An attorney who specializes in suing credit bureaus and debt collection agencies has been accused by the Michigan Attorney Grievance Commission of misleading individuals by not being upfront about telling them that he takes his fees out of their settlements, even though he promises that those services are free.
The attorney, Gary Nitzkin, even goes as far as to make a promise to his father, on a video on Nitzkin’s website, where he says, “Dad, I will not charge these clients a fee — promise.”
Nitzkin has filed nearly 900 lawsuits against collection agencies, according to data from WebRecon, including 12 this year.
The Michigan Attorney Grievance Commission is the investigative and prosecutorial arm of the Michigan Supreme Court for allegations of attorney misconduct and has jurisdiction over all lawyers licensed to practice law in the state.
Nitzkin is advertising that his services are 100% free, even though he takes his fees out of the settlements and awards from suits he files on behalf of his clients. The complaint accuses Nitzkin induces “clients to use his ‘free’ services, handle a high volume of cases, keep his clients in the dark about his fees, and leave any fee disputes until the end of his matters after (Nitzkin) has already disbursed his fees and costs to himself.”
He has denied all the charges.
The fees Nitzkin charges can take up most, or in one case, all of the money received in a settlement. He insists his services are free because his clients do not pay him out of their own pockets for his work.
In one case, Nitzkin won two $5,000 settlements for a client, but he ultimately billed more than $13,000 for the work, leaving the client with nothing. In another case, Nitzkin took $19,000 out of a $22,000 settlement.
