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?

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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

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 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.


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