What is the obligation, if any, does our firm have to report an ethical breach to the grievance committee?

To: AssociateFrom: PartnerRe: Default Judgment/ Fair Debt Collection Practices Act/ Unlawful Practice of Law Our client, Thomas Carroway, defaulted on payments on his bank credit card account in June 2015. At the time of his default, the account balance was approximately $21,000. In August 2015, the bank turned the account over to Debtor Services, Inc., a collection agency. In September and again in October, Debtor Services sent letters to Mr. Carroway. Each letter proposed an offer of compromise and a payment plan. Mr. Carroway did not respond to either letter. In December 2015, Debtor Services sent another letter to Mr. Carroway. In this letter, Debtor Services withdrew its offer of compromise, declared its intent to file a lawsuit to collect the full amount of the debt, and threatened to file a lien against Mr. Carroway’s home. Unlike the previous letters, this letter was signed by Andrew Hindenberg, Esq. On January 5, 2016, Debtor Services filed suit against Mr. Carroway. On the face of the summons was the following warning: “If you do not respond to the attached complaint within the applicable time period, a default judgment will be entered against you for the relief demanded in the complaint without any further notice to you.” Our firm hired an investigator to look into the business practices of Debtor Services, Inc. The investigator interviewed the former office manager of the collection agency. The office manager stated that Andrew Hindenberg does no legal work on behalf of Debtor Services. He allows the agency to use his name, letterhead, and signature without actually reviewing the letters or pleadings that bear his signature. It seems to me that a series of federal statutes known as the Fair Debt Collection Practices Act (U.S.C. §§ 1692 et seq.) may provide a defense for Mr. Carroway. Specifically, I need to know whether the threat contained in the December letter and the default without further notice warning on the summons violated the FDCPA. In addition, the business relationship between Debtor Services, Inc., and Mr. Hindenberg raises serious ethical issues. I need to know whether that relationship constitutes the unlawful practice of law on the part of the collection agency and, if so, whether we, as a firm, are obligated to report the nature of this relationship to the grievance committee.Address the following.Are the practices of Debtor Services are permitted under the FDCPA?;May a creditor threaten to file a lien and obtain a default judgment without providing the debtor further notice?; andDoes the relationship between an attorney and a collection agency constitute the unlawful practice of law?What is the obligation, if any, does our firm have to report an ethical breach to the grievance committee?Previous