IRVINE, CA (AttorneyNewswire.com) — June 11, 2010 — California law strictly forbids attorneys from splitting legal fees with or paying referral fees to loan modification consultants. Many homeowners facing foreclosure that are drawn in to loan modification companies claiming to have attorneys on staff usually have very little contact with the attorney who should be handling their case. Loan modification consultants, who are not attorneys, do most of the work involved with the business and usually use the status of the attorney to attract clients. The problem is that these consultants and the cases they attract often outnumber the number of attorneys on staff, which means the client isn’t getting the full service they pay for. The State of California made it illegal for attorneys to split attorney fees or pay referral fees with non-attorneys to avoid this problem, but there are still companies that attempt to operate outside the law in order to earn a quick buck.
Timothy McFarlin, of Irvine based law firm McFarlin & Geurts, explains the difference between a law firm and a loan modification company with an attorney on staff:
“A law firm is an established and highly regulated business dedicated solely to the practice of law. When a person hires a law firm, they will be paired with an attorney that will usually stay their attorney for the duration of their case. A legitimate law firm will not cloak their attorneys behind ‘consultants’ or ‘advisors’, which is common practice with several loan modification companies. When a person has a question for their attorney, they should be able to speak directly to their attorney, not to a consultant. Loan modification companies cheat their clients by making them think an attorney is personally handling their case, when in reality the attorney will have little to no knowledge of each individual case and will mostly be used to sign or review legal documents.
McFarlin advises individuals facing foreclosure to hire a standalone law firm staffed mainly by attorneys, not a company staffed mainly by “consultants” with a handful of attorneys on staff. This type of company creates an environment that is not conducive to offering distressed homeowners the one on one legal advice and attention they deserve.
About McFarlin & Geurts:
McFarlin & Geurts LLP is a full service law firm representing both businesses and consumers in California and throughout the United States. McFarlin & Geurts attorneys possess a keen sense of the law and markets, along with an astute business background that is invaluable in bankruptcy and business litigation. The McFarlin & Geurts team includes five leading attorneys and supporting staff to assure clients that their needs are placed at the forefront of any engagement. Legal representation and counseling is critical in our complex modern world, and McFarlin & Geurts is driven by a desire for excellence and commitment to provide quality, personalized service with integrity.
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