Legal Question in Credit and Debt Law in Pennsylvania
Collection of attorney fees
I had hired an attorney for a divorce. It was a rather lengthy and nasty divorce. My bill was large (over $40,000). I have been making monthly payments over the past years. He now began charging me interest. Is this legal? Do I have any recourse? Thank you.
2 Answers from Attorneys
Re: Collection of attorney fees
You asked about interest on an attorney's bill.
It depends on your agreement with the attorney. Many attorneys will not take a case without being paid in advance, a retainer. If there is a balance at the end of the case then a deficiency is billed to the client or a surplusage is returned.
It is very common for any business to charge interest on money owed on a bill. As a rule, most business provide for a short interest free period (usually 30 or 60 days). The as long as the attorney gave you fair warning then charging interest is a very reasonable business practice.
Language allowing interest and collection fees is built into my agreements for this very reason.
Regards,
Roger
Re: Collection of attorney fees
Your attorney's action is likely controlled by the federal truth in lending act.
Without a review of your written fee agreement it would not be possible to determine if the charges are consistent with the law.
As a side note if your payments are not consistent with the fee agreement, your attorney can bring an action to collect the unpaid balance, that judgment would be public record and incur court costs and interest until satisfied and depending on his written agreement may subject you to additional attorney fees.
Good luck to you and if we can help let us know.