I have a client that has not paid since November. There seems to be a problem with Paysystems they keep telling me because their credit card is fine.

After reinserting the order twice into Paysystems it was declined and declined again.

I suspended the account for a day until they spoke with me and I reinserted the order with Paysystems again... still no lucky but I unsuspended their account without making sure payment went through because of all their complaining. :rolleyes: (This was last month)

Today I sent them a notice saying there account will be suspended if payment is not received (for the second time) and provided the client login page for Paysystems to update and view their billing information.

The client sent a reply saying they will have their lawyer contact me if I suspend the account :eek: :rolleyes:

The funny thing is the account they have is $5.95 per month US!
I lawyer is about $100 US per hour :D

My Terms of Service page clearly states -
http://www.towerhost.com/support/aup.php

"Refusal of Service:
We reserve the right to refuse, cancel, or suspend service at our sole discretion. "

They now owe 3 months of payment including February. I told them to send payment by Money Order because there seems to be a problem with their card or bank and Paysystems.

I want to know if I am really safe legally? Am I doing the proper thing here? I'm trying to keep the client happy but they just can't have service for that long without paying.

What are the grounds of the client on this legally, what can they do and how can I protect myself for future knowledge?

They don't have a case. "They suspended my account because I haven't paid for 3 months!" LOL

Tell them to send you a check for the services if they still want them.

One more thing...

Add this to your TOS:

Our liability on any account is limited to the amount of money that the customer has paid us.

Tell them they have 3 days to find another host. Put it in writing and letter head and fax to them. They can not sue you. They are just trying to get free hosting.

You can give them one other option. A Certified bank check via fedex with tracking number.

As long as you give them ample time to retrieve their site from your server, it will be ok.

If it is a company, file a complaint with their local better business bureau and the chamber of commerce.