When a business asks for payment from you for their losses, this is called a 'civil recovery demand'. If you don’t pay the demand, the business may threaten to take action against you to recover the money in the civil court.

The business may be asking for money for the value of the goods plus staff investigation, administration or security costs.

If the matter goes to court, the business will need to prove that the theft took place. They will also need to prove all of their losses. The business will not be able to claim fixed costs from you and can only claim costs which are reasonable.

You should write a letter back to the business explaining that your daughter did not steal the lip-gloss and, therefore, does not owe them the money being claimed.

You should get advice from an experienced adviser, for example at a Citizens Advice Bureau before writing the letter. An adviser can help you write a letter to the business.

My 14 year old daughter was accused of stealing a £3 lip-gloss from a high street chemist. She denied the accusation and the police were called, but took no action. We thought that was the end of it, but have now received a letter demanding payment of over £100 as compensation to the retailer. They also say they will take her to court if she doesn’t pay. What should we do?  - April 2011