Can a client cancel a non-refundable payment plan before the service is completed?

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Can a client cancel a non-refundable payment plan before the service is completed?

I am a branding coach and I help entrepreneurs create their brands and grow
their social media accounts. I have a client who signed up for my services on
a non-refundable payment plan.

I have virtual meetings with my clients twice per week for one hour. This
particular client never makes it to our meetings and rarely reaches out to me
for help despite my multiple emails to contact her to provide my help. She is
now stating that she is unhappy with my services and wants to cancel.

Before my clients begin a payment plan, they check a box acknowledging
that the service is non-refundable. If she cancels her card, is there a way to
still get able to charge her?

Asked on March 6, 2018 under Business Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

1) No, if they sign a contract specifically stating that the fee is nonrefundable, they cannot cancel and avoid paying: they are contractually locked in. Only if the other party (the service provider; you) either committed fraud (lied about they could or would do) or breach the contract (fail to honor their obligations) would the customer be entitled to terminate it and get money back.
2) Given that they are legally/contractually obligated to pay, if they try to get their credit card company to stop payments, you can dispute it and they should reinstate. If payments are fully cut off, such as by canceling the card, you could sue her for the money (e.g. in small claims court).


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