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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OPINION NO. 72-2 WHICH CONFLICTS HEREWITH IS HEREBY RESCINDED.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 Opinions No. 72-2
prohibited the use of credit cards unless the Bar Association specifically
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whether our Opinion No. 72-2 should be rescinded and under what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 overruled 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 advertising
relating to the credit-card plan because such activity would be
prohibited under EC 2-9 and DR 2-101(A) and (B), 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 announcement that
the credit card plan has been approved for use by Nebraska lawyers.
2) No
directory of any kind shall be printed or published 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 participating 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 involve complicating
questions of proper refunds, etc., in case the services were not
fully rendered as 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).
6) In
participating in a credit card program the attorney shall scrupulously
observe his obligation to preserve the confidences and secrets of
his client.
7) Since
the charging of interest is a necessary corollary to the use of
credit cards, interest may be charged provided that the client is
advised by the lawyer and agrees to the payment of interest upon
accounts after a stated period of time.
75-1, January 17, 1975
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