Questioner: KatiaSubject: Law Firm Licensing RequirementsQuestion: I
have a case with a debt collection law firm. The law firm first acted
as a collection agency by sending out a dunning letter and then
proceeded to file suit after validating. I keep reading according to my
state’s laws and Federal Law that this firm is acting as a collection
agency within the law firm and according to my state’s law, the firm
must be licensed as a collection agency. My lawyer, however, says I
should settle for the full claim (including all fees). If this firm is
supposed to be licensed as a collection agency, shouldn’t they be
unable to collect on this account since they are not licensed?Answer:
That is a really dumb lawyer you have there. Be that as it may, you
need to check with your state consumer protection division but in most
states lawyers are specifically excluded from such license
requirements. Of course, there is a catch to that because if the law
firm is not licensed to practice law in your state then I tend to think
they would have to be licensed in your state. More importantly, have
they complied with all aspects of FDCPA? Here is a starter list of 15
things that debt collectors cannot
do.
