Can a lawyer be retained by a billing or debt collection company to send demand letters to the debtors of the company's clients?

Plain-English summary

A lawyer sought clarification of the solicitation rule for an arrangement in which the lawyer is retained by a monthly billing and accounts-receivable service to send letters to the debtors of that service's clients. The committee was of the opinion that the arrangement violates RPC 7.3(a), which prohibits solicitation of clients through a third person.

The committee added that the arrangement may violate other ethical rules as well, including but not limited to RPC 5.4, which prohibits fee sharing with non-lawyers.

Currency note

This opinion was issued in 1994, before the Washington State Bar Association's adoption of the 2006 revisions to the Rules of Professional Conduct. Subsequent rule amendments or later opinions may have changed the analysis. Treat this page as historical context, not current guidance. Verify against current rules before relying on any specific rule, deadline, or requirement mentioned here.

Common questions

Q: Can a lawyer take work from a collection service to pursue its clients' debtors?

A: The committee said the described arrangement, where a billing and accounts-receivable service retains the lawyer to send letters to its clients' debtors, violates RPC 7.3(a)'s bar on soliciting clients through a third person.

Q: Does the arrangement raise fee-sharing concerns too?

A: The committee said it may violate other rules as well, including but not limited to RPC 5.4, which prohibits fee sharing with non-lawyers.

Background and rules framework

The opinion applied RPC 7.3(a) (ABA Model Rule 7.3), which restricts solicitation of prospective clients, including solicitation through a third person, and flagged RPC 5.4 (ABA Model Rule 5.4), which prohibits sharing legal fees with non-lawyers. The committee treated the service's role in routing the lawyer to its clients' debtors as third-person solicitation and noted the fee structure could also implicate the non-lawyer fee-sharing bar.

Citations and references

Rules of Professional Conduct:

• ABA Model Rule 7.3 (solicitation of clients); Washington RPC 7.3(a)
• ABA Model Rule 5.4 (professional independence; fee sharing with non-lawyers); Washington RPC 5.4

See also

• WA Ethics Op. 1071: Paid Personal Referral Service Prohibited
• WA Ethics Op. 1211: Fee Splitting With a Service Center
• WA Ethics Op. 1143: Salaried Lawyer Billing Nonprofit Members

Source

• Landing page: https://ao.wsba.org/print.aspx?ID=646

Original opinion text

Reproduced from the official source for research purposes. The linked source is authoritative.

Advisory Opinion: 1565
Year Issued: 1994
RPC(s): RPC 7.3; 5.4
Subject: Third person solicitation; lawyer retained by debt collection company to represent its clients

The Committee reviewed and discussed your request for clarification of the solicitation rule. The Committee was of the opinion that the arrangement you described in which you are retained by a monthly billing and accounts receivable service, to send letters to the debtors of [the debt collection company's] clients is in violation of RPC 7.3(a) which prohibits solicitation of clients through a third person. [The lawyer acts as the lawyer for the debt collection company's clients, and the clients are billed by the company.] The Committee was of the opinion that this arrangement may violate other ethical rules as well, including but not limited to RPC 5.4, prohibiting fee sharing with non-lawyers.