CREDIT SHIELD PROGRAM

Transcription

1 CREDIT SHIELD PROGRAM Do you have private student loans, credit cards, medical or other debts? Are you being harassed by debt collectors or feel you might have been charged excessive interest & fees? Have you defaulted on loans or received a collection notice? If you said yes to any of these questions, Credit Shield can help you become DEBT FREE! The Credit Shield system invokes the federal laws and statutes found in the Fair Debt Collection Practices Act among 8 other consumer rights laws to protect you from third party debt collectors, fraudulent debt collection practices and violations of your rights. Our procedure requests a forensic audit of the account which collectors are trying to make you pay; we require your collector to provide validation, verification, and proof of their legal authority to collect from you. Recently, over 10,000 debt cases were dismissed in Maryland due to a debt collector not being licensed (not having legal authority) to collect. Due to legal technicalities, fraud by some collectors, or a lack of records from the original creditor, debt collectors are most often unable to legally validate and collect the debt. Because Credit Shield uses a variety of laws to demand full verification of the source, validity, and legal authority of the debt collector to pursue you, they often cease collection; should they not cease collection or file a suit, our procedural paperwork can be used as a defense proving the debt was not validated. NOTICE: The Credit Shield system is NOT a debt settlement, modification, or negotiation service. Credit Shield requires debt collectors to prove that the debt is 100% legal, collectable, valid, and verified or you should pay nothing. WHY CHOOSE CREDIT SHIELD: When you hire Credit Shield you can expect harassing calls to yourself and friends or family members to stop. This is because we utilize a notary to send out your paperwork. Once you have an authorized representative overseeing your account the debt collector may not contact you or others again with a Cease and Desist Order on file. If you do not have a notary sending your documents, a collector may call you at home or work, as well as calling other people to get your current contact information. Credit Shield utilizes multiple laws to make the debt collector prove they are authorized to collect, that the debt originated in lawful compliance with all federal laws, state laws, and regulations including, but not limited to, the Fair Debt Collection Practices Act (FDCPA), the Truth in Lending Act (TILA), Credit Card Act of 2009, Fair Credit Reporting Act (FCRA), Foreign Corrupt Practices Act (FCPA), Privacy Act of 1974, and the FDCPA. Our paperwork has muscle because the debt collector can be charged with monetary damages if they continue collection without providing all of the proof required to verify the debt in full. The laws we use provide penalties and fines for non-compliance or failure to answer the Notice and Demand for

2 Verification of Debt within thirty (30) days of the debt collector s receipt of paperwork related to your account. The FDCPA for example, allows for a $1,000 damage paid to you should they violate the law by continuing to make payment demands without having verified the debt. Under U.S.C. 1692e(8) it 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." The above means it is also illegal for the debt collector to report that the debt is not paid when it is in fact under dispute, the two are very different things. Only after they prove the debt through verification (defined below) can they report that the debt is unpaid. Black s Law Dictionary, Sixth Edition, defines verification as follows: Confirmation of correctness, truth, or authenticity, by affidavit, oath, or deposition. Affidavit of truth of matter stated and object of verification is to assure good faith in averments or statements of party. Lastly, our paperwork is sent directly to a fiduciary (management) of the debt collection company whom we hold personally liable for the claims being made against you. HOW CREDIT SHIELD WORKS: The Credit Shield system invokes the laws and statutes found in the Fair Debt Collection Practices Act, and other laws to protect consumers against third party debt collection agencies, fraudulent debt collection practices, & violations of people s consumer rights. Our procedure requests a forensic audit from the collector. We start with a demand to your collector to provide validation, verification, and proof of their legal authority to collect debt against you. Utilizing the various laws pertaining to debt collection, lending, and billing practices, Credit Shield sends your collector a demand to cease collection activities until such time as they have verified, validated, and proved their authority. Some of what we require as part of this process includes a fully completed Debt Collector Disclosure Statement signed under penalty of perjury, proof of how they got the debt to collect (bought it, assumption, novation, etc..), the history of the debt (was it charged off, paid by insurance, etc...), also they must provide the original accounting and contracts from the original creditor upon which the amount owed is based, and more. Your demand for verification, validation and authority to collect is sent Certified Mail by a notary public from your authorized representative. The debt collector must respond in a timely manner to the authorized representative through the notary. If they fail to return all the demanded proof (which is almost always the case), then a Notice of Non-Response, Notice of Fault, and Affidavit in support of Non-Response is sent by Certified Mail providing the collector with a limited additional time to respond. After a short period of time expires for their second chance to send the required proof of verification, validation and authority to collect (which they almost never do), the matter should be resolved. In the event that the collector continues making demands or files a suit against you, the notarized record of the demands and non-response (called a commercial record) can be used as your defense that the debt was not validated, you can also sue them back in a counter-

3 claim for a violation of the Fair Debt Collection Practices Act (FDCPA), which states in part at 15 USC 1692g(b): "If the consumer notifies the debt collector in writing 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." The verification described above is only one part of what we demand of the debt collector, there is more in the FDCPA as well as the other laws we use in the paperwork, such as the Federal Truth in Lending Act and Fair Credit Billing Act, which we include to ensure not only verification but also validation and authority to collect. Credit Shield is based on the belief that our customers' needs are of the utmost importance. We understand that fraudulent practices in the financial industry take place and that debt collectors violate laws in order to collect money from you. In fact, the purpose of the "Fair Debt Collection Practices Act" as worded in the act states: "There is abundant evidence of the use of abusive, deceptive, and unfair debt collection practices by many debt collectors. Abusive debt collection practices contribute to the numberof personal bankruptcies, to marital instability, to the loss of jobs, and to invasions of individual privacy." Some collection agents threaten or use intimidation techniques to make you send them money, this is illegal. Some collectors increase rates without proper notification, under the new Credit Card Act of 2009 (a.k.a. Credit Cardholders' Bill of Rights), this is illegal. Collection agents are on commission, so if you do send them money without first requiring them to verify the debt, you are providing that agent with a bonus in their paycheck. Our entire team is committed to protecting your rights, meeting your needs and performing more effectively than any other type of debt resolution in the market today. We are not settling your debt for less money, negotiating, or modifying your loan; instead we audit the account by requiring the debt collector to prove they have lived up to all the laws required to legally proceed with collection. We are dedicated to resolving unsecured debt no matter the balance. FAQ'S: Q. What is the purpose of the The Credit Shield 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 ; the Fair Credit Billing Act, 15 USC 1637; Consumer Credit Protection Act, 15 USC Chapter 41; and the Equal Credit Opportunity Act, 15 USC e;all of which requires them to prove the debt is not fraudulent, incorrect, or otherwise faulty.

4 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 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 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! 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

5 Act(15 USC 1692 et seq.), falsification of public documents (18 USC 3001, 3018), impairing the obligation of contracts (US Constitution [1787] Article I, Section 30:1; 42 USC 1981), extortion (18 USC 872, 873, 880), denial of equal protection under the law (US Constitution [1787], 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. 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 wage garnishments 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 Credit Shield 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 Credit Shield. 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.

6 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, private student loans, 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. 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 Credit Shield 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 or private student loan 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 Credit Shield 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 or private student loan debt elimination? A. No, that term is a misnomer. The only true way to eliminate your credit card or private student loan 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 businessof debt buying for a typical six cents on the dollar. Since contracts, such as are credit card contracts, medical bills or private student loans 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.

7 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. Is this the same as bill consolidation? A. Bill consolidation and debt consolidation are synonymous. We do neither. Q. Will the Credit Shield Program help me avoid bankruptcy? A. The Credit Shield Program is a viable alternative to bankruptcy in that it will give you similar protection from debt collectors and keep them from harassing you with phone calls and demand notices. The greatest advantage is that our program will not destroy your credit for 7 to 10 years and you will not be under the supervision of the court system. Q. Is bankruptcy a lot cheaper than the Credit Shield Program? A. Filing for bankruptcy is less than $300. An attorney may charge from $500 up to a few thousand dollars depending on the complexity of your case; however, that is not the true cost of a bankruptcy. Add to that the added interest payments you will have to make on house and car payments, the possibility of not being able to rent a house or apartment due to filing Bankruptcy, the potential loss of any professional license, security clearance, etc. Many employers will not hire someone who has filed Bankruptcy. None of that will happen to you in the Credit Shield Program. Q. What is your guarantee? A. The Credit Shield 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 Credit Shield 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 cancelation. Credit Report &Credit Score: If you have debts that have been referred to a debt collector, charged off, high balances or you were late in paying then your credit score has probably been negatively affected. Credit Shield works with a credit repair agency to help with this situation, if you have retained our services to dispute your debt then we suggest you wait until the process is completed to begin credit repair.

8 How do I get judgment I ve 'paid' updated on my credit report? Judgments are a matter of public record as well as a part of your credit report. A creditor has up to 90 days to report a debt as satisfied to the credit bureaus. You can always send a letter to the credit bureaus informing them that the judgment has been satisfied. Any changes to public records must be done through the court by which the judgment was issued. You can file a motion with the court to issue a Satisfaction of Judgment. If granted, the judgment will show as satisfied in your public record. FDCPA Prohibitions: What practices are off limits for debt collectors? Under the Fair Debt Collection Practices Act the following actions are prohibited of Debt Collectors: Debt collectors may not harass, oppress, or abuse you or any third parties they contact. For example, they may not: use threats of violence or harm; publish a list of names of people who refuse to pay their debts (but they can give this information to the credit reporting companies); use obscene or profane language; or repeatedly use the phone to annoy someone. False statements: Debt collectors may not lie when they are trying to collect a debt. For example, they may not: falsely claim that they are attorneys or government representatives; falsely claim that you have committed a crime; falsely represent that they operate or work for a credit reporting company; misrepresent the amount you owe; indicate that papers they send you are legal forms if they aren t; or indicate that papers they send to you aren t legal forms if they are. Debt collectors also are prohibited from saying that: You will be arrested if you don t pay your debt; they ll seize, garnish, attach, or sell your property or wages unless they are permitted by law to take the action and intend to do so; or legal action will be taken against you, if doing so would be illegal or if they don t intend to take the action. Debt collectors may not: Give false credit information about you to anyone, including a credit reporting company; send you anything that looks like an official document from a court or government agency if it isn t; or use a false company name. Unfair practices: Debt collectors may not engage in unfair practices when they try to collect a debt. For example, they may not: try to collect any interest, fee, or other charge on top of the amount you owe unless the contract that created your debt or your state law allows the charge; deposit a post-dated check early; take or threaten to take your property unless it can be done legally; or contact you by postcard. About Debt Collectors: Debt collection is the process by which a company or person who owns a debt, collects money (or other things of value) from the debtor so that the debt is repaid. In general, debt collection can be performed by the original creditor, or by a person or company that buys that debt or information from the original creditor. If a debt collector is informed they must verify the debt under the Fair Debt Collection Practices Act they must cease collection until it is "verified" ~ for

9 more on this visit on FAQs page. Following is a general overview of the debt collection process, and the steps that you the debtor can take to protect yourself. What is an original creditor? An original creditor is the person or company or a subsidiary or agent of the company that originally lent you the money. For instance, if you originally borrowed money from General Credit, Inc., then General Credit, Inc., and any subsidiaries or agents of General Credit, Inc. are considered the original creditor. What is a debt collection agency or debt collector? A debt collector or debt collection agency is a person or company that collects a debt owed to another. In fact, in many cases, the debt now may be owned by the debt collector or debt collection agency. In simple language, a debt collector is someone who usually has purchased the debt directly from the original creditor or from another debt collector who originally purchased it from the original creditor. What s the difference between a debt collector/debt collection agency and the original creditor? They re both trying to get money from me! The difference between a debt collector/debt collection agency and the original creditor is that two categories are treated differently under the law. The Fair Debt Collection Practices Act (FDCPA) does not apply to the original creditor or the original creditor s agents or subsidiaries. The FDCPA only applies to debt collectors and debt collection agencies. Why does the Fair Debt Collection Practices Act (FDCPA) only apply to debt collectors and not original creditors? When the FDCPA was originally put into law in the 1970s, Congress was trying to prevent abusive practices by debt collectors. Because the original creditor places like Bank of America or Chase or BBT have an interest in maintaining a good relationship with you, even if you may have defaulted on a loan, they typically do not engage in the worst kinds of harassing behavior. So Congress excluded them from the act. However, debt collectors and debt collection agencies are people who have purchased the debt from a company like Bank of America, Chase, BBT and so forth. Although places like those banks sometimes try to persuade debt collectors not to harass their former customers, debt collectors don t always behave. After years of complaints, Congress sought to use the power of the law to regulate the behavior of debt collectors. This law the Fair Debt Collection Practices Act can be your tool to stop the abuse and harassment.