Law Suit Filed To Help Regular Folks Obtain Legal Guidance Against Debt Buyers Like Portfolio Recovery Associates, LLC

(Cut and pasted a press release. Sorry the formatting is not right.)

Landmark First Amendment Lawsuit Brought in
New York Challenges Ban on Free Legal Advice

National Nonprofit and New York Pastor bring case against New York
State to challenge unjust and unconstitutional policies that stop
low-income New Yorkers from getting free legal advice to access their

rights.

With COVID-related medical debt mounting, debt and eviction
moratoriums expiring, and student loan repayments restarting in
2022, new lawsuit aims to expand access to legal advice for people

subject to debt collection lawsuits.

New York, New York – Today, Upsolve, a national nonprofit, and Reverend John Udo-Okon, a
Pastor in the South Bronx, filed a First Amendment lawsuit (see full case) in federal court
(SDNY) against New York State to challenge laws that stop low-income New Yorkers from
getting free, safe, and accountable legal advice in debt collection lawsuits. Over 70 million
Americans have debt in collections. Each year, about 4 million of these Americans are sued for
their debt, often for debt that they don’t actually owe or for the wrong amounts. Such actions
commonly include subprime auto-loans, medical debts, or debt bought by third parties. Over
90% of Americans sued for their debt receive no legal representation. The vast majority of
low-income Americans in debt collection lawsuits cannot afford legal fees and over 70% lose by
default, where the court automatically rules against them without considering the underlying
facts at all. It is currently illegal to receive free, vetted, routine legal advice from a trained
social worker, patient advocate, pastor, or any other professional who is not a lawyer.

Upsolve is suing to change that.

Three additional New Yorkers, Liz Jurado, Chris Lepre, and William Evertson, are participating
in the case to represent the millions of Americans each year whose lives are upended because
they cannot afford legal fees.

Liz Jurado was sued for $12,000 by her anesthesiologist for a surprise medical bill she received
after a routine epidural in childbirth. Christopher Lepre, a navy veteran, was unknowingly sold a
broken car, financed with a high-interest loan from subprime auto-lender Credit Acceptance, and

then sued by Credit Acceptance for over $15,000 – even though he gave the car back to the
dealer within three months. William Evertson, a Brooklyn-based social worker, was sued by
large third-party debt buyer Cavalry for a debt that was never his.

Jurado, Lepre, and Evertson all could not afford legal fees to fight back when they were
sued. And it was against the law for each of them to choose to receive free, routine legal advice
from a trained social worker, patient advocate, or any other professional who was not a lawyer.

Each of them automatically lost their case without the court considering any of the facts. Jurado
and Evertson ended up filing bankruptcy. Lepre had his wages garnished and had to borrow
from his 401(k) to make rent.

In America, you’re only guaranteed a free lawyer in criminal cases, not the vast majority of civil
cases, which include debt collection lawsuits. And there aren’t close to enough free
lawyers—especially in light of the educational cost required—to meet the demand of every
single person who needs legal help. Yet every state in America has laws that make it illegal for
low-income people to get free, safe, routine legal advice from trained professionals who aren’t
lawyers.

Upsolve CEO and co-founder, Rohan Pavuluri, said, “We believe that this is the kind of case
all Americans can get behind. We don’t have equal rights under the law. What we have is equal
rights if you can afford a lawyer. This is one of the fundamental and urgent injustices of our
time.”

Reverend John Udo-Okon, a co-plaintiff with Upsolve, already provides social services to some
of the lowest income zip codes in New York City. Rev. Udo-Okon wants to provide legal advice
to those in his community who have been sued for their debt, but it’s illegal for him to do so.
Reverend Udo-Okon said, “Members of my community are shut out from ways to vindicate
their own rights, and are left with what feels to them like an oppressive justice system stacked
against them.”

In response to Upsolve’s lawsuit, NAACP General Counsel, Janette Wallace, said, “It is
vitally important that low-income individuals get the help they need when trying to respond to
debt collection actions. Black Americans are more likely to face these actions, and they’re more
likely to have to do so without being able to call on a lawyer. The rules surrounding the practice
of law should make it easier, not harder, to redress this problem by ensuring access to high
quality legal help for those who need it.”

The lawsuit involves a new initiative Upsolve is launching, the American Justice Movement, to
empower low-income families to get free legal advice from professionals in their communities
who are not lawyers, called Justice Advocates. The American Justice Movement is launching
with a focus on debt collection lawsuits in New York. Justice Advocates include clergy members,
social workers, patient advocates, and other frontline professionals.

The downstream consequences of losing a debt collection lawsuit can include hunger,
homelessness, poverty, and, in some cases, even jail time, which also come at a cost to our
whole society. This problem is urgent in 2022, as experts predict an onslaught of debt collection
activity.

New York’s policies making it illegal to get free legal, safe, and accountable advice are
unconstitutional given the protections enshrined in the First Amendment. Upsolve is
fighting to protect rights the Constitution already guarantees the Americans most in need – like
the challengers in Miranda v. Arizona and Gideon v. Wainwright.

In response to the filing, Senior Attorney at the Institute for Justice Robert McNamara
said, “Upsolve’s lawsuit matters to millions of people nationwide who need basic legal advice
and can’t get it. The only thing laws like New York’s achieve is ensuring that ordinary people
who most need help can’t get practical advice from people who are willing to give it.”

These policies restrict the supply of help available, perpetuate the imbalance of our justice
system towards those who can afford legal fees, and guarantee that we’ll never have equal
rights under the law.

About Upsolve
Upsolve is a 501(c)(3) nonprofit, based in NYC, with the mission of helping Americans access
their civil legal rights for free and achieve economic mobility, using technology, education,
community, and advocacy. Upsolve’s first project, an online web application to help families file
bankruptcy on their own for free, has relieved over $400M in debt for families facing medical
bills and other financial shocks. Upsolve also provides free financial and legal education that
reaches about 2 million individuals per year. Upsolve funders include Jack Dorsey, the Hewlett
Foundation, Emergent Ventures at the Mercatus Center, Scott & Cyan Banister, Eric & Wendy
Schmidt, Jim Breyer, Vinod Khosla, Chris & Crystal Sacca, the Robin Hood Foundation, and Y
Combinator. In 2020, TIME named Upsolve one of the Best Inventions of the Year. Upsolve
launched the American Justice Movement in 2022 to empower low-income families to get free,
safe, and accountable legal advice from trained frontline professionals.

Additional Resources Links are given on the American Justice movement website
● Website: AmericanJusticeMovement.org
● See Full Case (Filed Jan 25, 2022)
● Press Kit Images
● We Need a New Civil Right (CNN Opinion, Joe Kennedy III & Rohan Pavuluri)
● Civil Justice for All – Recommendation #4 (American Academy of Arts & Sciences)
● Give People the Law (Democracy Journal, Vivek Maru)
● Legal Advice from Nonlawyers (Stanford Journal of Civil Rights & Civil Liberties,
Rebecca Sandefur)
● Unauthorized Practice Of Law’ Rules Promote Racial Injustice (Law360, Rohan Pavuluri)