How Much Fixing Your Credit Will Cost & How We Get Paid

As your prospective law firm, we feel that is vitally important to be completely candid with you. While we do not charge you for our services, we do charge our fees and costs to the defendants. Sometimes, our clients get confused about the division of funds in these cases.

We want to disclose, as clearly as possible, what our fees and costs are and how the division of funds works. Like our Fee Agreement says, we want no surprises.

How Much Is “Free” Going to Cost Me?

Under the law, we can and do charge our fees and costs to the Defendants that are reporting incorrect negative information about you. We also charge our fees and costs to the Defendants that harass you in connection with collecting debts. Our services are not going to cost you anything.

Objectives of Our Lawsuits for You

The objective of the Fair Credit Reporting Act (“FCRA” which is the statute that we use to get your credit report fixed), is to fix your credit, provide you with damages and an attorney at no cost to you. Similarly, the objective of the Fair Debt Collection Practices Act (“FDCPA”) is the same. Since these laws provide for nominal damages of up to $1,000, no lawyer is going to take such a case on a contingency basis, no one is going to hire a lawyer on an hourly basis without such a fee shifting provision.

The Majority of Our Cases Involve Nominal Damages – How to Tell Which Kind You Have

The overwhelming majority of cases involve “nominal damages.” These are damages to right a wrong and typically are no greater than $1,000. Chances are that your case is also a nominal damages case. If it is, read on. If your case is an actual damages case, then you can expect more than nominal damages. Either way, we will call you and discuss your damages before assessing the value of your case. We will also send you a sheet called “My Impression of Your Case” (hyperlink to a sample page) that will note whether you have a nominal damages case or an actual damages case. From there, we will agree as to the financial objectives of your case. If we do agree, we will proceed with representing you. If we cannot agree, then you will be better served with another law firm.

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Fees We Charge to the Defendants

Free Credit Lawyers Truth About Pricing Michigan

We Reimburse Ourselves for Our out of Pocket Costs

When we settle with a defendant, we typically settle for around $5,000 each. Sometimes more and sometimes, less. When we have settled with the last defendant in your case (many times there is more than 1 defendant), and collect that last check, your “settlement pot” is established. From your settlement pot, we reimburse ourselves for our out of pocket costs such as filing fees ($250 to $400 per case depending on where we file it) and service of process (typically $25 per defendant unless we have to pay to have the defendant personally served, then its more). We will also reimburse ourselves for the cost of any depositions, travel and parking costs.

We Also Take Our Fees from Any Settlement

Our fees, historically, have averaged around $4,000 or so, per defendant. We take these fees from the settlement pot at the end of the case. Our fee structure is:

Attorneys $375 per hour
Paralegals $160 per hour
Clerical staff $120 per hour

We keep track of our time and deduct these fees at the end of the case. We use a real-time system, in the cloud, for keeping track of our costs and our fees. Any time you want an accounting of our fees and costs, just ask. We can get one to you, pronto!

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Here Is Where the Potential Controversy Happens

After we take our costs and fees from the settlement pot, the rest is yours. As tantalizing as this sounds, in reality, our services and costs usually eat up most of the money. Frequently, we reduce our fees and costs to make sure that you get $1,000 in your case.

In cases where there are multiple defendants and settlements, people see a large dollar volume and want more of it than the damages that they are entitled to. This is why we are crystal clear in our Assessment of your Damages page at the beginning of our representation with you. We make clear what damages you can reasonably expect from your case so we see eye to eye on the objectives of our representation of you.

Don’t Confuse the Lawsuits We Bring with Contingency Lawsuits

The lawsuits that we bring on your behalf are not contingency cases. The attorneys’ fees are not determined by a percentage of what we collect. Rather, our fees and costs are shifted to the Defendants to pay which is why we track our time and expenses.

The lawsuits that we file to clean up your credit report or to stop debt collection harassment are usually for very nominal damages, usually $1,000 and to clean up of your credit report. If we can get you more, we are happy to do so, but it’s not usually something that you can count on.

If You Have a Nominal Damages Case, Can You Get More Than $1,000 for My Case?

Possibly, but not likely. There are times when our fees and costs are less than what the Defendant pays to settle your case. Of course, we will not know what our fees are until after we have settled with the last defendant. Any money left over after our fees and costs belongs to you. Just remember, that the overarching goal of these cases is to get your credit report clean or to stop a debt collector from harassing you, and provide you with a free credit repair attorney.

Setting and Agreeing to Expectations at the Beginning of the Case Is Key to a Successful Relationship

We want to be your lawyer now, and in the future or any credit or collection related issues you may have. We know that trust is a key component to any Attorney/Client relationship which is why we want to make the financial objectives and machinations as clear to you as possible.

If you have any questions or issues about your case, call or email me, Attorney Gary Nitzkin at or (888) 293-2882.

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