May a Mississippi lawyer let clients pay legal fees and expenses by credit card?

Plain-English summary

A lawyer asked whether he could offer clients a credit card plan to pay his fees and expenses. Under a typical plan, the lawyer (as merchant) contracts with a bank, the client signs a sales slip, the lawyer deposits it and is credited the amount less a percentage fee charged by the bank, and the bank collects from the client (who incurs interest on any delinquency).

The Committee concluded that credit card payment is permitted. Rule 1.5 governs attorney's fees and, while it does not mention credit cards, it does not prohibit them. The opinion noted that the ABA had approved credit card use for legal fees in ABA Formal Opinion 338 (1974), subject to requirements the Committee found sound. Because both the ABA and the Mississippi bar had since adopted advertising rules permitting lawyers to publicize their prices and payment and credit arrangements (Rule 7.2 and its comment), the Committee concluded that no additional restrictions on publicizing a credit card plan were needed beyond those in Rule 7.2 and the related advertising rules.

The opinion permits the practice on four conditions: (1) the lawyer must not encourage participation but may accept the plan as a convenience for clients who want it; (2) the lawyer may not increase his fee because of participation; (3) charges may be only for services actually rendered or cash actually paid on the client's behalf; and (4) the lawyer must scrupulously preserve client confidences and secrets in operating the plan.

Currency note

This opinion was rendered in 1987, before The Mississippi Bar adopted the Mississippi Rules of Professional Conduct (effective June 22, 1994, later amended February 5, 1999), though it cites Rules 1.5 and 7.2 numbered as in the current rules. Subsequent rule amendments or later opinions may have changed the analysis. Treat this page as historical context, not current guidance. Verify against the current Mississippi Rules of Professional Conduct before relying on any specific requirement mentioned here.

Common questions

Q: Can a lawyer accept credit cards for legal fees in Mississippi?

A: Per this opinion, yes. The Committee concluded that Rule 1.5 does not prohibit credit card payment and that a credit card plan is permitted subject to four stated conditions.

Q: Can the lawyer charge more to clients who pay by card?

A: No. The opinion's second condition states the lawyer may not increase his fee for legal services because of participation in the plan.

Q: Can a lawyer advertise that he accepts credit cards?

A: The opinion treats publicity of the plan as governed by Rule 7.2 (which permits disclosing prices and payment/credit arrangements) and imposes no additional restrictions beyond the advertising rules.

Background and rules framework

The opinion applies Mississippi Rule of Professional Conduct 1.5 on fees (the analog of Model Rule 1.5), reading its silence on credit cards as permission rather than prohibition, and Rule 7.2 on advertising (Model Rule 7.2), whose comment allows publicizing prices and payment and credit arrangements. It adopts the substantive safeguards of ABA Formal Opinion 338 (1974) while declining to carry forward that opinion's now-superseded restrictions on publicity.

Citations and references

Rules of Professional Conduct:

• Model Rule 1.5 / Mississippi Rule 1.5: attorney's fees.
• Model Rule 7.2 / Mississippi Rule 7.2: advertising, including disclosure of prices and payment and credit arrangements.

Other opinions cited:

• ABA Formal Opinion 338 (November 16, 1974): approving credit card payment for legal services subject to stated requirements.

See also

• MS Bar Ethics Op. 152: Client's Home as a Fee
• MS Bar Ethics Op. 144: Termination Fees & Client Files
• MS Bar Ethics Op. 202: Stake in a Client's Product

Source

• Landing page: https://www.msbar.org/ethics-discipline/ethics-opinions/formal-opinions/135/
• Original PDF: https://www.msbar.org/media/1427/35a_et_op_135.pdf

Original opinion text

Reproduced from the official source for research purposes. The linked source is authoritative.

ETHICS OPINION NO. 135

OF THE MISSISSIPPI BAR

RENDERED September 11, 1987

FEES- The use of credit cards for the payment of legal services and expenses is permitted.

The Ethics Committee of the Mississippi State Bar Association has been requested to render an opinion on the following facts:

A lawyer wants to know if he may offer a credit card plan to his clients, under which the clients could pay the lawyer's legal fees and expenses.

A typical credit card plan is entered into between a bank or other financial institution and a merchant (lawyer in this case). A cardholder (client) under the plan would engage the lawyer for the performance of legal services, and the client would sign an authorized sales slip of the bank in payment of the legal fees. The lawyer would then deposit the sales slip in his account at the bank, and the bank would credit his account for this amount. The bank would then charge the lawyer a designated percentage of this sum as its fee for collecting the account from the client. The bank would then proceed to collect the account from the client, and the client would incur interest charges on delinquent accounts.

Rule 1.5 of the Mississippi Rules of Professional Conduct deals specifically with the subject of attorney's fees. Although the payment of legal services by means of credit cards is not specifically mentioned in this Rule, it should be noted that neither is such practice prohibited therein. Mississippi Rules of Professional Conduct, Rule 1.5.

The American Bar Association has approved the use of credit cards for the payment of legal services, provided that such plan meet certain stated requirements. ABA Formal Opinion 338 (November 16, 1974). This Committee believes that the guidelines set forth in said Opinion are sound, and that the respective interests of lawyers and clients are adequately protected under the requirements stated therein. However, said ABA Opinion contains several restrictions concerning the publicity surrounding, and the advertising of, a credit card plan for lawyers. Since the time that such opinion was rendered, both the American Bar Association and the Mississippi State Bar Association have adopted provisions allowing attorneys to advertise their services through the public media. A.B.A. Model Rules of Professional Conduct, Rule 7.2; Mississippi Rules of Professional Conduct, Rule 7.2. In particular, this Rule permits public dissemination of information concerning the lawyer's prices for specific services and payment and credit arrangements. Mississippi Rules of

Professional Conduct, Comment to Rule 7.2. As a consequence, this Committee believes that no additional restrictions concerning the publicity and advertising of such a credit card plan should be imposed, beyond those set forth in Rule 7.2 and the related rules on lawyer advertising.

Therefore, it is the opinion of this Committee that the use of credit cards for the payment of legal services and expenses is permitted, provided that the credit card plan offered by the lawyer meets these requirements:

1. A lawyer shall not encourage participation in the plan, but his position must be that he accepts the plan as a convenience for clients who desire it.

2. A lawyer may not because of his participation increase his fee for legal services rendered the client.

3. Charges made by lawyers to clients pursuant to a credit card plan shall be only for services actually rendered or cash actually paid on behalf of a client.

4. In participating in a credit card program the lawyer shall scrupulously observe his obligation to preserve the confidences and secrets of a client