ConsumerWatch

SAN FRANCISCO (CBS 5) ― Legal aid centers that help the poor with noncriminal issues ranging from foreclosures and evictions to immigration problems, are seeing their staffs and services in jeopardy in a time when more people need help. In a twist of irony, the centers are having their funding reduced because of a move from the federal government to help the economy.

For years, legal aid groups have benefited from interest earned on lawyers' trust accounts. These are deposits that lawyers hold in trust from clients during personal injury payouts or real estate transactions. The interest earned on those deposits is donated to legal help for the poor. It's called IOLTA or Interest On Lawyer Trust Accounts.

The problem is, with the federal interest rate dropping to a historic low, these accounts that used to earn 5% interest are now earning less than 1%. It was a rate drop that was welcomed as a means to beat the recession, but that is also having a negative impact on legal aid centers.

Stephanie Choy, director of Legal Services Trust Fund Program at the State Bar of California, said this is the core funding for many programs.

"This is new for us. We don't know quite what it means for programs. We fear the worse. We're prepared for the worse," Choy said.

The reduction in funding comes at a time when programs are already experiencing state cutbacks.

"The sad thing is that in bad economic times, the legal needs of poor people go up not down," Choy said.

Julio Loyola, a Peruvian immigrant, receives legal advice from La Raza Centro Legal regarding immigration. Unable to afford a private attorney, he turned to this free legal aid center for help.

"I know immigrants have rights, documented or not, but I wouldn't know that if this legal center was not around," Loyola said.

But at this rate, La Raza Centro Legal is losing the equivalent of a year's salary for one lawyer. Director Ana Maria Loya said losing even one staff member means dozens of people will not receive much needed help.

"It would be very heart-breaking to have to cut back on that to the members of our community. Those people would be out of luck. I'm not sure where they would be able to go," Loya said.

The situation is so serious that the State Bar of California has set up a Justice Gap Fund where people can make donations to help low-income Californians receive legal assistance. For more information on how to make a contribution, click here.

Below you can find contact information provided by the State Bar for legal and other assistance:

To report ELDER ABUSE:
In a private home:
Local Adult Protective Services
(for referral, cal 1-800-510-2020)
In a licensed facility:
Local Ombudsman
(for referral, call 1-800-231-4024)
At either type of location:
State Attorney General's elder abuse hotline
1-888-436-3600

For referrals to local SENIOR SERVICES:
California Department of Aging hotline
1-800-510-2020
National Eldercare Locator Service
1-800-677-1116

For LEGAL ASSISTANCE:
Senior Legal Hotline
1-800-222-1753 (916-551-2140 in Sacramento)
State Bar-certified lawyer referral services
1-866-442-2529 (local referrals)

For help dealing with DOMESTIC VIOLENCE:
National Domestic Violence Hotline
1-800-799-7233 (local referrals)
California's "Safe at Home" Program
1-877-322-5227

To investigate before you INVEST:
California Department of Corporations
Seniors Against Investment Fraud (SAIF)
1-866-ASK-CORP (275-2677)

To file a complaint on a LIVING TRUST "MILL":
Local district attorney's office
California Department of Insurance
1-800-927-HELP (4357)

To check CONTRACTOR'S LICENSES:
Contractor's State License Board
1-800-321-2752

For information on HEALTH CARE OPTIONS:
1-800-434-0222 (local HICAP advisor)
1-800-633-4227 (Medicare)

For information on RESIDENTIAL CARE FACILITIES:
California Advocates for Nursing Home Reform
1-800-474-1116 (nursing homes, assisted living)
California Registry
1-800-777-7575 (various living arrangements)

To file complaints or ask questions about HMOs:
Managed Health Care (HMO) Help Center
1-888-466-2219

For help in continuing to LIVE INDEPENDENTLY:
State Independent Living Council
1-866-866-7452 (local referrals)

For VETERANS' ASSISTANCE:
U.S. Department of Veterans Affairs
1-800-827-1000

For assistance with SOCIAL SECURITY:
Social Security Administration
1-800-772-1213 (benefits status, referrals)

For inquiries on CONSUMER ISSUES AND SCAMS:
California Department of Consumer Affairs
1-800-952-5210 (info, complaints, license checks)
1-916-574-7870 (Cemetery and Funeral Bureau)
1-866-785-9663 (Office of Privacy Protection)
California Attorney General's Office
1-800-952-5225 (public inquiry line)

To check out AN ATTORNEY:
The State Bar of California
1-800-843-9053 (complaints, license checks)

To stop MARKETING CALLS, MAIL AND E-MAIL:
1-888-382-1222 ("do not call" registry)
1-888-567-8688 (stop pre-approved credit offers)

To order FREE CREDIT REPORTS (annually):
1-877-322-8228
www.annualcreditreport.com

To learn about LIFETIME PASSES to NATIONAL PARKS:
1-888-GO-PARKS (467-2757)

(© MMX, CBS Broadcasting Inc. All Rights Reserved.)