FCRA | Legal Engagement with McCarthy Law PLC

FCRA | terms

Fair Credit Reporting Act (FCRA) TERMS AND CONDITIONS




As used in the Agreement, the following capitalized terms have the following meanings:

1.1  “Agreement” means this Attorney Fee Agreement between McCarthy Law and Client.

1.2  “Client” means You.

1.3  “Adverse Party” means your Creditors and all necessary Credit Bureaus.

1.4  “FCRA Claim” means one or more violations of the Fair Credit Reporting Act by an Adverse Party, filed as part of one lawsuit, which violations are identified by McCarthy Law to Client. Client may have multiple FCRA Claims thus resulting in multiple lawsuits.

1.5  “Effective Date” means the first date upon which both McCarthy Law and Client have signed this Agreement, and Client has delivered a copy of Client’s credit report from each of the following credit bureaus: Experian, Equifax, and Transunion.

1.6  “McCarthy Law” means McCarthy Law PLC located at 4250 North Drinkwater Blvd., Suite 320, Scottsdale, AZ 85251.

1.7   “Parties” means McCarthy Law and Client.



2.1  Scope of Representation.  This Agreement for legal services is entered into as of the date shown below between McCarthy Law and Client relating to legal advice, counsel, legal analysis and representation in connection with Client’s FCRA Claims against Adverse Party.

2.2  Condition of Effectiveness.  This Agreement does not take effect, and McCarthy Law has no obligation to provide any services, until Client has accepted the terms and conditions of representation.

2.3 Lawsuits by Client Against Adverse Party.  This representation includes representation up and thru trial, if any.  This Agreement does not involve the filing of any appeals whether Client is or is not the prevailing party.  Neither Client nor McCarthy Law is obligated to reach an agreement with regard to any further legal representation.

Client agrees to pay for all actual out-of-pocket costs incurred on your behalf; provided, that Client may elect to pay costs from monies obtained from Adverse Parties. Typical costs include: filing fees, service of process, depositions, expert witness fees, travel expenses, long-distance telephone calls, outgoing fax, Federal Express, courier services, and delivery charges, photocopying, and online database retrieval charges (Lexis, Westlaw, etc.).  McCarthy Law may elect to cover certain out-of-pocket costs on behalf of Client, but McCarthy Law reserves the right to seek reimbursement from Client. Client agrees to reimburse McCarthy Law for such out-of-pocket costs.  McCarthy Law also will charge administrative fees associated with the set up and closing of Client’s file.

2.4 Term.  The terms of this Agreement shall commence on the Effective Date and continue until termination of this Agreement as provided below.   



3.1 Client Obligations.   The Client will perform the following obligations:

  1. Provide McCarthy Law with all information and documents related to the FCRA Claims;
  2. As an ongoing obligation, Client will promptly provide all information related to the FCRA Claims to McCarthy Law. All information provided by Client must be truthful and accurate.  McCarthy Law is under no obligation to verify information supplied by Client.
  3. Client will forward all correspondence from Adverse Party within five (5) days to McCarthy Law;
  4. Clients will timely respond to all requests, communications or documentation from McCarthy Law or its representatives and will promptly provide McCarthy Law with any change of address or other contact information;
  5. Client shall not independently dispute with any Creditor or Credit Reporting Agency, whether through a 3rd Party or on their own, without the express written authorization of McCarthy Law, throughout the term of the representation.

3.2 McCarthy Law’s Obligations.  In consideration for Client’s obligations, McCarthy Law agrees to use its best efforts to obtain a satisfactory result for Client by providing legal services in connection with claims against Adverse Party in connection with the FCRA Claims on an efficient and cost effective basis.  Client expressly agrees that McCarthy Law makes no specific guarantee regarding the outcome of the case.  McCarthy Law offers its advice based on the information as disclosed by Client and Client agrees that McCarthy Law is not responsible and assumes no liability for changes in the law, changes in Client’s financial situation, and/or facts as revealed after review of documentation that could affect in any way any advice McCarthy Law gives Client.




4.1  Success Fee.  In consideration for services rendered, Client has retained McCarthy Law on an hourly basis, due and payable only as a Success Fee.  This fee is earned on receipt, and will not be deposited into the client trust account. “Success Fee” means the legal fee to be charged to client for the representation described in the Agreement.  The Success Fee is contingent upon receipt of monies from one or more Adverse Parties and is equal to the total hours billed (in quarters of an hour) at the following rates (Senior Attorney $450, Associate Attorney $350, Paralegal $200) to obtain a cash recovery from Adverse Party; provided, however, that in the event that payment of the Success Fee would result in Client receiving less than $1,000 for each FCRA Claim against each Adverse Party, before out-of-pocket costs, as defined in Section 2.3 of this Agreement, are subtracted, the Success Fee shall be reduced to the extent necessary for Client to recover $1,000 for the first FCRA claim resolved against an Adverse Party and an additional $500 from each Adverse Party that is a party to the same FCRA claim thereafter to the extent that all out-of-pocket costs, as defined in Section 2.3 of this Agreement, are first recovered and to the extent that the settlement funds are enough to provide such a recovery for the Client as described.  The Success Fee is due and payable at the time the monies are received from each Adverse Party.  The Success Fee is earned upon receipt and will not be deposited into the client trust account. In the event of Client’s violation of any provision of Section 3.1 of this Agreement, McCarthy Law reserves the right to recover fees and costs for total hours billed, despite recovery for the Client, against all monies received for any and all FCRA Claims filed against any and all Adverse Parties.

4.2  Litigation Costs.   McCarthy Law may require Client to deposit an amount equal to anticipated court costs prior to the time litigation against the Servicer is initiated, but only in the event McCarthy Law does not recommend the Client undertake litigation against the Adverse Party.

4.3  Refund.  If Client terminates the representation before all legal services described in this agreement have been provided, Client may be entitled to a refund of all or part of the Success Fee based on the value of the legal services performed prior to termination.

4.4 Arbitration Of Fee Disputes.  If a dispute arises between the parties regarding legal fees, the parties agree to resolve that dispute through the State Bar’s Fee Arbitration Program.  Either party may initiate fee arbitration by contacting the State Bar’s Fee Arbitration Coordinator at 602-340-7379.


Section 5


 5.1 Right to Reject. To the extent that Client’s claims are valid and based on good facts as determined by McCarthy Law, Client instructs McCarthy Law to reject all offers on behalf of client that would not yield client the minimum “Success Fee” and attorney’s fees earned to date.

5.2  Termination and Severability.  Either party may terminate the representation at any time, subject to McCarthy Law’s obligations under the Rules of Professional Conduct and the approval of the court if the matter is in litigation.  Unless previously terminated, our representation will terminate upon completion of the legal services described in this agreement. Client understands McCarthy Law has no continuing obligation to represent Client unless retained to provide additional advice or services.

The party choosing to terminate the Agreement will document the decision by sending a 30 day written notice to other party.  The termination will occur upon receipt of such notice.  If such termination occurs, the Client shall only be responsible for the fees paid and costs incurred through the date of cancellation.  If any legal action is brought regarding this Agreement, the prevailing party shall be entitled to legal fees and court costs.

5.3  Disclosure and Disclaimers.  Client acknowledges and understands that McCarthy Law would not agree to provide the services in this Agreement absent Client’s full understanding and acceptance of the basis for the work to be performed.

5.4 Arbitration.  In the event of any claim or dispute between Client and McCarthy Law related to the Agreement or related to any performance of any services related to this Agreement, such claim or dispute shall be submitted to binding arbitration upon the request of either party upon the service of that request.  The parties shall initially agree on a single arbitrator to resolve the dispute.  The matter may be arbitrated as mutually agreed upon by the parties.  The arbitration shall be conducted in either the county in which Client resides, or the closest metropolitan county.  Any decision of the arbitrator shall be final and maybe entered into any judgment in any court of competent jurisdiction.  The conduct of the arbitrator shall be subject to the then current rules of arbitration service.  The cost of the arbitration, excluding legal fees, will be split equally or be borne by losing party, as determined by the arbitrator.  The parties shall bear their own legal fees.

5.5  Incorporation and Integration.  This Agreement includes all Exhibits, Appendices, which are attached hereto and incorporated by this reference.  This Agreement and these documents are the complete and exclusive statement of the parties and supersede any proposal, prior oral or written agreement, and any other communication related to this matter.

5.6  Enforceability.  In the event that any portion of this Agreement is determined to be illegal or unenforceable, the determination will not affect the validity or enforceability to the remaining provisions of this Agreement, all of which shall remain in full force and effect.

5.7 No Amendment.  This Agreement may only be modified by subsequent agreement by the parties in an instrument in writing, signed by both McCarthy Law and Client and no waiver of any provision or condition of this Agreement shall be effective or binding unless such waiver be in writing and signed by the party claiming to have such waiver.

5.8 Communications. McCarthy Law encourages email communications in lieu of phone calls for fastest response.  Non-lawyer staff may be directed to communicate with you, if appropriate. McCarthy Law will not communicate confidential information about the representation to third persons, including your family members, unless specifically directed to do so. McCarthy Law will send you copies of all relevant documents and correspondence received so that Client can maintain a complete file of the legal matter.

5.9 Client Files and File Maintenance.  During representation, McCarthy Law will maintain a file relating to Client’s legal matter.  At the conclusion of the representation, McCarthy Law will give Client file to Client. After McCarthy Law gives file to Client, information contained in Client file will no longer be available from McCarthy Law. If McCarthy Law is unable to return Client file to Client at the conclusion of the representation, McCarthy Law will maintain Client file for five years after representation ends. By signing this fee agreement, Client agrees that Client’s file may be destroyed after that five-year period ends.  McCarthy Law maintains records electronically and by use of digital images and does not retain paper copies of documents, unless required by rule or statute.  Client may obtain paper copies of documents in Client file upon request to us, with reasonable notice. By signing this fee agreement, Client consents to McCarthy Law maintaining Client file electronically.



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