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Debt Resolution Process
Hello, and welcome to the audio overview for the Debt Resolution Process. We are excited to offer you assistance in what we believe is the safest and most effective consumer debt relief process available today. This process has been used over the last seven years to help people offset thousands of accounts, to the tune of millions of dollars. And just to make things clear, we work for YOU! We do not work for your creditors, your bank or your credit card company. This is NOT  debt consolidation, debt settlement, debt reduction, mortgage refinancing, bankruptcy, or some other payment plan that can drag on and on. These other processes can easily last up to 7-10 years. If you know that you need help dealing with your debt, we encourage you to consider this option. It's an 18 month process, and you will find it hard to discover anything else that helps you keep this much money in your pocket while easing the burden of your debt.

What we do is quite simple, yet very effective. We actually work with you and become a part of the picture through assignment of your debt to us. This doesn't mean that the debt is no longer yours. It means that we are involved with you, and our name is now on the dotted line along with yours. We then apply the principles of Consumer Protection Law and basic Contract Law to make the Agreement or Contract with the creditor more favorable for you. Most types of unsecured debt can go into the process: major credit cards, signature loans, store cards or gas cards, business or personal!

When you pay for your enrollment fee and submit your paperwork, you also provide us with enough money to make one more minimum payment on each account with the original creditor, plus an additional $43 dollars per account with the original creditor as well. These are one time payments, and you use 2% of the balance on an account as your minimum payment. The exception is that if 2% of the balance is less than $50, you need to bump it up to $50 so we can show a substantial payment. So for an example, if you have a balance of $10,000 on an account, your 2% payment would be $200, so you would provide that amount plus an additional $43. Again this is a one time payment. We use the 2% as consideration to offer a new contract on the account, and use the $43 as performance payments over several months. These payments are sent to us at the same time that you fill out your paperwork and send the enrollment fee to get started. If an account is with a collection agency and no longer with the original creditor, you don't need to provide the 2% payment or the $43 per account. We will still work on the account to make the debt go away, but we use slightly different methods that don't require those payments.

We mainly focus on the principles of Contract Law. Here's how it happens: You're probably aware that in the contract you have with your credit cards, there is a clause that says they can basically change the terms and conditions whenever they want to - right? Well, what's good for the goose is good for the gander. What we do is offer a new contract that changes the terms and conditions so they're better for us, rather than being only good for the creditor.

When you are filling out the paperwork to get started with us, get out your credit card statements as well. Let's say you have one from XYZ bank. Remove any ads, but send us the entire statement, unmarked, with the return payment envelope, along with the other forms we require. When we receive your statements along with your payment, we'll deposit your check made out to us. We use one of our own checks written to XYZ Bank for the 2% payment. When we send it to them, we also include an offer of new terms and conditions, so they can agree to the new contract. We've done this for years with literally thousands of accounts, and yes, they do accept the new contract. Here's another way to understand this: I'm sure at one time or another you've gotten a check in the mail, probably out of the blue, for $10, $20 or $50 that on the back where you endorse it there's fine print that says "if you cash this check then you are agreeing to this or that", whatever their service is. This is basically the same idea, except we're doing it to them instead of them doing it to us. Once they cash the check, they have accepted the consideration and are agreeing to the new terms and conditions.

Those terms and conditions, that new contract, is what helps us to then resolve and/or offset the debt, and it works because it's something that the creditor actually agreed to. The contract that governs the account now says that the interest rate is 0%. It says that the minimum monthly payment is now $8-$10 a month. It says that they are not allowed to charge any late fees, that they are not allowed to put any negatives on your credit report, and that if they ever HAVE put any negatives on your credit report, they have to take them off. So there is term after term that's now in our favor rather than theirs. The new contract also says that if they BREAK any of the terms, they agree to a financial penalty of anywhere from $500 - $2500 per occurrence. You know how right now if you send a payment late to your credit card company, then they'll charge you a late fee? You're paying a financial penalty because you broke the terms of the contract. Again, this is exactly the same thing except they are getting a taste of their own medicine, and we can do it because they agree to the new contract. The main goal of this procedure is to offset the debt. Because even though they accept the new contract and perform on it, they'll probably act as if they are still under the old contract. And even though they accept the new contract by cashing the check, when the next statement comes out, it's probably going to show that they are asking for more than the $10 minimum payment, that they charged a late fee, and are asking for more than 0% interest. According to the new contract, they just broke the new terms three times on that one statement, so we are able to apply three penalty fees. For the next several months, we'll be able to use that $43 you provided to send them small payments every month. And based on past experience, every time they send out a new statement, there will be likely three or four contract violations on there, so those penalty fees are applied over and over. Please understand that when we take on the account, you are simply paying us to act on the debt for you by assigning it to us. We will continue to make payments, as long as necessary or there is a balance to offset.  And again, the credit card company has agreed to this, but they simply don't follow the contract. When we take on the account, even though it may have a balance of $10,000, after 4-6 months, because they keep breaking the terms of the new contract, they will end up owing us several thousand dollars. We could go after them for that amount, and who knows - in the future we may, but as of now we don't. That isn't the point. The point is to get rid of the debt by offsetting that amount, and we can use the money they owe us as further leverage to retire the account.

Realize that contract law boils down to the very basics. There are four parts to contract law - the offer, the terms, the acceptance, and the performance. We've made an offer of a new contract. The terms and conditions are spelled out right in front of them, and the acceptance is when they cash the check. From that point on, every time they send a statement to us, and every time they accept a payment from us, they are showing a performance on the new contract. We also show performance every time we send those small payments each month. So now we have a contract that is spelled out, that both parties have accepted, and that both parties have been performing on for months. Go ask any judge or lawyer and most all of them will tell you that it's pretty cut and dried at that point. It's a valid contract, and it's too late for either one of the parties to come back and say "Wait, I didn't really want to have that term in there".

The way we used to do this was to provide the clients with all the letters and forms and the client would change their own terms and conditions and so forth with our help and support. What we found was that with some of the accounts, the credit card company was bringing a lawsuit against the client. They didn't really have a legal leg to stand on - it was pure intimidation - but even though we would walk someone through what to do, most people didn't want to deal with fighting a lawsuit, even though they were in the right and could expect to win. That's why we switched to handling everything for the client and taking on the debt with you. Now, if the credit card company tries to use intimidating tactics and serve a lawsuit, we can normally prevent that from happening! And on the rare occasions where a lawsuit happens, you can still keep a lot of money in your pocket by settling it or fighting it. The contract now shows that THEY are the ones that are in violation of the contract, not you. If they sue with that situation and you choose to fight it, you have a legal defense and the leverage is on your side, not theirs. The creditors also generally realize this, so a lawsuit is simply not something you should have to deal with or fear being faced with.

You should probably allow 6-8 months for the debt to be offset.

If the account is with a collection agency, we use consumer protection law. We dispute the debt, which means they are then required to give proof that they are entitled to the money. They aren't - they bought the right to collect on the debt, but that does not mean you have the legal obligation to pay them anything. You've never had a contract with the collection agency. They've never provided you with any goods or services, and they can't show any consideration toward establishing a contract. So with a collection agency the method is different but the end result is the same - the debt typically goes away.

There are two things you should be aware of:
1) You will get collection calls; that's just part of the process. Remember, we usually will send the first payment late when things get started. When collectors start calling, most people just ignore the calls because they have caller ID, but if you want to minimize the calls, pick up the phone and tell them "I'm sorry, but I can't talk right now. Send it to me in writing" and then hang up on them, even if they are still talking! We recommend you do not talk to the collectors.  You don't have to talk to them and there is little good that can come from it. They are just there to intimidate you, to scare you, and to try to trip you up and get you to say something that they can try to use against you later, so again - we recommend that you do not talk to the collectors. Tell them that statement and use caller ID to screen your calls. When you get something in the mail about one of your accounts, whether it's a statement from the creditor or a letter from a collector, just put it in a bigger envelope and send it to us immediately so that we can address it. Remember that even though we can offset the debt, that doesn't mean the creditors don't want your money. It just means they no longer have a legal right to the money.

You may also get calls when the bank sells the account to a collection agency down the road. Again, this is normal. Our process won't stop accounts from going into collections. However, on the accounts that we have been able to offer a new contract, we can show that legally there is no debt to collect after we've been able to offset it. Just tell the collection agency the same statement, "I'm sorry, but I can't talk right now. Send it to me in writing" and hang up, even if they are still talking. They are required by law that whenever they take an account, they have to send a collection letter to you within 10 days. When you get it, just forward it over to us for a response to be sent. Within a couple of weeks, you shouldn't hear from them again.  So again, your role is simple, but very important; send to us anything you get in the mail - statements, letters - anything.

2) Expect negatives on your credit report. Now remember that putting negatives on your report is against the terms of the contract, but also remember that one of the main reasons we are successful in the first place is because they don't follow the new contract. They will usually still act as if they are still under the original contract, and we let them do so until the penalties have offset the original debt. That means that they are incorrectly reporting that fees are racking up and that you are behind on payments, when under the new contract that is actually not the case. So after you have sent us all of your statements with your payment, go forward on your calendar about 10 months and put an 'X' there. When that day comes, pull a separate credit report on yourself from all three of the agencies and send them to us. From there we can determine that the accounts are offset and apply the rest of the penalty fees to the creditor. As for the negatives on your credit report, if you can show that something on your credit report is a mistake, it's against the law for the credit reporting agencies to leave it there - it has to be removed. We can give you the documentation and instructions you'll need to show the credit reporting agencies, or we may assist you in the process, or refer you to another company that can help you. So allow about 10 months from when you get started for the debt to be offset and you can begin to work on strengthening your credit.

That's pretty much it. Thank you for taking time to listen and explore your options to resolving your debt.  We wish you luck in whatever choices you make, but we sincerely believe that there is no other process of debt relief available that will help you keep this much money in your pocket.  We encourage you to get back to the agent that referred you to this call. They'll be able to tell you the enrollment fee for your situation and answer any questions you have. Thank you.

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Debt Relief Comparison Chart Report

There Are Many Ways to Handle Outstanding Debt

CONTINUE TO PAY NORMALLY: If you continue to make minimum payments on your accounts, you will generally pay for 20 – 25 years, and you will end up paying 3-4 times the account balance, depending on your interest rate. Example: With a $50,000 total debt, you’ll generally end up paying $150,000 - $200,000.

JUST STOP PAYING: If you aren’t able to continue to make your payments, you’ll face collection action, typically ending in a lawsuit from over 50% of your accounts. Since you simply stopped paying, you generally have no defense against lawsuits, resulting in multiple judgments.

BANKRUPTCY: Bankruptcy is on the public record forever. You must disclose your bankruptcy on many insurance applications, job applications, lease applications, loan applications, etc. The cost to file bankruptcy can range from $1,500 to $3,000, and sometimes more.

If you can qualify for a Chapter 7 bankruptcy, your debt is wiped out, but due to changes in bankruptcy laws in October 2005, the vast majority of people are forced into a Chapter 13 bankruptcy, which is a court-ordered repayment plan. In addition to the $1500 to $3000 in costs to file the bankruptcy, you still typically pay 80% to 100% of the debt over the next 3 to 5 years, by making your payments to the trustee of the court, who then pays your creditors. In effect, Chapter 13 bankruptcy is as if all of your creditors decided to sue you, all at the same time, and they all won judgments. Example: With a $50,000 total debt, you would generally be required to pay back at least 80%, which would be $40,000. If your fees to file the bankruptcy were on the low side, say $1,500, your total costs would be at least $41,500 plus possible interest.

CONSOLIDATION/COUNSELING: This is looked upon by banks to be almost as bad as a bankruptcy, since you had to bring in a third party to help with your finances. By law, credit counseling services must be nonprofit. Also, by law, they can’t do anything to actually lower your debt balances. They are only allowed to negotiate with the creditors to lower your interest rates. They may get the interest rate reduced, but you pay the debt back in full with interest. You send a payment to the consolidation company each month, and they pay your creditors from that, which is much like how a Chapter 13 bankruptcy works. The payments are stretched out usually over 3 to 5 years. Example: With a $50,000 total debt, your total costs would be $50,000 plus the interest and fees.

SETTLEMENT: These programs take 3-5 years. They will generally charge 10% to 15% of the total principal as their fee, and then they settle each account for about 40% - 50% of the total debt. Your out of pocket costs generally come to 60% of the total debt, at least, and usually more. Payments are typically spread out over a period of 36 to 60 months. If a creditor sues you, you have no legal defense, as you are in default on your contract. You are also obligated to pay income taxes on the amount of forgivendebt. Example: With a $50,000 total debt, your enrollment fee would generally be $7,500 (15%) and the settlement amount, if it were on the low side, would be about $22,500 (45%), for a total of $30,000, plus taxes on $27,500 additional income.

DEBT RESOLUTION WITH CONSUMER ADVOCATE SERVICES
(our program): Program takes 18 months. You can get rid of up to 100% of the unsecured debt for a cost of $3000 and one more minimum payment of 2% of your balances plus $43 per account. Example: With a $50,000 unsecured debt and five accounts, the enrollment fee would be $3,000. Your minimum payments would come to $1,000 (based on 2% of the total debt). You would also pay $215 (which is $43/account for five accounts) for TOTAL COSTS OF $4,215.

Note: In the case where the accounts are no longer with the original creditor but are now with 3rd party debt collectors, the minimum payments and $43 payments are not required; only the enrollment fee of $3000.

Debt Resolution Comparison with Settlement: Person with $20K: Settlement - will pay $3K enrollment, plus 45% of balances ($9K), plus taxes on what is forgiven (10% tax rate would be $1,100) = $13,100 CAS - $3K enrollment, plus 2% and $43/account ($400 + $215 for five accounts) = $3,615 – Savings over Settlement of $9,485

Person with $40K: Settlement - will pay $6K enrollment, plus 45% of balances ($18K), plus taxes on what is forgiven (15% tax rate would be $3,300) = $27,300 CAS - $3K enrollment, plus 2% and $43/account ($800 + $344 for eight accounts) = $4,144 – Savings over Settlement of $23,156

Person with $80K: Settlement - will pay $12K enrollment, plus 45% of balances ($36K), plus taxes on what is forgiven (20% tax rate would be $8,800) = $56,800 CAS - $3K enrollment, plus 2% and $43/account ($1,600 + $430 for ten accounts) = $5,030 – Savings over Settlement of $51,770