The Illinois Advance Fee Agreement: What You Need to Know

An advance fee agreement is a contract between a client and a professional service provider that requires the client to pay a fee in advance of receiving the services. In Illinois, these agreements are regulated by the Illinois Attorney Registration and Disciplinary Commission (ARDC).

If you are considering entering into an advance fee agreement in Illinois, it is important to understand the rules and regulations that govern these agreements. Here is what you need to know:

1. The agreement must be in writing.

Under Illinois law, an advance fee agreement must be in writing and signed by both the client and the attorney or other professional service provider. The agreement must clearly state the nature of the services to be provided, the fee to be charged, and any other terms and conditions of the agreement.

2. The fee must be reasonable.

The fee charged for the services provided must be reasonable. The ARDC has established guidelines for determining the reasonableness of fees, which take into account factors such as the time and labor required, the complexity of the matter, and the experience and skill of the attorney or other professional service provider.

3. The fee must be deposited in a trust account.

Any fees paid in advance by the client must be deposited in a trust account until the services have been provided. The attorney or other professional service provider may not withdraw the funds from the trust account until the services have been provided or until the fee has been earned.

4. The agreement may be terminated.

The client may terminate the agreement at any time by giving written notice to the attorney or other professional service provider. If the agreement is terminated before the services have been provided, the attorney or other professional service provider must refund any unearned portion of the fee.

5. There are consequences for violating the rules.

If an attorney or other professional service provider violates the rules governing advance fee agreements in Illinois, they may be subject to disciplinary action by the ARDC. This can include suspension or revocation of their license to practice.

In summary, if you are considering entering into an advance fee agreement in Illinois, it is important to ensure that the agreement is in writing, that the fee is reasonable, that the fee is deposited in a trust account, and that the agreement may be terminated if necessary. By following these rules and regulations, you can help ensure that your agreement is fair and legal.