Money for Nothin’

Okay, I watch a lot of television. In the morning before work, I watch a sports news channel while I drink my coffee and eat my cereal. In the evening, if there’s a good movie on cable, I’m there, but I’ll watch a sporting event if it interests me. So, I’m a sports junkie. Sue me! But while I’m in front of the screen, I’m bombarded with ads for, among other things, lawyers, online legal document preparation companies, credit card workout companies, IRS workout services and mortgage modification offers.

The rules of this article writing game do not allow me to name any names, but if you are watching the same sports content that I am, you are seeing the same ads. Which brings me to this month’s rant. Why can’t the Pittsburgh Pirates put a contending baseball team on the field? But, I digress.

Advertisements for attorneys have taken a new turn. Now, you will see the “disease-of-the-month” advertised, and not to diminish the pain and suffering of the people who suffer from those peculiarly named ailments, but do they really need attorneys from out-of-state to represent them? I suggest that there are many lawyers with valid Pennsylvania licenses who can handle these cases. In fact, one of our most active local advertising attorneys has just begun such a campaign. Why go out-of-state when we have solid legal talent right here at home? An excellent point, and well worth your consideration.

Speaking of out-of-state, what about the California lawyer who represented O.J. Simpson who advertises a company to fill out legal forms for you, like incorporation forms, limited liability forms or powers of attorney and wills? Why would you pay money to a California-based company that has no lawyers licensed to practice law in our state to do legal work for you? That doesn’t even sound legal, and some state attorney generals are doing something about it by filing suits against this company for the unlicensed practice of law. Maybe our state will sue them, or perhaps it already has. The forms company is going to have a hard time defending itself against such a charge. And what recourse do our citizens have for a mistake? They cannot complain to the state bar association because that company is not governed by our laws.

I have read over a few credit card workout companies’ fee agreements, and the harsh reality is that, in most cases, the company gets paid its entire fee before the consumer gets any relief from the credit card. The first few months of payments go to the company, often as much as $3,500 or more, before the company even contacts the credit card company. I have done some of this workout settlement business, and take my word for it, you have to have the stomach for it because the collectors are brutal. However, if you have some moxie, whatever that is, you can do this yourself by calling the company, asking to speak to someone in collections, and making an offer to compromise your debt.

The same holds true when dealing with the Internal Revenue Service. Oftentimes, the IRS will agree to an offer and compromise that results in the penalty and interest being reduced or eliminated just to collect the tax bill. When you see or hear those ads that claim that the taxpayer only paid a fraction of the entire claim, that’s why. The IRS is primarily interested in collecting the actual tax due, and is willing to discuss the penalty and interest.

The mortgage modification companies are often just like the credit card workout companies, which collect all of their fees upfront. You can take the initiative with your mortgage company and call them yourself to request some type of modification. The entire mortgage system has changed in just the past few years, and now they are far more willing to listen to your situation and try to work out a mutually beneficial arrangement with you than to have a loan go into default. A mortgage foreclosure is not good for the lender any more than it’s good for the borrower, so both sides should be willing to negotiate.

Your Better Business Bureau is an excellent source of information for any of these companies that you might consider engaging. And many local attorneys will assist you by agreeing to review the company’s agreement or services, and often for no charge or a small initial consultation fee. If you find yourself in need of these ‘workout’ services, you can call around to law offices or call your local bar association and ask to speak with the Lawyer Referral service director. There is help available.

Christopher M. Abernethy has been practicing law in Hampton Township since 1976. He focuses on elder law, which includes wills, trusts, powers of attorney, living wills and probate matters. He also is proficient in all aspects of real estate law and business law. He is a member of the National Association of Elder Law Attorneys and the AARP Legal Services Network. He can be reached at 412-486-6624 or by email at cabernethy@aaylaw.com.