Monday, September 14, 2009

Loan Modification Money Back Guarantee, What If They Can't Pay You Back?

Many potential clients ask whether our firm guarantees certain results or gives a money back guarantee if a loan modification doesn't go through. We do not because we know that we provide the best legal representation we can to find and aggressively pursue the best legal option for our clients. Not everyone can get a loan modification and an attorney cannot force the lender to approve someone.

I was quite shocked to hear that a law firm in San Diego that offered a money back guarantee sent its clients a notice that they are now insolvent. The Alliance Law Center in San Diego sent letters to existing clients and posted the letter on their website:

So now people who paid thousands of dollars with a "money back guarantee" are being told that there is no money to even work on their case, much less give a refund. Never mind the contractual issues of their obligation to give the refund, what about their ethical duty as a licensed California attorney. Those fees were not earned and you cannot just close up shop and tell people to arrange to get their file back or hire another attorney.

Anyone who has been in this situation should contact the State Bar of California.

Chris Barsness, Esq.

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