Lay-away Lawyers....
(PRWEB) August 13, 2000
From CNNFN
Law on order
Companies provide legal services with lay-away plan to bolster access
By Staff Writer Rob Lenihan
August 3, 2000: 6:25 a. m. ET
Yes, when the grief hits the fan, you do have a right to an attorney. But where do you turn if you don't have one?
If you've got money, you probably have an attorney on retainer. If you don't have money, you'll receive a court-appointed lawyer. If you're in the nebulous middle range, you could have some problems.
One option for consumers is to sign up with a prepaid legal plan. Charging from $8 to $25 a month, the plans function similar to health insurance coverage. Clients contribute a certain amount of money every month so they will have legal protection if, and when, they need it.
Alec Schwartz, executive director of the American Prepaid Legal Services Institute, a trade group affiliated with the American Bar Association, said many labor unions use these plans and companies may offer prepaid legal plans as part of a benefits package.
"I think the market for these plans is growing," Schwartz said.
One phone call
Many legal cases are fairly routine, involving little more than reading a contract, drawing up a will, settling a neighbor dispute or handling a traffic ticket. Maybe your old landlord won't return your rent deposit check. Schwartz said you might forget it and chalk the loss up to the price of doing business.
However, if you have a lawyer give that landlord a call, then you're much more likely to get that deposit back. And instead of paying $50 or $100, or more, for this service, you're covered.
Also, many legal plan companies have offices all over the country, Schwartz said, so you can get help if something happens in another state.
Attorneys who participate in the plans see a chance at increasing their client base. Since the plans don't cover every kind of legal situation, attorneys may get additional work from the clients and charge the full rate.
While the API does not endorse any one company, the Institute's Web site lists several group and prepaid legal service plans. Some of the companies include ARAG Group, Hyatt Legal Plans and Lawphone. You can also ask your employer, union, credit union or other organization to see if a plan is available to you.
Justice that one can afford
Wilburn Smith, president of Pre-Paid Legal Services Inc. (PPD: Research, Estimates), said the legal plan holds great appeal to middle-class consumers.
"We like to say around here that if you don't know what your rights are, you really don't have any," Smith said. "On the front of the Supreme Court Building is says 'Equal justice under the law.' That sounds good, but it's really not true. You get as much justice as you can afford."
The Ada, Okla.-based company develops, underwrites and markets legal service plans that provide such benefits as unlimited attorney consultation, will preparation and automobile-related criminal charges. The two most popular family plans cost $16 and $25 per month, respectively. The plans differ in that the more expensive one allows the client more pre-trial hours.
"You can spend a ton of money before you go to trial," Smith said, "and most cases are settled out of court."
Smith said the company reviews attorneys before accepting them into the plan.
"These are not your typical law firms," he said. "Typically, lawyers don't have good bedside manners. We work with them, so you're dealing with lawyers who really care."
Upon becoming a member of the service, clients receive a toll-free number that connects to the provider attorney's law firm in the client's home state.
In September, Pre-Paid Legal Services announced its "Legal Shield" benefit, which granted members round-the-clock, toll-free access to legal representation in the event they are arrested or detained by the police. The service is available for $1 a month as an additional benefit to the Pre-Paid Legal Family Plan.
Harland Stonecipher, who founded the company in 1972, said he developed his business by adhering to the patterns of such entrepreneurs as McDonald's (MCD: Research, Estimates) kingpin Ray Kroc and motivational author Napoleon Hill. He said he got the idea for the company after a car accident that swamped him with large legal bills, even though he wasn't at fault.
