The verdict in a recent court case has delivered another victory to assist New York consumers defending debt collection efforts in the state. The court has refused to prevent non-lawyers from the New York-based nonprofit Upsolve from offering legal advice to help consumers defend debt collection lawsuits.
This goes against well-settled rules relating to legal advice that only a lawyer can dispel legal advice. New York has held fast to the rule, admonishing even non-practicing, disbarred, and temporarily disbarred lawyers from offering legal advice. It is unethical for a lawyer to stand in the wings and offer legal advice to a litigant representing themselves. Lawyers cannot orchestrate the prosecution or defense of such cases. Even the NY Attorney General’s office holds that while it will do its best to help a consumer, it cannot dispense legal advice.
If you’ve been following our blog or the news, then you likely are familiar with New York’s push for consumer fairness. The state has shortened the statute of limitations to three years, required documents attached to pleadings, and more.
But to allow non-lawyers to offer legal advice? The concern in the state is that sometimes when consumers are sued judgments are wrongly entered for invalid debts. It could be that the monies were not owed, the debt was paid, the consumer never received the summons and complaint, or could not afford a lawyer, and just let it go.
The result of letting it go led to default judgments. Although some of these default judgments were valid, many were not.
The nonprofit Upsolve assists consumers by offering advice that can help consumers defend debt collection cases.
The site makes it quite clear that the advice is not intended as legal advice. Rather, as Judge Paul A. Crotty, US District Judge explains, “Plaintiffs want to help those New Yorkers fill out checkboxes on a one-page answer form provided by the State, in the hopes that more people will avoid defaulting outright in such actions”
The disclaimer on Upsolve’s website reads:
By continuing, I understand that Upsolve is not a law firm or a substitute for an attorney or law firm and that by using Upsolve, I do not enter any form of attorney-client relationship with Upsolve. Upsolve provides an online web app. I understand that I am not allowed to ask for or provide legal advice and that no communication on this website should be considered legal advice…
So, what does this mean for creditors looking to collect consumer debt?
Upsolve won’t be the only organization to offer advice to consumers. If you do business in New York, make sure you have all of your documentation in order. You will need to support your claim with the appropriate documentation within a timely matter to prove the debt is owed at the time of filing the summons and complaint. Gone are the days when you can demand money in a summons without evidence of the debt.
If you have a debt collection matter you need assistance with, contact Frank, Frank, Goldstein and Nager.
