DEBT SETTLEMENT AGREEMENT Financial Rescuers, LLC (hereinafter the Company ), whose address is noted above, and (hereinafter Client ), residing at hereby agree as follows: 1. Client is retaining the Company to administer a debt settlement program (the Program ) on behalf of Client which shall include the following: a) Auditing Client s periodic credit account statements in order to identify potential errors or inaccuracies pertaining to collectability; b) Determining whether Client s periodic credit account statements comply with certain consumer protection laws, including but not limited to, the Fair Credit Billing Act, the Fair Debt Collections Practices Act, the Fair Credit Reporting Act, and the Truth in Lending Act; c) Negotiating with Client s creditors or other parties in order to reach settlements so that Client may avoid the cost and uncertainty of litigation; These services shall be preformed within the context of the Program in an attempt to negotiate a possible settlement of all or some of Client s unsecured debt with his/her creditors or their agents. The term unsecured debts refers to any type of debt or general obligation that is not tied to any asset, and includes most credit card debt, bills for medical care, signature loans, and debt for other types of services. 2. Types of Debt that are not covered under this agreement include but may not be limited to a) Secured debts such as mortgages or loans for automobile, boats, trailers or any type of loan is backed by an asset of the client; <= Sign Here <= Sign Here
b) Court ordered debts such as child support, spousal maintenance, alimony or civil or criminal judge c) Student loans, delinquent income tax or property taxes; and d) Debts that are not Enrolled Debt(s) or are not listed on Exhibit A (see below) 3. Enrolled Accounts. The terms Enrolled Account and Enrolled Debt shall be used interchangeably herein. The credit accounts that Client wished to enroll in this program are identified on the attached List of Enrolled Accounts on Exhibit A to this agreement. This agreement shall apply to those accounts and those accounts only. The Company explicitly does not represent Client for all other possible creditors and/or debts that Client has not enrolled into this program. The Company also excludes creditors from enrollment in the Program. 4. Program Fees. In consideration of the services to be performed by the Company, the Company shall receive twenty percent (20%) of the Enrolled Debt that will be considered earned upon settlement of each Enrolled Account. In addition, Client shall pay a fee of $35.00 per month for the duration of the Program to be applied toward pre-paid legal services provided by Veritas Legal Plan, if requested, as explained in 9. 5. Program Structure. The Program shall operate as follows: Each month Client shall make payments as indicated in Exhibit B. These funds will be automatically withdrawn each month from Client s savings or checking account on a set date chosen by Client. The payment shall be deposited by either Global Client Solutions (www.globalclientsolutions.com) ( Global ) who is a third party service provider, or a third party service provider of the Client s choosing. Client will be given a website address to view his/her account status online at any time they choose should Client opt to use the services of Global. Along with this Retainer Agreement, Client shall execute a separate agreement between Client and Global. By way of further information, Global shall charge Client its fees per the Schedule of Fees and Charges set forth in the Global agreement. <= Sign Here <= Sign Here
Client acknowledges and understand that funds will be accumulating in Client s Dedicated Account but payments will NOT be made by the Company to Client s creditors or their agents each month. Instead, as funds accumulate in Client s Dedicated Account saving, the Company will negotiate with creditors/agents in an effort to reach a settlement. The Company will convey all offers of settlement to Client for instructions on whether to accept or reject offer. If Client changes Company in the future, it is agreed that the Global account is fully transferable. Client expressly agrees and acknowledges that if the total negotiated debt exceeds the Dedicated Account, Client will be responsible for the shortfall. 6. Payment Schedule Adjustment. The Company may adjust the Payment Schedule ( Exhibit B ) as circumstances shall necessitate. Such circumstances include, but are not limited to the following: a) Adjusting the amount of debt for any creditor that Client enrolls in this program. For example, if Client enrolls a creditor in the program with an incorrect debt amount, Company may adjust the fee schedule to reflect the correct debt amount. b) Asking Client to provide additional funds to settle accounts. For example, Company may be able to reach a settlement for Client. If Client does not have sufficient funds in Client s Dedicated Account, Company may ask the client to provide additional funds in order to accept the settlement. c) Reaching structure settlements for Client. For example, Client may not be able to provide additional funds for a lump-sum settlement as described in 7(b) above. Therefore, Company, with Client s approval, may enter into a payment plan that Client can afford. Client shall fund this payment plan separately from this program. 7. Lawsuits by Creditors Client acknowledges and expressly agrees that he/she has been advised that a creditor and/or creditors may file a lawsuit in the event of default. The Company shall not provide any defense to any such <= Sign Here <= Sign Here
lawsuit. Instead, the Company shall continue to negotiate with the creditor and/or creditors throughout the pendency of said lawsuit, so long as Client remains enrolled in the Program. 8. Defense of Lawsuits Company has partnered with a third-party nationwide attorney network, Veritas Legal Plan, which can provide full legal representation for each Enrolled Account. In order to avail yourself of this service, Client must execute a separate application between Client and Veritias Legal Plan, appended hereto, and must further agree to pay Veritas fees while in the Program. Failure to sign and execute the Veritas application and/or failure to pay Veritas fees will result in termination from membership in Veritas and termination of any attorney coverage. Should Client decline the optional attorney coverage via Veritas Legal Plan, Client must sign the Opt- Out Waiver, provided by Company upon notice of declination of coverage by Client. Regardless of whether Client enrolls in the Veritas Legal Plan, Client shall be fully responsible for any and all court filing fees or costs associated with any lawsuit. 9. Limited Power of Attorney Client hereby grants the Company and/or its assigns a Limited Power of Attorney to contact any creditors/agents or other third parties to negotiate any debts, hire local counsel, and provide any other services in connection with the subject matter of this Agreement. This Limited Power of Attorney does not give Company authority to execute any documents on behalf of Client. 10. Expenses. Client s retainer fee covers out of pocket expenses, including, but not limited to: long distance charges, messenger, courier, and express delivery charges, facsimile transmission charges, computer research, printing and reproduction cost, and retaining other legal counsel and/or local counsel. 11. Authority to Transfer Funds and NSF Charges. Client authorizes Global to deduct all payments and monthly processing fees as per Exhibit B via Electronic Payment Authorization from Client s checking or savings account. The Company requires a minimum notice of seven (7) business days to change any scheduled electronic fund transfers from <= Sign Here <= Sign Here
Client s bank account. There shall be a $35.00 fee for each Non Sufficient Funds (NSF) charge assessed by Company. 12. Covenant to Hold Harmless. Client hereby waives any claims against the Company and shall hold Company, its principals, employees and agents harmless for all third party violations for the various federal acts, including but not limited to, the Fair Credit Billing Act, the Fair Debt Collection Practices Act, and the Fair Credit Reporting Act. While the Company shall monitor and enforce Client s Federal Rights, the Company cannot control the activities of third party creditors, debt collectors, and/or credit reporting agencies, other than with the initiation of litigation. For a complete discussion of Client s rights under Federal law, please visit http://www.ftc.gov and search for Fair Credit Billing Act, Fair Debt Collection Practices Act, and Fair Credit Reporting Act. Client further holds Company, its principals, employees and agents harmless for any adverse consequences pertaining to Client s debts that Client has enrolled into this program as part of this contract, that may result from services performed under this contract prior to cancellation, including, but not limited to, the closing of any or all such debts. 13. Termination by Company. The Company may cancel this contract if Client breaches any of the terms contained herein, or for any reason at its sole discretion. Breaches include, but are not limited to: a) Client failing to make any payments set forth in the Fee Payment Schedule contained in Exhibit B ; b) Client misrepresents or fails to disclose any material facts relating to the Program; or c) Client fails to cooperate or otherwise breaches Client s duties herein. 14. Termination by Client. Client may terminate the services of the Company at any time and for any reason upon written notice sent to the Company via Certified U.S. Mail. Client s monies that have been deposited in Client s Dedicated Account (less any payments made to creditors upon settlement) shall be refundable upon termination. Client expenditures in relation to Veritas and/or Global shall not be refundable by Company under any circumstances. <= Sign Here <= Sign Here
15. Disputes and Choice of Law. Any controversy or claim arising out of or relating this contract, the parties business relationship, or the breach of this contract, shall be settled by arbitration administered by the American Arbitration Association in accordance with its Commercial Arbitration Rules including the Optional Rules for Emergency Measures of Protection, and judgment on the award rendered by the arbitrators may be entered in any court having jurisdiction thereof. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania. Jurisdiction in any legal action is governed solely by Pennsylvania law. Venue in any legal action or arbitration will be Montgomery County, Pennsylvania. Any action to enforce this agreement or otherwise institute litigation against any party, whether in law, equity, tort, or contract shall only be brought in Montgomery County, Pennsylvania. 16. Entire Agreement. This agreement sets forth the entire agreement between the parties with regard to the subject matter of this agreement. No other agreements, representations, or warranties have been made by either party to the other with respect to the subject matter of this agreement. Client only relies on representations made herein. 17. Severability. If any of the provisions of this agreement are found or deemed by a court of competent jurisdiction to be invalid or unenforceable, they shall be considered severable from the remainder of this agreement and shall not cause the remainder to be invalid or unenforceable. 18. Reasonable Attorney s Fees to Enforce. Each party is responsible for its own attorney s fees and costs in any action brought relating to this Agreement. 19. Disclosures and warnings to Client. Client acknowledges and understands that: A) This is NOT a Debt Consolidation Program; This is NOT a credit counseling program. The service provided by the Company is intended as a last resort for consumers. <= Sign Here <= Sign Here
B) This Program is NOT a loan. C) The Company will NOT be making monthly payments to Creditors on behalf of Client. The monthly payments that Client makes will accumulate to settle Client s accounts and to satisfy any Company fees and consultant fees. D) Results of the Program cannot be guaranteed. E) The Internal Revenue Service (IRS) classifies certain settled debts as taxable income. Client should consult with their tax professional to determine any tax liability arising from settled debts. F) Creditors may exercise the right of offset (the legal right of a bank to seize deposited funds to cover a loan that is in default). Client should continue making monthly payments to their creditors if they have the means to do so. Failure to make at least the minimum monthly payments required by creditors usually will result in assessments of late fees, penalties and increase interest rates by creditors thereby increasing the balances owed. G) Credit bureaus may still report Settled for Less than Full Amount or other similar language on Client credit report even after paying settlements to creditors. H) Client further acknowledges that Client s credit score may, and likely will, go down upon entering this program. I) Client has reviewed their budget and has determined they can afford to be in the Program based on their expected income and expenses. J) The Company only works for the Client, not any other third party and Client is not relying on any representations made by any third party. K) Client hereby warrants and represents to Company that: (1) Client specifically does not want to file for bankruptcy as a means of addressing Client s financial situation; and (2) Client does not seek a bankruptcy consultation and/or analysis from Company. L) Client warrants that Client has a financial hardship, such as loss of income, divorce, family death or illness, personal illness, family or personal disability or reduced income, and/or any other major change that impedes Client s finances. Client further warrants that Client can <= Sign Here <= Sign Here
and will produce evidence of such hardship. 20. Agreement to Assist and Cooperate. Client understands that once represented by Company, creditors and collection firms should now contact the Company directly. However, if collection activities by Client s creditors persist, Client will log the calls, including the creditor or collection agency name, the name of the representative calling, the phone number they are calling from (along with their extension), and the date and time of EACH call. The call logs will be complete with the above listed information and Client will send them to the Company on a regular basis to ensure that Client s rights are not violated. This will allow Company to efficiently track violations made b these creditors. Client understands that keeping this log is vital to the success of the process. Client will also send billing statements for all enrolled accounts to the Company so that the Company can properly audit accounts. 21. Discontinue Use of Credit Accounts. Client will not use any of the credit accounts enrolled in this program. Client understands that creditors will most likely close or restrict Client s accounts if required minimum payments are not made. 22. Further Negative Impact. Client understands and acknowledges that any loans, insurance, bank accounts (checking, savings, CDs, etc.), home loans, etc. related to any of the credit cards that are enrolled in this program may be negatively affected from this program as well. 23. Court Documents. If any court documents related to the enrolled accounts (such as summons, complaints, or other legal documents) are delivered to Client, Client must forward them to the Company within 48 hours of receipt AND confirm that Company has received the documents. 24. Covenant not to Incur Additional Credit. Client understands and acknowledges that during enrollment in the Program, Client should not attempt to incur additional loans or credit because this could hurt the Company s ability to negotiate a settlement or litigate in court. <= Sign Here <= Sign Here
25. Consent to Facilitate Third Party. Client expressly consents and appoints the Company to facilitate payment and disbursements of any and all debt settlement consultants fee(s) owed to any and all third parties as a result of this debt settlement program. Client further agrees to hold the Company harmless with regard to any liability arising from any an all errors and/or omissions with regards to facilitation of payment of such consultants fee(s) payable to any and all third parties. 26. Acknowledgment. Client acknowledges that he/she has read the foregoing Retainer Agreement and fully understands the terms and conditions herein. This entire agreement is acknowledged, agreed to and accepted by: <= Sign Here <= Sign Here
EXHIBIT A ENROLLED ACCOUNTS Name of Creditor Account No Type of Debt Approx Balance Date of Last Payment <= Sign Here <= Sign Here
EXHIBIT B FEE SCHEDULE <= Sign Here <= Sign Here
LIMITED POWER OF ATTORNEY I/We hereby duly authorize, empower and appoint Financial Rescuers, LLC, including any of its attorneys, other staff, or other parties it may designate as my Attorney-in- Fact, to do the following on my behalf: 1. Communicate with any creditor, and obtain any requested information regarding any accounts or debts I may owe, including but not limited to the balance of my account, payment history, credit rating, verification of the account, and any other information necessary to make satisfactory arrangements for the payment of any account or debts; 2. Make good faith settlement or payment offers in my behalf; and 3. Settle, resolve, or arrange payment for any of my debt or accounts This Limited Power of Attorney does not give the Financial Rescuers, LLC the authority to execute any documents on behalf of Client. <= Sign Here <= Sign Here
Please attach a voided check to this page. Failure to do so will prevent your acceptance into the Program. <= Sign Here <= Sign Here
CREDIT AUTHORIZATION I/We, residing at authorize Financial Rescuers, LLC to request and receive confidential credit and account information from creditors, credit reporting agencies, and other third parties who are involved with my/our credit issues. I further authorize Financial Rescuers, LLC to release a copy of this Credit Authorization to my/our creditors. <= Sign Here <= Sign Here
NOTICE OF CANCELLATION Please retain a copy of this cancellation notice for your records You may cancel the Agreement in writing. To cancel the agreement, Client must mail, via Certified U.S. Mail, a signed and executed Notice of Cancellation to Financial Rescuers, LLC, whose address is noted above.