US Company Legal Power to AU Consumer

ryanjk

New Member
Jurisdiction
Michigan
I have an outstanding balanced of $80 owed to a US based hosting company for unpaid fees. I chose not to pay them due to incredibly poor customer service and general frustration with working with the company.

They work on a monthly post pay system and the amount has been owed since February 2020.

The amount itself isn't an issue but it's the principle of paying money to a company who offered a terrible service that I have refused to pay them.

Just recently their collections department emailed me saying that I have 10 days to pay or they will take legal action to retrieve the owed balance and I will be liable for covering legal costs accrued during the process.

Here are there terms of service which I "agreed to" by using their services:

2.4. Late Payments. Liquid Web may suspend all Services provided to Customer if Customer fails to pay any Fees when due. In addition, if any undisputed amount is not paid when due, Liquid Web may impose a late charge in an amount equal to one and onehalf percent (1 ½%) (or the maximum legal rate, if less) of the unpaid balance per month. In the event a payment is received by Liquid Web and is returned for insufficient funds or bank charges, Customer shall reimburse Liquid Web for all associated processing charges as well the late charge to the extent applicable. In the event that non-disputed payments are received late or returned by insufficient funds more than three (3X) times annually, Liquid Web may require that Customer establish a deposit and or pay with guaranteed funds. Customer will reimburse Liquid Web for all expenses Liquid Web incurs, including reasonable attorney fees, in collecting any amounts past due under this Agreement.

I am an Australian citizen, this company is based in the US (Michigan). As far as I know the only details they have about me is my name and email address, and they would have logged my IP address being a web hosting company.

What grounds do these guys actually have to collect this money and charge me with the legal fees?

I have zero legal experience whatsoever, however I would assume they are powerless unless they take legal action in Australia.

My main concern is if they take legal action, will this be waiting for me if/when I ever enter the united states as a tourist?

Appreciate any advice.
 
I have zero legal experience whatsoever, however I would assume they are powerless unless they take legal action in Australia.

You ASSume incorrectly, mate.

I am a citizen of the USA, but when I was active duty military, I served as the Defense Attache to the US Ambassador in Canberra.

I am also an attorney, and at the time, A JAG in the US Army.

I earned the designation of Queens Counsel, as well as attorney licensure in Australia.

I can tell you that the company can ATTEMPT to bring a lawsuit against you in Australia, as readily as they might in the USA.

However, for the piddly sum of $80 US dollars, they could do you more harm by reporting your recalcitrance or obstinance to pay your just debt.

They could also choose to NOT waste time or effort, losing good money chasing bad.



What grounds do these guys actually have to collect this money and charge me with the legal fees?

I suggest you read the terms of service and contract provided to you by the vendor, which will provide you with all of answers you seem not to comprehend.



My main concern is if they take legal action, will this be waiting for me if/when I ever enter the united states as a tourist?


The USA does not pursue anyone because he or she owes debts, nor do any of it's 50 states and six odd territories.

Bad debts are treated as civil matters in the USA.

As far as "Liquid Web" is concerned, they appear to maintain a physical presence in the USA and many other countries. They appear to have a somewhat large footprint in San Antonio.

I think they could see you where you might NOT expect to see them.

Liquid Web | Managed Hosting & Custom Solutions

They also own and operate under a myriad of names.

I have little doubt that if you stiff them, it would be made known to many others in their industry.

Good luck, and remember, "You're FREE to choose, so ALWAYS choose wisely!"
 
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