I was just reading a recent case filed against Freedom Debt Relief, Freedom Financial Network, Global Client Solutions, and Brad Allen. The case alleges that the defendants violated the debt relief provisions of the bankruptcy code, violated California law, engaged in the unauthorized practice of law and violated the California consumer fraud act. You can read the full complaint here.
The reason this caught my eye is twice this week I’ve heard or read the argument that debt settlement services are activities that only a lawyer can deliver.
The first time was in the arguments presented by an attorney from Greenspoon Marder, Richard Epstein, while representing Consumer Law Group. In the courtroom this week his position in the State of North Carolina vs. Consumer law Group was debt settlement was debt adjusting and by it’s very nature was the practice of law and something lawyers do on a regular basis. – Source
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Now comes this case, filed just days ago, that states:
- The actions and advice of Defendants constituted the providing of advice, counsel and direction to Plaintiffs, knowingly engaging in the unauthorized practice of law.
- Defendants’ statements and actions created or reinforced the impression that Defendants were acting in Plaintiffs’ best interests, and knew what they were talking about.
- Defendants derived a benefit from engaging in the unauthorized practice of law.
- Defendant caused injury to Plaintiff by engaging in the unauthorized practice of law.
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