A recent blog addressed many issues associated with Suing Clients to Collect Unpaid Legal Fees. A few law firms seem to think that it is not as bad if they turn the accounts over to a 3rd party to collect. Attorney Malpractice Insurance Carriers treat these suits the same as the firm had sue the client directly.
The outcomes both good and bad are the same as the previous blog on Suing Client to Collect Unpaid Legal Fees. It is generally a bad idea. The firm also opens themselves up to Fair Debt Collections Practices Act, because they now have a 3rd party collecting. Law Firms in addition to all of the prior cautions need to make sure the entity that is doing the collections for them does not violate Fair Debt Collection requirements. If so the law firm as well as the collecting entity could now be part of a different set of malpractice claims.