Can a lawyer accept credit cards for legal fees and charge interest on overdue client accounts?
Apply this to your situation
This page answers the general question as of 1975. Ezel answers yours: whether it's allowed on your facts, under the current rules of professional conduct in your state, with citations.
Plain-English summary
Opinion E-75-1 records the committee's decision to adopt ABA Formal Opinion 338 (dated November 16, 1974) on the use of credit cards for paying legal fees and the charging of interest on delinquent accounts. Reproducing ABA Opinion 338, the committee stated that the use of credit cards for the payment of legal services and expenses is permitted if specified guidelines are followed, and that interest may be charged on delinquent accounts with the client's agreement.
The adopted ABA guidelines require, among other things, that publicity and advertising relating to a credit card plan have prior written approval of the bar committee with jurisdiction over the attorneys' professional ethics; that no directory of participating attorneys be printed; that the card company supply no promotional materials beyond a small office insignia; that a lawyer not encourage participation but accept the plan only as a convenience and not increase fees because of it; that charges be only for services actually rendered or cash actually paid; and that the lawyer scrupulously preserve client confidences and secrets. On interest, the opinion stated that a lawyer may use a credit card system involving interest on delinquent accounts, and may charge a client interest if the client is advised the lawyer intends to do so and agrees to pay interest on accounts delinquent beyond a stated period.
The committee added a Wisconsin-specific caution. It found that the standard charge or credit card agreements it examined would, for example, give the participating bank full access to the lawyer's supporting records, which without the client's consent would violate the duty of confidentiality (guideline 6). The committee therefore advised that a lawyer entering such a program insist on an amendment, signed by both the lawyer and the contracting party, providing that any conflict between the contract and ABA Opinion 338 or this opinion be resolved in favor of those opinions. The committee noted the opinion did not address whether a lawyer's charging of interest may be subject to the Wisconsin Consumer Act.
Currency note
This opinion was issued in 1975, before Wisconsin's July 1, 2007 adoption of the revised Rules of Professional Conduct for Attorneys (the state's Ethics 2000 update), and it adopts ABA Formal Opinion 338 under the former Code of Professional Responsibility. The current counterparts are SCR 20:1.5 / Model Rule 1.5 (fees) and SCR 20:1.6 / Model Rule 1.6 (confidentiality of information). 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 mentioned here.
Common questions
Q: Can a lawyer let clients pay legal fees by credit card?
A: Yes, within limits. Adopting ABA Opinion 338, the committee said credit card payment of legal services and expenses is permitted if the listed guidelines, covering advertising approval, no participant directory, limited promotional materials, and confidentiality, are followed.
Q: Can a lawyer charge interest on a client's overdue bill?
A: Yes, with the client's agreement. The opinion states a lawyer may charge interest if the client is advised the lawyer intends to charge it and agrees to pay interest on accounts delinquent beyond a stated period.
Q: What confidentiality concern did the committee flag about credit card agreements?
A: That standard agreements give the card company or bank full access to the lawyer's records supporting the charge. The committee said this would violate the duty to preserve client confidences absent the client's consent, and advised inserting a contract amendment subordinating the agreement to ABA Opinion 338 and this opinion.
Background and rules framework
The opinion adopted ABA Formal Opinion 338 under the former Code of Professional Responsibility, addressing fees and the duty of confidentiality in the context of credit card payment plans. The current counterparts are SCR 20:1.5 / Model Rule 1.5 (fees) and SCR 20:1.6 / Model Rule 1.6 (confidentiality of information).
Citations and references
Rules of Professional Conduct:
- Model Rule 1.5 / SCR 20:1.5 (fees)
- Model Rule 1.6 / SCR 20:1.6 (confidentiality of information)
Other opinions cited:
- ABA Formal Opinion 338 (Nov. 16, 1974): credit cards for legal fees and interest on delinquent accounts, adopted in full
See also
- WI Ethics Op. E-80-13: Interest Charge on Delinquent Accounts
- WI Ethics Op. E-76-6: Attorney Participation in a Client Fee-Financing Plan
- WI Ethics Op. E-09-03: Communicating Fees and Expenses to Clients
Source
- Landing page: https://www.wisbar.org/formembers/ethics/pages/formal-opinions.aspx
- Original PDF: https://www.wisbar.org/formembers/ethics/Ethics%20Opinions/E-75-1.pdf
Get today's answer for your situation
You just read a 1975 opinion on this question. Ezel checks the current rules of professional conduct in your state and answers your specific situation, with citations.
Opens in Ezel Pro. Every answer cites the rules it relies on.