Yesterday the Consumer Financial Protection Bureau (“CFPB”) released its proposed rule “Defining Larger Participants in Certain Consumer Financial Product and Service Market.” The proposed rule calls for the CFPB to regulate certain attorneys to protect the public welfare. Why? Becuase, Collection attorneys and law firms may collect through litigation (i.e., filing suit against consumers to collect debt). How dare those attorneys file complaints and litigate lawsuits. You can bet I’ll have a little more on the topic in a few days.
Posts published in “Ethics”
Ethical Issues in Consumer Financial Services Litigation
An Illinois attorney faces disciplinary discipline charges allegeing the attorney violated the Rules of Professional Conduct when he paid referral fees to a non-lawyer. The attorney was a principal in the “Consumer Credit Defense Network” (CCDN) self-styled as “a network of attorneys across the nation the nation . . . that specialize in the unsecured debt relief, negotiation and litigation arena (sic).” In addition to the referral fees, the Board alleges that the attorney deceived his clients in the nature of services provided. A client would receive a “Debt Reconciliation Program Enrollment Manual” after paying a fee between $2,500 and $4,800. The Manual outlined…