HLS 12RS-1293 ORIGINAL
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2012
HOUSE BILL NO. 782
BY REPRESENTATIVE CONNICK
CONTRACTS: Provides with respect to certain contracts for the collection and settlement
of debts as the practice of law
AN ACT1
To amend and reenact R.S. 37:212(A)(introductory paragraph), (1), and (2)(a) and (b) and2
to enact R.S. 37:212(A)(2)(e), (f), and (g) and (3) and R.S. 37:213(A)(8), relative to3
contracts for collecting or settling certain debts; to provide relative to definitions; to4
provide that certain activities related to debt settlement or collection shall be5
considered the practice of law; and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 37:212(A)(introductory paragraph), (1), and (2)(a) and (b) are hereby8
amended and reenacted and R.S. 37:212(A)(2)(e), (f), and (g) and (3) and R.S. 37:213(A)(8)9
are hereby enacted to read as follows: 10
§212. "Practice of law" defined11
A. The practice of law means and includes all of the following:12
(1) In a representative capacity, the appearance as an advocate, or the13
drawing of papers, pleadings, or documents, or the performance of any act in14
connection with pending or prospective proceedings before any court of record in15
this state; or.16
(2) For a consideration, reward, contingency fee, referral fee, commission,17
or any other pecuniary benefit, present or anticipated, however phrased or styled,18
whether direct or indirect;, through an intermediary or by means of a fee-splitting19
agreement or other arrangement for monetary compensation:20 HLS 12RS-1293 ORIGINAL
HB NO. 782
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(a) The advising or counseling of another as to secular law;, consumer debt1
settlement, consumer debt avoidance, or consumer debt defense.2
(b) In behalf of another, the drawing or procuring, or the assisting in the3
drawing or procuring of a court pleading, paper, document, or instrument affecting4
or relating to secular rights;, consumer debt settlement, consumer debt avoidance,5
or consumer debt defense.6
* * *7
(e) Advising a debtor who is a Louisiana resident or domiciliary to do any8
of the following:9
(i) To ignore, delay payment of, or not to pay at all, a legal debt or charge10
or any portion of the legal debt or charge.11
(ii) To file pleadings pro se or in proper person in any pending or prospective12
litigation or lawsuit.13
(iii) That a debt is illegal, unenforceable in a court of law, extinguished by14
a prescriptive or peremptive period, uncollectible, or subject to modification without15
the consent of the creditor.16
(iv) That he is subject to arrest or prosecution for the nonpayment of a civil17
court judgment.18
(f) After a lawsuit has been filed to foreclose a mortgage or to seize or19
recognize alien on immovable property, advising a defendant who is a Louisiana20
resident or domiciliary of his options and alternatives for responding to the lawsuit21
or seizure, or otherwise dealing with or disposing of a lawsuit.22
(g) After a lawsuit has been filed to collect a consumer debt, preparing for23
or furnishing to, directly or indirectly, any pro se or in proper person pleadings in24
connection with the lawsuit.25
(3) For a profit or for any direct or indirect financial remuneration or26
consideration, to operate any service or program represented, directly or by27
implication, to renegotiate, settle, or in any way alter the terms of payment or other28
terms of the debt between a person and one or more unsecured creditors or debt29 HLS 12RS-1293 ORIGINAL
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collectors, including but not limited to a reduction in the balance, interest rate, or1
fees owed by a person to an unsecured creditor or debt collector.2
* * *3
§213. Persons, professional associations, professional corporations, and limited4
liability companies entitled to practice law; penalty for unlawful practice5
A. No natural person, who has not first been duly and regularly licensed and6
admitted to practice law by the supreme court of this state, no corporation or7
voluntary association except a professional law corporation organized pursuant to8
Chapter 8 of Title 12 of the Revised Statutes, and no partnership or limited liability9
company except one formed for the practice of law and composed of such natural10
persons, corporations, voluntary associations, or limited liability companies, all of11
whom are duly and regularly licensed and admitted to the practice of law, shall:12
* * *13
(8) Operate any service or program represented, directly or by implication,14
to renegotiate, settle, or in any way alter the terms of payment or other terms of the15
debt between a person and one or more unsecured creditors or debt collectors,16
including but not limited to a reduction in the balance, interest rate, or fees owed by17
a person to an unsecured creditor or debt collector.18
* * *19
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Connick HB No. 782
Abstract: Provides that conducting business under certain types of contracts, such as
contingency fee, referral fee, commission, and fee-splitting contracts, in order to
collect or settle consumer debts shall be considered practicing law.
Present law provides an extensive definition of the "practice of law" which provides, in part,
that the practice of law includes appearing in a representative capacity as an advocate, or the
drawing of papers, pleadings, or documents, or the performance of any act in connection
with pending or prospective proceedings before any court of record in this state, and
advising or counseling of another as to secular law for consideration, reward, or pecuniary
benefit. HLS 12RS-1293 ORIGINAL
HB NO. 782
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are additions.
Proposed law retains present law but also includes those activities listed in present law which
are done pursuant to certain types of contracts, such as contingency fee, referral fee,
commission, and fee-splitting contracts.
Present law provides, in part, that no natural person, who has not first been admitted to
practice law by the supreme court of this state, no corporation, no partnership, and no limited
liability company shall practice law, furnish attorneys to render legal services, or render or
furnish legal services or advice.
Proposed law provides that no natural person, who has not first been admitted to practice law
by the supreme court of this state, no corporation, no partnership, and no limited liability
company shall operate any service or program represented, directly or by implication, to
renegotiate, settle, or in any way alter the terms of payment or other terms of the debt
between a person and one or more unsecured creditors or debt collectors.
(Amends R.S. 37:212(A)(intro. para.), (1), and (2)(a) and (b); Adds R.S. 37:212(A)(2)(e),
(f), and (g) and (3) and 213(A)(8))