It is extremely important in this profession that you make clear to all parties you are not an attorney and cannot provide legal advice (unless, of course, you happen to be a lawyer). Those in the legal profession take this very seriously and some can be quick to accuse a careless debt negotiator of UPL.
Since starting my practice in 1997, I have never had a problem with this. All of my correspondence includes a disclaimer indicating I am not an attorney and I preface all my initial conversations with prospective clients and creditors' agents with this same information. I strongly encourage everyone in this profession to state this as obviously as possible in all business related communications.
However, this is not always enough. Since we are often dealing with debts that have escalated to lawsuits, our clients may look to us for guidance with their cases. Be careful that you do not give advice that could be construed as "legal advice". Be clear that you only specialize in negotiating discounted out-of-court settlements and you should not have any problems with UPL accusations.
As an additional service, I also suggest that you check your area for 1 or 2 reputable civil defense lawyers as referrals for any of your clients that you are unable to help with a settlement. This may not earn you any fees but it goes a long way in "good-faith" relations with your clients and may get you a referral from a happy one later.
Following these guidelines and using the wording provided in my sample correspondences will help ensure you a long and profitable career in this exciting profession.
Scott F. Soape
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