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Can i file a lien when custiomer disputes a credit card charge

I had a customer who paid for 4 new shower enclosures and mirrors installed 10/19/2019. I just received a chargeback from american express telling me job was never completed. Job was paid in 3 seperate charges using Amex. This is a lady preacher building her new 5k sq ft home. Job was completed 6 months ago and all glass was custom sized specifically for her home. Any options available for my small business.`

2 replies

Mar 5, 2020

Generally, where a contractor has actually performed and completed the work, it should be possible to win the chargeback dispute. Providing documentation that clearly indicates the project was completed (like photo documentation, inspection records, texts, emails, or other documents indicating the project was completed or accepted) should go a long way toward succeeding in a chargeback dispute. And, if you're unsure of how, exactly, to dispute the chargeback - it might be worth reaching out to the credit provider. If unable to win the chargeback dispute, note that it may be too late to file a statutory mechanics lien. In Texas, the deadline to file a mechanics lien will on residential property generally be the 15th day of the 3rd month after the month when labor or materials were last furnished to the project. If that sounds confusing, you can see a handy chart here: When is the deadline to file a Texas Mechanics Lien? Of course, even if mechanics lien rights aren't available, there are still some other recovery options that could help to get paid.

Recovery options outside of the statutory mechanics lien process

There are a number of other tools that could help recover payment. So, let's break things down a bit further.

Constitutional lien

In Texas, parties hired directly by the property owner are entitled to constitutional mechanics lien rights in addition to the normal statutory mechanics lien rights. And, unlike a statutory mechanics lien, constitutional liens don't really have a deadline. In fact, they don't technically even need to be filed at all. Though, in order for the lien to be fully effective, it should be filed in the property record much like a traditional statutory mechanics lien. So, if an owner wins a fraudulent chargeback claim, pursuing a constitutional mechanics lien claim may be an option. More on Texas contitutional liens here: (1) Texas Constitutional Lien Rights Process; (2) Help With Constitutional Liens; and (3) Help filing a constitutional lien then foreclosing in Texas.

Notice of Intent to Lien

A constitutional lien can be a powerful tool. But, the mere threat of filing a lien is powerful, too. So, sending a document like a Notice of Intent to Lien can show a property owner that you're serious about getting paid. Considering the potential fallout from a lien claim, most owners can't afford to brush off the threat of a lien.

Demand letters

Threatening to pursue legal action by sending a payment demand letter may help to push for payment, too. Demand letters will generally put a hard deadline on when payment must be made, and they'll let an owner know that you're willing to do whatever it takes to make sure you're paid.

Legal options

When a customer has improperly made a chargeback and left you unpaid, there will usually be a number of different legal claims on the table. For one, failure to pay will usually result in breach of contract and interest penalties under Texas' prompt payment laws. And, if an owner has clearly performed a fraudulent chargeback, additional claims - like fraud - could be available, too. To best assess legal options, it'd be wise to consult a local Texas construction attorney.

Collections

Yet another option might be to send the debt to collections. If that sounds like a good option, this article on top collection agencies should help. And, you can contact a collections expert directly, here: Construction Collectors in Texas.

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Jul 15, 2021

Reading this, I'm a little confused how AmEx would actually authorize the chargeback unless they had acceptable reason to do so. I'm currently going through this concern with an HVAC project I had installed where the contractor provided equipment, unbeknownst to me until I went to gather information for product registration, that was clearly NOT as described in the quote. Additionally, there are other issues with the equipment and installation that haven't been resolved because the contractor generally wont accept my calls. Regardless, Discover is requesting all sorts of proof of the contractors fault/failure and had indicated at one time they rely on proof, not the word of either party - so it must be documented by having paperwork, or pictures. Finally, it's not a one sided chargeback with no countering of information from the contractor, so to me it sounds like the OP's situation is in the first stage and not final (meaning money hasn't been actually charged back from the contractor). I do love when questions like this pop up on the web where readers don't get closure on what fully transpired all the way to the end. So the main question is, how did AmEx file the chargeback if there wasn't enough reason to do so? I know the original poster is probably long gone to answer this, but I will say that I have the same concerns, but in the opposite direction being the homeowner. I'm concerned that whatever resolution there is through Discover may result in some sort of lien being filed. When the project was completed and all thought to be in good shape, I wasn't terribly concerned about about a lien waiver since I had a paid-in-full receipt, which I'd think could generally can be used as proof of payment along with a matching credit card statement against a potential falsely filed lien; however in my case, as pointed out above, a lien might be possible to get filed against me if resolution doesn't involve 100% credit where the contractor comes to remove the equipment entirely. Of which, during one of the few conversations I could actually get with the owner, he profanely threatened he was going to do - that would actually be my preference to just move on entirely from his operation and have someone else install new equipment, and then at that point demand as part of the resolution for him to sign a document that says the equipment was entirely removed such that no lien could be filed, or at least I'd have proof to dismiss such lien.

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