving forward with shoplifting charges against you.
Does Paying the Letter Mean I Admit Guilt?
From a legal standpoint, paying a civil demand letter is technically settling a civil dispute, not pleading guilty to a crime. However, the information you provide when paying, or the very act of paying, could potentially be communicated to the prosecutor. Because the payment does not benefit your criminal case, most defense attorneys in New Jersey advise clients not to pay the civil demand while criminal charges are pending. Paying the retailer essentially gives them free money without offering you any legal protection in the municipal court.
Will Ignoring the Demand Lead to Criminal Charges?
If you were stopped by security but the police were never called, receiving a civil demand letter does not mean criminal charges are suddenly going to be filed. Retailers typically call the police at the time of the incident if they intend to pursue criminal charges. If you ignore the civil demand letter, the retailer's only recourse is to sue you in civil court, usually in the Special Civil Part. In reality, it costs the retailer far more in attorney fees and court costs to sue you for $150 than they would ever recover. Therefore, civil lawsuits over unpaid shoplifting demand letters are exceedingly rare in New Jersey.
Specific Tactics Used by Macy's and Sephora Loss Prevention
Large retailers like Macy's, Target, and Sephora have highly aggressive loss prevention departments. They often utilize a nationwide database to track accused shoplifters. When you are detained, they may pressure you to sign a 'trespass notice' and a confession. The civil demand law firms they use send a series of progressively more threatening letters. The first letter might ask for $150. If ignored, the second letter might threaten a lawsuit and increase the demand. These letters are generated by automated systems and are designed to scare you into making a quick payment. Keep in mind that a threat to sue is just a threat; actual litigation is governed by precedents like New Century Financial Services, Inc. v. Oughla, 437 N.J. Super. 299 (NJ App. Div. 2014) which requires strict proof of actual damages and debt ownership in civil collections.
| Paying the Demand Letter | You lose money; criminal charges remain unaffected. |
| Ignoring the Demand Letter | You may receive 2-3 more letters; a civil lawsuit is highly unlikely. |
| Calling the Retailer's Law Firm | You risk making statements that could be used against you. |
Step-by-Step Process in New Jersey If You Receive a Letter
If a civil demand letter arrives in your mailbox, it is essential to remain calm and follow a strategic process to protect yourself both civilly and criminally.
Step 1: Do Not Contact the Sender
Never call the law firm or collection agency listed on the letter. The calls are recorded, and anything you say can be used as an admission of liability or guilt.
Step 2: Preserve the Documents
Keep the letter and the envelope in a safe place. Do not throw them away. Your attorney may need to review the exact language used to ensure the retailer is not violating the Fair Debt Collection Practices Act.
Step 3: Check for Pending Criminal Charges
Verify whether you actually have a pending court date. If you were handed a summons by the police, you must address the criminal case first. The civil demand is secondary.
Step 4: Consult with a Defense Attorney
Provide the letter to your local New Jersey criminal defense attorney. They will advise you on whether it is safe to ignore the letter based on the specifics of your case.
Step 5: Respond Only if Sued
In the highly unlikely event that the retailer actually files a civil lawsuit after the 20-day notice period, you will receive an official court summons from the Special Civil Part. At that point, your attorney will file a Form CN 10542, New Jersey, Superior Court, Special Civil Part Answer to formally defend you in court.
How Much Does it Cost in New Jersey?
The civil demand letter itself will request anywhere from $150 to $500. If you choose to hire an attorney to handle your criminal case and advise you on the civil demand, lawyer fees in USD generally range from $1,500 to $3,000 for standard municipal court shoplifting defense. There is no court filing fee to simply ignore a letter.
How Long Does the Process Take?
The collection cycle for civil demand letters typically lasts 3 to 6 months. You will likely receive a sequence of three to four letters spaced a few weeks apart. After this period, the collection firm usually gives up and stops contacting you.
Frequently Asked Questions (FAQ)
Will ignoring the letter affect my credit score?
No. A civil demand letter is not a proven debt. Unless the retailer actually sues you, wins a judgment in court, and you refuse to pay the judgment, it cannot be reported to the credit bureaus to damage your credit score.
Can they demand money even if they got the merchandise back?
Yes. Under New Jersey law, the retailer is permitted to demand a civil penalty of up to $150 to cover their security and loss prevention overhead, even if the item was recovered in perfect condition.
If I pay the letter, will they promise not to call the police?
No. Retailers generally make no guarantees. If they intend to call the police, they usually do so while you are still detained in the store. Paying a letter weeks later will not stop them from pursuing charges if they choose to do so.
Are these letters sent by real law firms?
Yes, the letters often come from real, out-of-state law firms that specialize in retail collections. However, they operate more like a high-volume collection agency and very rarely step foot in a New Jersey courtroom.
No reviews yet. Be the first to share your experience!