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Southwest Missouri | For those who do not know, my day job is associate circuit judge. Half of my docket is criminal, but I also do the debt collection cases among other civil cases.
Something I have noticed lately, debtors will come in and admit that they owe the money but they will say that they have turned it over to a debt counseling service of some type. The debtors will say that they have been paying this service hundreds of dollars a month and the service is supposed to negotiate with the creditor and send the money on to the debtor. I assume that the service will keep some of the money as its fee.
There are some problems. First, I have never had the creditors' attorney know anything about payments if any have been made. We can only speculate what might have happened to any money (assuming that the debtor is telling the truth and they did pay some). Second, only an attorney licensed in that state can represent people in court. Debtors should be informed that if it goes to court, then the debtor needs a lawyer. The service will not be able to do any good in court.
I understand there are some questions about unauthorized practice of law. You might check with your state attorney general.
My point in posting is raise a red flag to people who might need help with their debt. Make sure you know what you are getting. A "debt negotiator" may be able to help you, (maybe not) but you should ask specific questions so that you will know exactly what you are getting. What is the fee? How will it be paid? Are they licensed to practice law?
There are defenses to consumer credit cases that a good lawyer will know about and be able to help the debtors. | |
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Debt help groups...repost from Boiler Room
