Is it legal if the company I work for wants me to just start charging customer’s credit cards if their account goes past 30 days?

UPDATED: Sep 29, 2022

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Is it legal if the company I work for wants me to just start charging customer’s credit cards if their account goes past 30 days?

They said we will tell the customer our intentions and if we do not hear back from them then that is their authorization to do so. I feel like this is unethical and am wondering if it constitutes credit card fraud?

Asked on September 21, 2015 under Business Law, Missouri


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

It ia not illegal IF the customers had such clear, unmistakeable notice of this policy BEFORE deciding to do business with you that by going ahead and agreeing to do business, the customers can be said to have agreed to this policy. There must be customer agreement, either explicit or implicit inferred from doing business in the presence of clear notice, which makes the clarity and timing of the notice critical. Since the terms cannot be changed after the fact, only customers who agreed before buying your gopds or services can be charged this way.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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