Could a Nebraska lawyer accept a credit card for earned fees and advanced expenses under the rules applied in 1975?

Plain-English summary

Nebraska Opinion 72-2 had prohibited credit-card payments unless the bar association approved and participated in the plan. After the ABA adopted Formal Opinion 338, the committee agreed with the ABA's changed position and rescinded Opinion 72-2.

The committee permitted a credit-card plan only under seven conditions. Neither the lawyer nor the card company could publicize the plan; no directory of participating lawyers could be published; and promotional material was limited to a small, tactfully displayed office insignia. A lawyer could accept the plan as a client convenience but could not encourage its use or increase the legal fee because of participation.

Charges could cover only services already rendered or cash already paid for the client, not a retainer for future services. The lawyer also had to preserve client confidences and secrets. Interest could be charged only after the lawyer advised the client and the client agreed to interest after a stated period.

Currency note

This opinion was issued in 1975, before Nebraska's adoption of the 2005 Rules of Professional Conduct. Subsequent rule amendments or later opinions may have changed the analysis. Treat this page as historical context, not current guidance. Verify against current rules before relying on any specific rule, deadline, or requirement.

Common questions

Q: Could the card be charged for a retainer covering future work?

A: No. The opinion limited credit-card charges to services already rendered and cash already paid on the client's behalf.

Q: Could a lawyer advertise participation in the plan?

A: No. The lawyer and card company could not disseminate publicity or advertising about the plan, and the lawyer could not encourage participation.

Q: Could the lawyer charge more because the client used a credit card?

A: No. The opinion stated that participation could not cause an increase in the fee for legal services.

Q: Did the opinion permit interest on overdue accounts?

A: Yes, if the lawyer advised the client and the client agreed to interest after a stated period.

Background and rules framework

The committee relied on ABA Formal Opinion 338 and the Code of Professional Responsibility's advertising provisions, EC 2-9 and DR 2-101(A) and (B). It also identified client confidentiality as a condition of participation.

Citations and references

Former Nebraska Code of Professional Responsibility:

• EC 2-9
• DR 2-101(A) and (B)

Other opinions cited:

• ABA Formal Opinion 338
• ABA Formal Opinion 320
• ABA Informal Opinion 1120
• ABA Informal Opinion 1176
• Nebraska Opinion 72-2 (rescinded by this opinion)

See also

• Nebraska Ethics Op. 95-4: Credit-card advance fees
• Nebraska Ethics Op. 06-02: Flat fees and trust accounts
• Nebraska Ethics Op. 09-02: Missing-client trust funds

Source

• Landing page: Nebraska lawyer ethics opinions archive
• Original PDF: Nebraska Ethics Advisory Opinion 75-1

Original opinion text

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

Best-effort transcription from a scanned PDF. Minor errors may remain; the linked PDF is authoritative.

LLOYD L. POSPISHIL WILLIAM J. RPAIRD, Chairman CHARLES F. ADAMS

$24 East list St. 1500 Woodmen Tower Box 167 Sehuyler 68661 Omaha 64162 ; Aurora 68816 BERT L. OVERCASH JOHN W. DELEHANT i THOMAS F, COLFER 1241 N St, 2400 So. 72nd Ave. Bex 100 ; Lincoln 60508 Omaha 89124 ' McCnok 69001 IVAN VAN STEENBERG Box 100A

Kimbsll 69145

The Aadvisury Committee
of the

Nebraska State Bar Assuriation

January 17, 1975

Opinion No. 75-1

The use of credit cards for payment of legal services previously rendered and expenses previously advanced is permitted if the guidelines specified in this opinion are followed. Interest may be charged on delinquent accounts with the client's agreement, Opinion No, 72-2 which conflicts herewith is hereby ‘rescinded.

QUESTION PRESENTED

On November 16, 1974, the American Bar Association adopted Formal Opinion 338--which allows the use of credit cards subject to certain specified guidelines. Our prior Opinion No. 72-2 pro- hibited the use of credit cards unless the Bar Association specif- ically approved and participated in the plan. The question presented is whether our Opinion No. 72-2 should be rescinded and under what specific guidelines. ,

DISCUSSION
The ABA Formal Opinion No. 338 refers to the following

prior ABA opinions on this subject: Formal Opinion 320 and

Informal Opinions 1120 and 1176. The ABA now rules that the

recently adopted Code of Professional Responsibility "has over-.

ruled Informal Opinion 1176 and that the use of credit cards

for payment of legal expenses and services is permitted under

the Code, providing all of its provisions are fully and completely

observed." We concur in the new ABA position and hereby rule

that a credit card plan conforms to the Code provisions and that

the considerations flowing therefrom if the plan requires that:

1) Neither the participating lawyer nor the credit card company shall disseminate any publicity or

LLOYD L, POSPISHIL WILLIAM J, BAIRD, Choirman CHARLES F, ADAMS

324 Fust 11th St. 1600 Woodmen Tower Box 167 . Schuyler 68661 Omeha 68102 | Aurora 69818 BERT L, OVERCASH . JOHN W, DELEHANT i THOMAS F, COLFER 1241 N St. 2400 So. 72nd Ave. Box 100 Lincoln 68608 Omeha 68124 McCook 6900! IVAN VAN STEENBERG Box 1008
’ ° Kimball 69145
Ohe Advisory Committee °
of the
Cor/ ¢ oO .
Nebrasku State Bar Association
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advertising relating to the credit-card plan because such activity would be prohibited under EC 2-9 and DR 2~101(A) and (8B), all of which prohibit any publicity or advertising either

by the lawyer or by other persons on his behalf. The proper official of the Nebraska State Bar Association may make a discreet public announce- ment that the credit card plan has been approved for use by Nebraska lawyers.

2} No directory of any kind shall be printed or pub- lished of the names of individual attorney members who subscribe to the credit card plan.

3} No promotional materials of any kind will be supplied by the credit card company to.a partici- pating attorney except possibly a small insignia to be tactfully displayed in the attorney's office indicating his participation in the use, of the credit card.

4) 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; and the lawyer may not because of his participation increase his fee for legal services rendered the client.

5) 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; consequently, a credit card may not be used for a retainer for future services, since this would in- volve complicating questions of proper refunds, etc., in case the services were not fully rendered as

LLOYD L. POSPISHIL
324 East ith St.
Schuyler -68661

BEXT L. OVERCASH
A241 N St.
Lincoln 68508

6)

7)

WILLIAM J. BATRD, Chairman CHARLES F, ADAMS

1500 Woodmen Tower Box 187
Omaha 69102 Aurora 68818
JOHN W. DELEHANT i THOMAS F. COLFER 2400 So. 72nd Ave. Bux 100 Omaha 68124 McCook 6900! IVAN VAN STEENBERG Box 1008
: ° imball 69145
Che Adnisorn Commitice Kim
of the
fond J *
Nebraska State Bar Associntion
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contemplated by the attorney and client (see discussion of old Canon 12 in ABA Formal Opinion 320 and the complications envisioned thereunder in credit plans administered by Bar Associations).

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

Since the charging of interest is a necessary corollary to the use of credit cards, interest may be charged provided that the Client is ad- vised by the lawyer and agrees to the payment of interest upon accounts after a stated period of time.