This book outlines your rights and gives you basic information about enforcing
them. In many cases, exercising your legal rights is difficult because the applicable
law and court procedures are complicated. You may need a lawyer or a nonprofit
counselor to help you with enforcing many of your rights. You may also need
help to apply material in this book to your particular situation.
An additional factor is that state instead of federal law governs many of your
rights. These laws can vary substantially from state to state. You may need
to get more information of the laws applicable to your state. We have tried
to point this out whenever possible.
Hiring a Lawyer. It can be difficult to get legal
help when you do not have much money. A good place to start is any option in
your area for free legal services. In most communities (or close by if you live
in a rural area), there are organizations which provide free legal help to people
whose income fall below certain amounts. Although Congress has unfortunately
cut back on funding for these organizations, they continue to exist and should
be sought out if you need help.
These organizations vary widely on the type of cases they handle. They also
have strict income limits so that they are forced to turn away many cases. However,
it can't hurt to ask. If they can't help you, they generally will make a referral
to the appropriate legal organization (often called "bar association"),
sometimes for free help from a private lawyer. They also may have special pamphlets
or other helpful information on your state's laws.
If you need to pay for a lawyer, it is important to get competent help. All
lawyers, like all doctors and all accountants, are not the same. You should
try to find someone who has expertise in consumer rights. A first step is to
try to get a referral from a friend or relative to a lawyer who has done good
work in the past. If you cannot get a referral, try calling your state or county
bar association. Most such organizations maintain a referral service that will
give you names of lawyers who specialize in consumer credit problems.
You should always have an opportunity to talk to a lawyer before you agree
to pay for that lawyer's services. Make sure you have a clear idea of what the
lawyer will do for you and what you will be charged. You should know whether
you are paying an hourly rate or if you are paying a flat fee for a particular
service. If you pay a flat fee, you should be sure to get a written statement
of what the fee covers.
After you have signed a "retainer" (a contract with the lawyer laying
out the services to be provided and how much you will pay), if you are dissatisfied
with the service you are getting, you can always cancel. You will only have
to pay for services you have already received. If you are entitled to a refund
that you do not receive, consider making a complaint to the local disciplinary
agency for attorneys.
Unfortunately, the cheapest lawyer will not necessarily be the best. Price
should not be the only consideration when hiring a lawyer -- although it is
always a factor. Be sure to get someone who you feel comfortable will help you
with the specifics of your problem. Lawyers should be willing to provide a free
initial consultation. They should also be willing to explain the potential consequences
of doing nothing about your delinquent debt. You do not want to pay a lawyer
if there are no negative consequences for you if you just ignore your debts.
Finally, lawyer advertising has become a problem in our society. Some lawyers
review court lists to find out who is being sued or read published foreclosure
notices, and then solicit these individuals. Some lawyers make outrageous claims
in their advertisements. Although not all lawyers who advertise are bad, you
should not take an advertisement at face value. Make sure you know what the
lawyer will do for you and whether the advertised services meet your needs.
An eye-catching advertisement alone is not a good reason to hire a particular
lawyer.
Getting Help From a Counselor. If you cannot afford
a lawyer or if you feel you don't want one, another place to get help is from
a nonprofit counselor. Many communities have both nonprofit "debt"
counselors and nonprofit "housing" counselors. If you have a housing
related problem, a housing counselor is probably preferable.
Counselors cannot offer the full range of services which a good lawyer can
provide, but they can often help with some specific issues. Counselors, like
lawyers, may focus on some options rather than others. You should be sure you
understand what the counselor can do for you and make sure you feel the options
offered include the right choices for your circumstances.
Some nonprofit counselors charge a fee to cover their costs. Others are free.
Make sure you know from the beginning if there is a charge for counseling and
how much it will be. If the fee seems unreasonable, find other help.
Finding a nonprofit counselor can sometimes be difficult. Try calling city
officials, legal services, a consumer help line, or a friend or relative who
has had similar problems. Sometimes a helpful creditor will make a recommendation.
No matter where the recommendation comes from, make sure you exercise care that
you are dealing with a legitimate nonprofit counselor from a reputable organization
with expertise in the area in which you need help.
Always avoid "for profit" debt counseling. This has become a significant
consumer rip off. The charge for such counseling will almost always exceed the
value of the counseling. Additionally, many such counselors are geared to funneling
business to high interest rate lenders and other disreputable businesses which
take advantage of people with financial problems. These businesses will only
make your problems worse.
and NCLC