How To Select A Collection Attorney

For the feature column this issue I sought the advice of an expert. What should you look for when selecting an attorney in a last ditch effort to collect your old accounts? I wasn’t sure myself so I asked Jonathan Birk of Attorney’s National Clearing House Co. to provide some advice. I hope you learn something here, I know I sure did.

Selecting an attorney is a serious undertaking, and should never be taken lightly. I come from the old school when attorneys did not advertise on TV, or on the back cover of your local telephone directory. Attorneys were closely monitored, and were only permitted to advertise through sources carefully reviewed and approved by the American Bar Association. Now it seems that the attorney selected most often is the one who runs the loudest and most frequent TV spots, or places the largest ads. In addition, anyone with a computer and Internet connection can select from a plethora of attorney-related advertising and websites. Some are very good, but you do need to be careful.

If an individual or company has exhausted all reasonable efforts toward collection of a debt, seeking legal action can often be the last best chance at recovery. Yes, you can do it on your own; but there are several steps that one should follow.

1- Contact the attorney, and obtain information that assures you that the firm is well versed with collection-related matters. Be sure that you have an honest to goodness collection attorney, and not a general practice attorney who will take anything that you will throw at him/her.

2- Confirm that the attorney will handle your claim. Many attorneys place restrictions on the size of the collection (some will accept nothing under $5,000 for example). Further confirm that he/she will service claims in the locale of your debtor. While attorneys like to say that they will handle the entire state, when push comes to shove, your debtor is outside their regular practice area. Finally, you need to verify that there is not conflict of interest. (i.e. the attorney or someone within the firm may already represent your debtor).

3- Obtain information on clients who are satisfied with the attorney’s work. Then, contact those individuals/companies and obtain their feedback.

4- Contact the state bar association where the attorney is located, and be sure he/she is in good standing.

5- Obtain proof of current malpractice insurance. See if the attorney provides any other bonds or guarantees.

6- Get a firm lock on rates. Your collection matter can be handled on either an hourly or contingency fee basis. You and the attorney must make this decision depending upon the size of the account(s), and how complicated they appear to be. An initial demand letter from an attorney can work; however, you need to be prepared for the possibility of more formal action to collect your debt. Similarly, you should get a feeling for miscellaneous fees such as court costs.

7- Expect regular communications from your attorney. You need to receive scheduled status reports. If communications slow or come to a halt you need to be prepared to contact the attorney to obtain the requisite information.

Fortunately, there are several reputable services available that will simplify the process for you. Better yet, those attorney services specializing in collection attorneys are available to you FREE-OF-CHARGE. A few have been in the industry for over 100 years. You can contact these companies, and they will provide you with names of reputable collection firms in your debtor’s area. Most publish desktop referral directories that are updated regularly, and many have companion websites. You still need to contact the attorney and make fee arrangements. However, the background research has been taken care of for you. Some of the referral companies carry $1,000,000 fidelity bonds on claims properly forwarded to their attorneys. Additionally, if you encounter any difficulties in dealing with the attorneys, these companies will step in and play middleman in order to resolve any problems to your satisfaction.

The common disclaimer, “The hiring of an attorney is an important decision that should not be based solely upon advertisements” is true whether or you do the work yourself or utilize the services of a collection attorney referral organization. If you do it yourself, you’re obviously on your own. If you engage a reputable referral service, they will take care of the majority of the legwork for you, and will be there for you should the need arise. Naturally, those that are “bonded” provide you with an added sense of security. Sometimes the best things in life are FREE!

Jonathan A. Birk, Vice-President of Attorneys’ National Clearing House Co., is the fourth-generation of Birks to be involved with the company since its inception by his great-grandfather in 1895. Attorneys’ National publishes the Clearing House Quarterly (CHQ Law List). CHQ is the world’s senior, bonded source for creditors’ rights counsel who specialize in the areas of collection and bankruptcy law. Contact Jonathan for additional information and a complimentary copy of CHQ. Contact details are email: jonbirk@agencycollect.com, web: www.agencycollect.com. Phone: 800/231-6736.