The firm violated the state Professional Services Corporation Act (PSCA) as the professional corporation will be tagged as illegitimate if it provides services other than the ones for which it is included in their service. These firms do not provide service for debt settlement but involve with collection agencies in the collection practice.

The debtor can lodge a complaint and file a case if he finds a law firm violating the PSC Act. And if the professional corporation is not protected by statutory language then it is not liable to invest funds in real estate, stocks and other assets. Professionals are allowed to purchase debt obligation as an investment but will be unable to operate a debt collection business.

If a law firm is found to violate the FDCP Act then it will be penalized under 15 U.S.C. §1692e, that forbids the use of “any false, deceptive, or misleading representations or means in connection with the collection of any debt,” and §1692e(2)(A), that proscribes the collector from adulterating the “legal status of any debt”. If you do not challenge the amount of debt that you have incurred then you might not be liable to take the benefit of the FDCPA provision, §1692f(1) that does not permit the collection of “any amount . . . unless such amount is expressly authorized by the agreement creating the debt or permitted by law.”

The Judge might say that the “debt” is not “merchandised”, therefore the court can apply Consumer Fraud Act (CFA) to this case. While lodging the complaint make sure that you focus on the agreement and not on the content of debt collection. Otherwise the Truth-in-Consumer Contract, Warranty and Notice Act will not be feasible in your case.

FDCPA and PSCA laws are active in America that safeguards the interest of the consumer. So you can take the help of this law to come out of this stressful situation.

Author Bio:
This is a guest post by Kevin Craig who is a financial writer for various finance related Communities. He has helped many indebted people to get out of debt by giving them proper financial advice for debt relief. With his advice many are now living a debt free life. You can get in touch with him at kevin.craig672@gmail.com

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