Consumer Debt Defense and Education Clinics

The National Consumer Law Center reports that nearly all American households behind on their bills "were current until they faced a financial catastrophe," such as unemployment or illness. In addition, the current economic downturn disproportionately affects low-income individuals and families who are often targets of predatory behavior by credit card companies.

In the past two years, Volunteer Legal Services Program's Consumer Clinics have seen a 96% increase in the number of calls regarding bankruptcy or collection defense matters. Many of the callers experience severe anxiety and stress due to harassment by debt collectors. Clients frequently stop answering their phones and opening mail out of debilitating fear. Such isolation exacerbates clients' difficulty finding employment, accessing social services or staying connected with friends and family.

VLSP Consumer Clinic volunteers have been able to have a tremendous impact on clients' lives by helping clients address their debt issues and stop debt collection harassment. Recently, a Consumer Clinic client wrote "Thank you so very much for your help. . . . Your services are invaluable and unfortunately, for so many in the current crisis, so very necessary."

Due to the nature of debt buying practices, creditors often sue the wrong individuals. Creditors also sue cardholders on old debts that are outside the statute of limitations. Volunteer attorneys have been successful in helping clients identify these affirmative defenses and defeat collection actions.

In response to dramatically increased demand, VLSP will launch a new Consumer Debt Defense and Education Clinic in March 2009. At the clinic, clients will receive information about debtor/creditor rights and responsibilities. Additionally, clients will be able to get assistance with in pro per litigation matters. The types of litigation assistance may include helping clients draft answers, fee waivers, claims of exemption and responses to discovery.

Volunteers will also advise clients of their rights under the Fair Debt Collection Practices Act ("FDCPA") and help clients write "cease and desist" letters to debt collectors. Clients will have the opportunity to discuss bankruptcy with an experienced attorney.

The new clinic will be staffed by attorneys and law students who have undergone VLSP's mandatory Consumer Defense Training.

For information on volunteering with the Consumer Project, please contact:
Megan Colla
vlsp@sfbar.org
415.782.9000 x 8759

If you are a client, interested in receiving assistance at the Consumer Debt Defense and Education Clinic, please call (415) 989-1616 to see if you qualify.