Doing it Wrong? Paralegal Help for Consumers in Debt Collection Cases

I recently came across what I believe to be a new trend: “paralegal” services targeted at consumers who are representing themselves in debt collection cases.

Ostensibly positioned as non-legal help for those in legal proceedings who can’t afford proper legal help, paralegal services firms are offering their services to consumers who need to get their paperwork in order and file court documents and need someone to guide them through this.

It’s hard to explain, so here’s a video that popped up on YouTube this week:

Is this a new trend? I honestly have never heard of it. It seems reasonable that people who are not lawyers would need some legal advice when they are the targeted party in a lawsuit (like a debt collection suit). But they need legal advice, and these firms are very careful to note that they are not lawyers and don’t give any kind of legal advice. I find that hard to believe, but that’s what they say.

Another question: how necessary and effective are these businesses? Has anyone run up against consumers that had paralegal services help? In short, are these companies doing it wrong or doing it right?