Increased visibility as a partner in access to justice: The State Bar will prominently highlight Leadership Banks on its website, including their names first on the list of financial institutions eligible to hold IOLTA accounts, and including hyperlinks to their institution’s website. The State Bar will draw attention the Leadership Bank program in its communications and publications seen by attorneys around the state, emphasizing how selecting a Leadership Bank for IOLTA funds will increase funding for civil legal aid to vulnerable low-income Californians.

Marketing edge: Financial institutions will have permission to advertise their Leadership Bank designation and branding as evidence of their support for their communities and for civil legal aid.

Ability to obtain Community Reinvestment Act credit: Being a Leadership Bank will help financial institutions fulfill their obligations under the Community Reinvestment Act (CRA) by generating funds that will go directly towards assisting those most in need. Civil legal aid helps prevent homelessness, protect families, and stop wage theft, among many other areas that align with CRA development goals. Becoming a Leadership Bank is an investment in the community that contributes to its overall economic strength and stability

Demonstrated social responsibility: Financial institutions care about their customers and their communities. This is another way to support veterans, seniors, and low-income Californians struggling with disability benefits, medical care, and their financial health. The California Justice Gap Study estimates that 33 percent of the problems that low-income Californians seek help for will not be resolved due to insufficient resources. In fact, in the past year only 27 percent of low-income Californians received some legal help for issues that matter the most to them; less significant issues received even less support. The Leadership Bank program is an immediate and critical means to start filling the gap by providing additional interest on IOLTA accounts that in turn will fund more services to these clients.

Source: State Bar of California, The California Justice Gap Study: Measuring the Unmet Civil Legal Needs of Californians (2019).

Starting in January 2020, the State Bar will highlight the Leadership Bank Program through press releases and social media accounts. In addition, the State Bar will ensure that Leadership Banks are prominently displayed on its website and have active hyperlinks to the Leadership Banks’ IOLTA websites. Lastly, designated Leadership Banks may advertise their IOLTA offerings with the State Bar Leadership Bank logo.

IOLTA stands for Interest on Lawyers’ Trust Accounts. Attorneys deposit client funds that they plan to hold briefly, or that are too small to earn interest for the client, into larger shared accounts. Over 73,000 attorneys make deposits in approximately 49,000 IOLTA accounts in California. As of September 2019, IOLTA accounts hold nearly $5 billion. Any interest earned on these accounts is paid by financial institutions to the State Bar, which in turn distributes those funds as grants to qualified nonprofit civil legal organizations throughout the state.

Refer to the State Bar’s IOLTA FAQ page for more information.

The Leadership Bank program recognizes financial institutions that elect to waive fees and pay the established compliance interest rate, thereby increasing funding for free civil legal aid to low-income Californians through the Interest on Lawyers’ Trust Accounts (IOLTA) program. Civil legal aid ensures that low-income individuals and families have access to attorneys and the legal system to address critical legal issues.

The list will be updated periodically as requests for Leadership Bank designation are received or changed, but at a minimum, quarterly.

Any marketing of or other communication or publication regarding your institution’s participation in the State Bar’s Leadership Bank program must be limited to the fact that your institution has been recognized by the State Bar for paying higher rates on IOLTA accounts, resulting in increased funding of free legal services for those in need. Leadership Banks may not state or imply that the State Bar has endorsed them generally or made any other endorsements or representations about their products or services. Failure to comply with these requirements may result in, withdrawal of the Leadership Bank designation, and withdrawal of all State Bar approval, endorsement, and connection, including the ability to offer IOLTA products.

To operate in California, all lawyer referral services must be certified by the State Bar of California. The reason for this is to provide public protection. To qualify for certification, an LRS must meet certain standards approved by the California Supreme Court and enforced by the State Bar. If you use one of the certified services, you can be assured of the following:

All lawyers who participate in a certified LRS must carry malpractice insurance.

All certified LRSs have lawyers with experience in many legal areas such as family law, personal injury, probate and landlord-tenant law. Many LRSs have subject matter panels, on which lawyers can serve only if they have demonstrated experience in a certain legal area or meet certain other requirements.

There are consumer protections when using a certified LRS’ automated referral system. Some LRSs can assess a potential client’s needs and find a referral to a lawyer through an automated system outside of regular business hours. This may be especially helpful if you need to search for a lawyer in the evenings or on weekends. If you experience problems with the automated system or need help, you should contact the LRS by email or phone during regular business hours.

A certified LRS can give you information about other services or programs if your issue does not require lawyer assistance. Some problems may at first seem to require a lawyer’s help, but actually may not. For example, you may have a problem that can be handled by a rent control board, small claims advisor, or community mediation program. An LRS may be able to direct you to government agencies or other organizations that may be better suited to assist you.

All certified LRSs are required to offer services for people of limited means at a reduced rate. See FAQ #2 for more information.

Most certified LRSs charge a fee — about $40 to $75 — for a referral to a lawyer. This referral fee sometimes includes the initial consultation with the lawyer(s). Under the State Bar rules, the combined referral fee and the fee for the lawyer cannot cost more than it would if you found the lawyer yourself, without the help of an LRS.

An LRS may also be able to recommend a free or low cost legal service program in your area depending on the nature of your issue and your income. Such services include a modest means panel (lawyers charging reduced fees), a limited scope panel (lawyers offering help with a specific portion of  case as opposed to the whole case), a flat fee panel (where the client is charged a set fee rather than an hourly fee for the service), sliding scale options, a payment schedule or a free referral for a 30-minute initial consultation. 

Note that LRSs are not required to offer reduced rate panels or services for people of limited means across all referral panels. Be sure to ask which service(s) the LRS provides.  

For more information on hiring a lawyer, read the free Finding the Right Lawyer legal guide.

Certified lawyer referral services (LRS) have been approved by the State Bar of California to refer potential clients to lawyers. They are operated by local bar associations, nonprofit legal service programs and for-profit organizations. The State Bar holds nonprofit and for-profit LRS providers to the same standards.

When you contact a certified LRS, staff or an automated referral system will ask you about your situation. The LRS will then try to match you with a qualified lawyer who handles the type of legal problem you have and arrange a consultation, which typically costs a small fee. After the initial consultation, it is up to you whether or not you want to hire the lawyer.

If your problem can be resolved without a lawyer, the LRS may be able to provide information about other organizations or agencies that may be able to help you. Search our LRS Provider Directory or call 866-44-CA-LAW (866-442-2529). If you are out of state, call 415-538-2250.

Every LRS certified by the State Bar has a certification number. Ask about or look for the LRS’s State Bar certification number, which must appear in all advertising. If an organization is claiming to be a certified LRS, but does not have a number, contact the State Bar right away at LRS@calbar.ca.gov.

If you believe your lawyer has done something wrong, you can file a complaint with the State Bar. Complaints may be submitted online or by mail. If you have questions or need assistance in completing the form, call the State Bar’s Attorney Complaint Hotline at 800-843-9053. For more information on reporting a lawyer to the State Bar and handling other problems, read the legal guide If You Have a Problem with an Attorney.

If you have a complaint about a certified or uncertified LRS, you can file a complaint against the service with the State Bar. In order to promote public protection, the State Bar will review your complaint to determine if the LRS has violated Business and Professions Code Section 6155 and State Bar Rules.

For more information on certified lawyer referral services, contact LRS@calbar.ca.gov.