A disturbing story about a Massachusetts lawyer taking advantage of people facing foreclosure
This is not an upbeat story; but I think it needs to be on here.
The Boston Globe reported this week that the Attorney General’s Office has filed civil charges against Revere lawyer David Zak, charging that he took large fees from homeowners facing foreclosure, and then didn’t perform the work.
Zak has denied the charges, calling them “blatantly unfair,” and hinting that the AG’s office was on a vendetta.
Apparently, protests have broken out in front of Zak’s law office, with protesters, including former clients and housing activists, congregating outside Zak’s Revere office, chanting “Stop David Zak.”
The Globe article mentions one family that paid the attorney $5,600 for a loan modification, only to find the lawyer wanted an additional $4,000 to do a bankruptcy when the modification attempt didn’t work.
One of the thing that is going on here is that loan modification companies are prohibited from charging up-front fees for their services. But law firms aren’t — that’s the basic way they do business in almost all areas besides personal injury. So some lawyers are tempted to use this loophole, and some no doubt try to abuse it as well.
Just so you know, it shouldn’t cost $4,000 for a Massachusetts bankruptcy unless the case involves complex business or real estate issues. If you are getting charged this much, check it out carefully — you may have run into a lawyer fronting for a scam!
Photo by Wendy Maeda, Boston Globe
