What is the purpose of the Debt Dispute Program?
o 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.
How does the program work? Is there a lot of work for me to do?
How long does the process take?
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.
What if the debt collector continues to try and collect?
Why do the 3rd party debt collectors often cease collection?
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.
If I have a lien against me, won’t that show up in my credit file?
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.
What if I already have a judgment against me? Will this still protect me?
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.
Is this similar to bankruptcy?
What is meant by the term “debt resolution”?
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.
What types of debts are covered by the Fair Debt Collection Practices Act (FDCPA)?
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.
Can a debt collector contact anyone else besides you about your debt?
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.
How much do collection companies pay for delinquent credit card debt?
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.
Does the Program include debt settlement negotiation?
Our firm does not do debt settlements; rather, we represent you in disputing your unsecured debt.
Is this credit card debt elimination?
How does this differ from debt consolidation?
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.
What is your guarantee?
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.
What happens if I cancel during the process?
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.