The Legal Implications of Credit Card Chargebacks for Legal Services: Understanding Pennsylvania and Federal Charges

Introduction

A credit card chargeback is a process in which a consumer disputes a transaction and requests a refund from the credit card issuer. While this mechanism is in place to protect consumers from unauthorized transactions, abuse of the safeguards can lead to criminal charges, especially when it involves legal services.

In this blog post, we will explore the implications of initiating a credit card chargeback for legal services when a client has signed a credit card receipt and a contract outlining the terms and fees. We will discuss potential Pennsylvania and federal charges and show you why it’s not wise to improperly make a chargeback attempt.

Pennsylvania Charges: Attempted Theft

When a client signs a credit card receipt for legal services and a contract detailing the terms and fees, they have entered into a legally binding agreement. Attempting to initiate a credit card chargeback in this situation can be considered an act of attempted theft under Pennsylvania law. Attempted theft is covered under 18 Pa.C.S. § 3921, which states that a person is guilty of theft if they unlawfully take or withhold property from another person with the intent to deprive the owner of it. Not ultimately being successful would not make it not be a crime as the intent still remains it merely makes it an Attempted Theft.

In the context of legal services, attempting to initiate a chargeback after agreeing to the terms and fees and especially after signing the receipts can be seen as an effort to unlawfully withhold payment from the attorney or law firm, which could lead to criminal charges.

Federal Charges: Wire Fraud and Credit Card Fraud

In addition to Pennsylvania state charges, individuals who improperly initiate a credit card chargeback for legal services may also face federal charges, including wire fraud and credit card fraud.

1. Wire Fraud (18 U.S.C. § 1343): Wire fraud occurs when a person uses electronic communications (such as phone calls, emails, or faxes) to defraud another person of money or property. In the case of a credit card chargeback, using electronic means to dispute the transaction with the credit card issuer could potentially be considered wire fraud if the intent is to defraud the attorney or law firm out of the agreed-upon payment.
2. Credit Card Fraud (18 U.S.C. § 1029): Credit card fraud involves the unauthorized use of a credit card or credit card information to obtain goods, services, or funds. Initiating a chargeback for legal services after signing a contract and a credit card receipt may be considered an unauthorized use of the credit card, leading to credit card fraud charges.

The Importance of Legal Representation

These charges even for first time offenders are serious. It is not wise to try. If you are upset with the cost or have buyer’s remorse or feel you should have a money back guarantee l, then the best course is to do the old-fashioned thing: call the law firm and talk about it with ownership. Owners of law firms are people. And most lawyers got into law because they actually wanted to help people. If you are reasonable and calm, you will likely get far. Hot-headed and criminally inclined won’t get you anything it new criminal charges.

Conclusion

Initiating a credit card chargeback for legal services after signing a contract and a credit card receipt can lead to serious criminal charges under both Pennsylvania and federal law. If you find yourself thinking about doing that, pause and think of the potential outcome. Instead call folks. Talk to them: human to human. It will go much better than picking up new criminal charges and further complicating your life.