Should I Hire A Lawyer to Sue My Creditor?

Oh boy, this is a tough one.  I’m not a lawyer and I don’t play one on TV.  In fact, it’s illegal to practice law without a license.  At least that’s what I’ve learned from movies.  So, the question about whether or not you should hire a lawyer to sue your creditor is a hard one to answer because, well, I’m not qualified to answer it.

I can, however, give you my two cents based on the 100+ cases where I’ve served as an expert witness in credit damage, FCRA, FDCPA and credit reporting cases. My experience tells me that you can act as your own attorney, but that it’s a pretty bad idea.  In fact, the ONLY time I’ve ever lost a case as an expert was when the plaintiff decided to be his own lawyer, sued a bank and tried to limp his way through the process.

Consumers can certainly sue creditors on their own if they like.  This is called “pro se.” However, they’ll get better traction and be taken more seriously if they’d get a real attorney. If they have a case they’d probably be able to find a one to take it on contingency here http://naca.net/

They can certainly proceed with their suit but the bottom line is always whether or not the bank did something illegal, like breaching a contract or providing incorrect info to a credit bureau and then refusing to correct it. That’s why they probably need a legit attorney. He/she will be able to tell them if they’re wasting their time or if they really have a case. No lawyer will take a contingency based case if he/she thinks it’s a dud.

And, if you want to hire a credit expert witness, like me, they’ll probably require a larger retainer up front if you’re pro se.  Why?  It’s hard to collect unpaid expert witness fees from a consumer.  In fact, I’ve started requiring a 100% larger retainer if my client is a consumer rather than a law firm.

Credit Reporting Expert, John Ulzheimer, is the President of Consumer Education at SmartCredit.com, the credit blogger for Mint.com, and a Contributor for the National Foundation for Credit Counseling.  He is an expert on credit reporting, credit scoring and identity theft. Formerly of FICO, Equifax and Credit.com, John is the only recognized credit expert who actually comes from the credit industry.  Follow him on Twitter here.