Declining IOLTA Yields Cited in Second Plea for Legal Help

Declining yields from lawyer trust accounts were again cited by American Bar Association President Stephen Zack as a reason for the District of Columbia to more generously fund it legal assistance program.

In a letter, Zack wrote incoming Mayor-elect Vincent Gray seeking support for a $3.3 million appropriation for the District’s access to justice program.

 “Given the high rate of unemployment and the number of the District’s residents facing critical legal problems such as mortgage foreclosures, evictions, credit defaults, family tensions caused by unemployment, and the loss of public benefits, this is no time to reduce the availability of needed legal services by those who cannot otherwise afford them,” Zack wrote.

Yields “Declined Precipitously”

Zach, like his counterpart at the California Bar, cited declining investment returns from  IOLTA accounts as devastating resources for those in need of legal assistance. Zach said trust account revenue has “declined precipitously this year again.”  Low interest rates are the culprit.

A week before, California Bar President Bill Herbert had cited declining IOLTA returns in an appeal to all state lawyers for contributions to beef up a special account designed to help those in need.

The current District budget calls for a 50% reduction in funding for the legal services program.

“Without that funding, many of the District’s low income residents will have no where to turn to receive the legal assistance that they so desperately need,” Zack wrote.