If I have a client that owes almost 70k in overdue invoices and it has paid us via credit card for all their invoices previously, am I allowed to charge their credit card for the amount due?

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If I have a client that owes almost 70k in overdue invoices and it has paid us via credit card for all their invoices previously, am I allowed to charge their credit card for the amount due?

I own an incorporated business. I have contacted my former client’s auditing and legal team with no response to our demands for immediate payment for roughly 2 weeks now. If I charge the credit card, am I subject to credit card/wire fraud charges since it is for money owed? Why should I have to chase them for money owed to us? Shouldn’t they have to bear the burden of proof to show the charges aren’t legitimate?

Asked on October 23, 2012 under Bankruptcy Law, Indiana

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

I suggest that the best way to get yourself paid without running the risk of a claim of improper charges on your client's credit card is to write a letter to its accounting department and send it regular mail as well as e mail stating the amount owed, prior payments for amounts owed on the credit card that your were authorized to charge upon and your intent to charge a certain amount due on the credit card within the next five (5) days unless someone from the client that owes you money calls and writes you stating that you cannot.

By doing such you cover yourself and flush out the client's intent to pay you or not.


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