Late last year, I unfortunately received a letter from some California prosecutors.
They were investigating me personally for criminal “Unauthorized Practice of Law,” which carries up to 1 year in jail for every count (100k+ potential counts!).
This is how it played out:
First, some context:
The US spends $200bn+ a year on legal services, more than any other country. Top lawyers cost $1000+/hr.
To keep the gravy train running, the industry has instituted protectionist measures, including trying to stop churches from giving legal advice!
This is a huge problem for consumer rights because it allows corporations to have a new type of business model: concentrated benefit but spread out harm.
Comcast can charge 20,000,000 people a $10 late fee. They make $200 million, but people can’t afford to fight back over $10!
But software can fight back! Which is the idea behind @donotpay.
Over a few years, we built hundreds of robots to provide information and automate bureaucracy.
Bots to cancel NYT subscriptions, remove racist language from deeds, get refunds from @United, among others
These bots ruffled some feathers with the powers that be in the California Government, who wanted only expensive lawyers to be able to provide information, so they opened up a criminal investigation.
Although I knew we did nothing wrong, I needed to hire a lawyer to respond
Fortunately I got introduced to the best lawyer for this type of issue.
This lawyer has only had one job since October 1973, 49 years ago, specializing ONLY in “the law of the law in California” (law squared/law factorial)
He helped me convey to the trial prosecutor: 1) we didn’t involve humans in individual cases 2) getting a user a refund from Comcast, for ex, is barely a legal issue 3) we provide information and bureaucracy tools (1st amendment) 4) we have disclaimers saying we don’t practice
After I responded in writing, they asked to interrogate me over Zoom, which we agreed to.
Over a grueling two hour video call, which involved questions like: “how are you not practicing law by helping a consumer cancel Planet Fitness,” we made our case.
Since then, they have left us alone and the issue is resolved.
But I am sharing this story as a warning.
If you help too many people get refunds from Comcast, watch out! The California prosecutors are coming for you!
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Last week, a DoNotPay user received a medical bill for $1,302 for blood work. We negotiated the bill down to ~$150, a 92% discount.
Here is a step by step guide to how we did it, using 2 Federal laws and one Texas law, and how to force hospitals to lower your bills:
The hospital just sent the bill with payment options. There was no list of services provided or an itemized receipt.
So our system sent a demand letter under Texas SB 1264 that requires hospitals to provide an itemized bill within 30 days.
Once the consumer got the bill, we found two violations of Federal Law and used that to negotiate.
First, the bill listed that work was as an “initial consultation” under E&M Codes. But the consumer has visited the hospital before and it should have been a “follow up visit.”
Every month, DoNotPay receives Cease and Desist letters from the big corporations we are fighting.
In the past month, we have gotten them from LegalZoom, Bank of America, a Michelin restaurant in SF that hasn’t been able to charge consumers cancellation fees and Craigslist
The letters always clutch at straws, trying every tactic possible to get us to stop helping consumers fight them. From copyright infringement to defamation, they are trying everything!
Sometimes they waste $1000/hour on law firms to draft a letter, thinking that will scare us. Other times they try to pressure our hosting providers, who forward their correspondence but ignore them.
We are confident in our legal position and never change a thing!
If you have under $10,000-25,000 with @CelsiusNetwork (or any crypto exchange that has frozen your funds), here is a step by step guide on how to get your money back ahead of everyone else using the law:
1. As of right now, these exchanges have not yet filed for bankruptcy protection. Therefore, they are subject to small claims court judgements.
Small claims court cases typically take 1-2 months. As long as this drags on longer than that, this strategy will work.
2. To file a small claims lawsuit, the first step is to send a demand letter.
The demand letter should say 1) how much you are owed 2) why you think you are owed the money.
For Celsius specifically, you should mail it (return receipt requested) to: