111218 SCBEO, ETH 18-06

• Case Date: November 12, 2018
• Court: South Carolina

ETH 18-06 Ethics Advisory Opinion 18-06 South Carolina Bar Ethics Opinion Ethics Advisory Opinion November 12, 2018          The Ethics Advisory Committee renders opinions exclusively to members of the South Carolina Bar concerning ethical issues raised by the inquirer's contemplated conduct not relating to a pending matter. This Committee has no disciplinary authority. Lawyer discipline in South Carolina is administered solely by the South Carolina Supreme Court through its Commission on Lawyer Conduct.          South Carolina Rules of Professional Conduct: 1.7, 1.8, 5.4          Factual Background:          The Ethics Advisory Committee received two inquiries regarding the propriety of associating with a financial brokerage company. The Committee is addressing both inquiries in this opinion because they concern the same legal issue. Lawyer or law firm desires to offer legal services to individuals or parties who are not able to afford the services. The cases are not appropriate for contingent fee contracts. Therefore, the lawyer would associate with a financial brokerage company or other third-party financing vendor. The broker or vendor would apply for financing for the client to pay the attorney’s fee, and, if approved for financing, the client would receive financing completely independently of the lawyer or law firm. The broker or vendor charges an initial setup fee, a monthly technology fee for maintaining the payment web page and an administration fee. The lawyer would also pay the vendor or broker a merchant fee, which would be a percentage of the amount financed for the legal fee. The loan service would be explained to clients as a payment option along with any other options such as credit cards, checks, cash, etc. The proceeds of the loan are paid directly to the potential client by the lender. The client then pays a fee to the lawyer in accordance with the relevant fee agreement. The potential client is not required to hire this particular lawyer or law firm, nor is the potential client required to use the money for legal fees. The lawyer or law firm is not responsible for repayment of the loan, either directly or indirectly. The brokerage company or...