FREQUENTLY ASKED QUESTIONS
Q. What is the purpose of the a Debt Dispute Program?
A. To provide consumers debt research, education, dispute and validation services in order to stop collection activities and make debt collectors prove they have a valid, legal, and verified debt upon which they are legally authorized to collect. This process stops fraudulent financial practices by debt collectors, provides a defense against lawsuits, and ceases the collection activities by making your debt collector “verify” the debt against you under Credit Card Act of 2009, the Fair Debt Collection Practices Act, 15 USC §§ 1692 et seq.; the Federal Truth in Lending Act(Regulation Z), 15 USC §§ 1601, et seq., & 12 CFR 226.13; the Fair Credit Billing Act, 15 USC § 1637; Consumer Credit Protection Act, 15 USC Chapter 41; and the Equal Credit Opportunity Act, 15 USC §§ 1691-1691e;all of which requires them to prove the debt is not fraudulent, incorrect, or otherwise faulty. 3rd party debt collectors have usually “purchased” the debt evidence and do not have the records required to verify the debt. Our notary’s office will send them a Notice of Demand For Verification of Debt, using a notary, and then a Notice of Fault upon their inability to validate their claim against you. In most cases the debt collector will cease collection. If they do not however, you now have a legal record that the debt is not verified which you can use as your defense.
Q. How does the program work? Is there a lot of work for me to do?
A. There is very little work for you to do. Upon entering the program, you receive a New Client Package explaining our services along with an application to provide your personal information needed in preparing your documentation. This provides the legal framework for your authorized representative to require the collector to validate their claims. You will be asked to sign the documents and get them back to us to start the process, you will be assigned a case manager and the process will begin. Our notarys will send out all the documents, and act on your behalf to get a verifiable record that the alleged debt is null and void. Additionally, this will stop collection proceedings (unless the debt collector breaks the law), because the law of The Fair Debt Collection Practices Act states in part:
If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) of this section that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or a copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.
So we are going to dispute the debt thereby forcing the bank to prove their claim on you. Check your monthly statements; they will mention something like this on the back of the bill:
“Unless you notify the undersigned in writing within 30 days that the validity of this debt is disputed, we will assume that it is valid”.
Don’t let them “Assume” your debt is valid ~ make them prove it!
as·sume /əˈso͞om/ Verb
1. Suppose to be the case, without proof:
So the collection agency sending you a bill only assumes (supposes without proof) that the debt is valid until you dispute the validity of the debt. Once you dispute the debt they can no longer assume that the debt is valid, they must now verify/prove it. You’d be surprised that in almost all cases they cannot prove the debt because they, as a 3rd party debt collector, have no contract with you (it was bought by them), they don’t have the required financial records (those stayed with the original creditor), and they NEVER provide a required valid signature from someone at the Debt Collectors office who is taking responsibility for the Truth of their claim against you.
Q. How long does the process take?
A. From the time we send out the Notice & Demand For Verification of Debt, approx. 90 days. The debt collector will have 30 days to respond (plus mailing time), then we send a Notice of Non-Response via the notary and a Notice of Fault from the attorney along with an Affidavit, the debt collector then has 10 days to cure their fault.
Q. What if the debt collector continues to try and collect?
A. Our paperwork is written so that you are empowered to go after the debt collector for harassment (18 USC 1512, 1514); mail fraud, violation of the Fair Debt Collection Practices Act(15 USC 1692 et seq.), falsification of public documents (18 USC 3001, 3018), impairing the obligation of contracts (US Constitution  Article I, Section 30:1; 42 USC 1981), extortion (18 USC 872, 873, 880), denial of equal protection under the law (US Constitution , Fifth Amendment; 42 USC 1981, 1986) Interfering in commerce (18 USC 1951, 1952, 1957), libel, fraud and attempted defrauding. Should they continue to come after you without verifying the debt they are in violation os 15 U.S.C. § 1692e(8) which states:
Communicating or threatening to communicate to any person credit information which is known or which should be known to be false, including the failure to communicate that a disputed debt is disputed, is a violation of § 1692e.
Q. Why do the 3rd party debt collectors often cease collection?
A. Our paperwork comes from a notary, the debt collector has to follow the law, and if they don’t cease collection you are empowered to go after them for their violations of the law and damages to you.
Q. If I have a lien against me, won’t that show up in my credit file?
A. Yes, it will. Part of the Program, is to take the necessary steps in preventing a lien. New liens are difficult to get removed from your credit file. The older the lien, the easier it is to remove. The most important point to understand is that you have options available to you that can prevent a lien and protect your assets.
Q. What if I already have a judgment against me? Will this still protect me?
A. Yes, but not in all cases. If, for example, a Debt Collector has sued you and won, there is probably little we can do to prevent the judgment from going through. However, we can prevent them from wages garnishment and seizing your assets. We will need to see all your documents to make a determination.
Q. Is this similar to bankruptcy?
A. In October, 2005, there was a bankruptcy reform bill that went into effect. That bill changed the face of bankruptcy considerably. Chapter 7 Bankruptcy, which is what most people used to be able to get out from under their unsecured debt load, suddenly became much more difficult to qualify for. Unless one is earning less than average income and has few assets, you will probably be forced into Chapter 13. That will require attending credit counselling, going through a “means test” in which a determination will be made as to what percentage of your debts you still must pay. Legally, this percentage can be from 0% up to 100%. We normally see about 40% being required. Earned income will then be the property of the court. A referee will be assigned to dole out the money depending on certain criteria. The bankrupt will be left with a portion of that amount to cover basic living expenses. This court appointed officer will be in control of all income until the debts are satisfied, which could take up to five years.
The Program enables you to avoid bankruptcy. There will be no “means test”, no court appointed officer, and no elongated payment plans to worry about. You will be protected from your creditors through our asset protection options; you will remain in charge and in control of your income and assets.
Q. What is meant by the term “debt resolution”?
A. A better term is probably “debt solution” as what you are really looking for is a way to solve your debt problems. Resolving debt problems could include Debt Settlement, Bankruptcy, Bill Consolidation or Debt Dispute. We choose to solve your debt problems by using consumer protection and federal laws to establish a true “Defense” to protect you while you are in the program so you can be in a position of strength when dealing with debt collectors, including have your documents sent by the notary.
Q. What types of debts are covered by the Fair Debt Collection Practices Act (FDCPA)?
A. The Act covers personal, family, and household debts, including money you owe on a personal credit card account, an auto loan, and medical bills. The FDCPA doesn’t cover debts you incurred to run a business.
Q. Can a debt collector contact anyone else besides you about your debt?
A. Generally, yes, but not if an attorney is representing you about the debt, then the debt collector must contact the attorney, rather than you, your friends, or family. If you don’t have an attorney, a collector may contact other people – but only to find out your address, your home phone number, and where you work. Collectors usually are prohibited from contacting third parties more than once. Other than to obtain this location information about you, a debt collector generally is not permitted to discuss your debt with anyone other than you, your spouse, or your attorney. Click here to see what debt collectors are prohibited from doing under the law.
Q. Can a debt collector call your work to collect a debt?
A. A creditor may call you at any number you have provided, including your place of work. Many employers frown upon these types of phone calls. If you employer does not allow collection phone calls, you must inform the creditor in writing that your employer forbids these calls. It is always best to provide them with an alternate phone number where they can reach you, if you have hired a dispute service the collector must cease calling you, and communicate in writing with our offices only.
Q. How much do collection companies pay for delinquent credit card debt?
A. This can vary from 5 to 8 percent. The age of the debt and how collectable it is determined to be are large contributing factors. Evidence of debt may be sold several times, usually for a smaller percentage of the value with each sale.
Q. Does the Program include debt settlement negotiation?
A. Our firm does not do debt settlements; rather, we represent you in disputing your unsecured debt.
Q. Is this credit card debt elimination?
A. No, that term is a misnomer. The only true way to eliminate your credit card debt or mortgage debt is to pay it off. Don’t be fooled by anyone using this term. Banks make consumer loans on unilateral installment contracts of adhesion such as are credit card member agreements. As the superior party in a unilateral contract cannot sue for breach of contract, the banks file insurance claims on non-performing accounts and collect insurance on the account. Although the bank still was an actionable damage in pursuing a theory of “on an open account,” the matter would require: (a). subrogation to the insurer, and (b). proof via authenticated evidence and testimony of every single transaction to show a deficit; so, banks charge-off and sell evidence of debt to attorneys in the illicit business of “debt buying” for a typical six cents on the dollar.
Since installment contracts, such as are credit card contracts, are not negotiable instruments and cannot be sold for value under holder-in-due-course theories of law, whatever debt had inured is extinguished along with the contract itself when sold. Attorneys in the illicit business of debt buying then use trickery, deceit, and harassment has tools to extort sums from persons no longer subject to lawful prosecution or liable for the extinguished debt. This is why our program is far superior to many others on the market. We educate you on your rights under the Fair Debt Collection Practice Act (among many laws) and make it possible for our clients to resolve their debts.
Q. How does this differ from debt consolidation?
A. In debt consolidation you move unsecured debt into secured debt, frequently by using a second mortgage on your home or a personal loan. While a lower interest rate may seem appealing, in the long run you will pay out much more with consolidation than with any other program. The only way to judge it is to actually do the math.
Q. What is your guarantee?
A. The process has a very thorough system for creating your commercial record. Within that process is a detailed 7 page questionnaire called a Debt Collector Disclosure Statement which puts the laws that are in place for your protection to work. If a respondent from the collection agency fills this document out completely, provides all required paperwork within the allowed 31 days, signs and takes full responsibility for the information provided will fully refund the client for that specific account.
Q. What happens if I cancel during the process?
A. A client is free to cancel at any time. The client should also be aware of the fact that if they cancel, we will send out letters to the collection agencies that the client cancelled and we are no longer representing that client. Our guarantee would also be voided upon cancellation.