![]() ![]() Evaluating the facts and evidence of your case.In addition, your attorney will be able to provide such assistance as: Therefore, you need an experienced attorney who understands the nuances of business contracts and will fight tirelessly to ensure you are paid what you are owed. But the help of a lawyer is recommended as business lawsuits are often based on express and implied contractual terms. As a result, some businesses suffer to the point of needing to suspend certain activities, close the business, and in extreme cases, file for federal bankruptcy protection.Ĭonsidering all of the expenses already in play with a non-paying client, you may want to try to sue a client yourself to save some money. Finally, many backed-up and unpaid invoices can hurt your business’s bottom line. Another reason is lost business opportunities from other clients. Just think about all of the invoices, the demand emails, and the tense negotiation about whether and for how long your business can or will continue to provide services in the future when a client owes you money from the past. Most notable of these reasons is that your business has wasted time and effort to provide services to one client, most likely at great time and expense, to the detriment of other clients (because no one can be everywhere at once!)īesides wasted time and effort, businesses often have to waste resources to collect payment. There are several reasons to sue a client for not paying bills due and owing to your business. Reasons to File a Lawsuit for Non-Payment of Services This is where a skilled breach of contract lawyer in Houston like Seth Kretzer can help you collect your unpaid invoices through a variety of techniques. If you are facing a non-paying client, you probably want a quick resolution, but you don’t want to gain a bad reputation that might scare future clients away. These consequences include interrupted cash flow and the inability to pay employees, suppliers, vendors, and investors. The experienced business owner also knows the consequences when more than one client ignores an invoice, starts making excuses, or goes silent at the same time. The basis for this position is to address any potential Unfair, Deceptive and Abusive Acts and Practices (UDAAP) application if a customer has no potential to receive benefit from your overdraft program.It’s a simple enough concept – you’ve done work for a client, and now, you want to get paid.Īnyone who is in business knows the sinking feeling that creeps in when dealing with a shady client who doesn’t seem like they are going to pay their invoice. If a new customer checking account is in the waiting period before a limit is assigned, or if an accountholder’s limit has been taken away for some reason, you cannot charge an overdraft fee for these force-pay caused overdrafts, even if that customer has “opted in”. These are referred to as “no pay” accounts in CFPB terms. Strunk met with David Stein, co-author of Regulation E, at the CFPB and he clarified for us that institutions should not be charging fees on consumer accounts if the bank would not normally authorize the electronic transaction. “Force Pay” debit card or ATM items that overdraw an account cannot be charged an overdraft fee if the account does not have an overdraft limit and the consumer has not “opted in” for Regulation E purposes. ![]() How should financial institutions handle these transactions to make sure that they are in compliant with all regulatory requirements. ![]() In this scenario the debit card transaction is paid and the financial institution is not allowed to return items to the merchant that are presented for payment. The consumer then puts $50 worth of gas in their vehicle. Once the consumer swipes their debit card at the gas pump the merchant receives an authorization for $1. An example of a “force pay” debit card transaction is if a consumer is at the gas pump and that consumer has $5 in their checking account. A “force pay” debit is a special transaction code used by the financial institution to insure that a debit purchase clears an account first. As long as you make a deposit or have enough money in your account to cover the transaction, you don’t have to take further action. The codes are used for a variety of reasons. Financial Institutions encode items with a special transaction code to ensure payments are received before other items clear an account. ![]()
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