Debt Negotiation Questions and Answers

Question: Why is the Law Firm able to settle for so much less than other settlement companies?

Answer: 99% of existing settlement companies hire attorneys to facilitate the ultimate settlement of their client's accounts. As a result, most settlement companies charge higher fees to cover both their own expenses and the expense of the attorneys they hire. By working with our organization, you hire the attorneys directly. As a referral service, we don't charge the clients any fees. We are paid directly by the attorneys. Therefore you are cutting out the middle man and saving those extra costs. In addition, because of the specialized legal strategies the attorneys use, they are more effective at obtaining lower settlements for their clients. Lower settlements mean less out of pocket costs to the clients. These savings are passed on to the client. So, overall, under the model the attorneys use, the whole process runs more cost effectively.

Q: How does a Debt Negotiation program work?

A: The Debt Negotiation services offered by the attorneys are in full compliance with Federal and State Consumer Law. The specific legal techniques and strategies used by the attorneys are the proprietary information of the attorneys. So I can not explain those details. What I can tell you is that Debt Negotiation is a common process used by both debtors and creditors to settle a debt for less than what is owed. If negotiated properly on behalf of the debtor it can quickly and dramatically reduce the debtor's debt.

Immediately upon enrolling in the program the attorneys contact your creditors on your behalf and begin the process of auditing your debts and negotiating repayment. As part of the auditing process, the attorneys often uncover consumer right violations that they use as part of the negotiation process to obtain aggressive results.

You no longer pay your creditors directly. All of your debts are organized into one manageable, reduced payment to the law firm.

The end result is that the attorneys negotiation an aggressive settlement on you behalf. As discussed, your financial obligation in order to settle your debts is 30% of the debt you enroll into the program, plus a $39 monthly service fee.

Q: Which types of accounts can I include in a Debt Settlement program?

A: Only unsecured debts, like credit cards. The most common types of debts we see in the program are: Bank Credit Card Debt, Store Card Credit Card Debt, Credit Union Credit Card Debt, Non-Government Issued Student Loans and most accounts in collections.

Q: Which types of accounts cannot be enrolled into the Debt Settlement program?

A: Primarily secured debt. The most common types of debts that are not included in the program are: Mortgages, Auto Loans, Government Issued Student Loans, and Federal, State and Local Taxes.

Q: What is the Catch? What are my responsibilities?

A: There is no catch. Debt Negotiation is a service that is in complete compliance with Federal and State consumer law. However, you do have certain responsibilities that are important to the overall success of this service.
1) It is your responsibility to pay the attorney retainer fee equal to 25% of the total amount of debt you enroll into the program. That fee can be paid over a period of up to 12 months. There is a $39 monthly service fee for each month you are making payments.
2) To some degree you may have to endure phone calls from the original creditor and/or debt collector. Now, according to the Fair Debt Collection Practices Act, it is a violation of your Federal rights if you do receive such phone calls because your debts will be in dispute and they will have been notified that you have attorney representation. However, many of our clients report that they do receive some phone calls. These are the types of violations the attorneys are looking for.
3) You will be provided with a LOG along with instructions to monitor and record certain details related to any calls you might receive from an original creditor and/or debt collector. It will be your responsibility to provide a copy of that Log to the attorneys on a regular basis so they may monitor those violations. It is all part of the process of building your case.
4) You will be instructed to change the contact address with each of your creditors from your own to that of the law firm. That way the law firm can monitor any written communication your creditors may produce. Again, this is a part of building your case.
5) Finally, it is not uncommon for a client that is participating in the Debt Settlement to see a temporary drop in their credit score. Now, according to the Fair Credit Reporting Act, creditors may not threaten your credit rating or report you as delinquent while your account is in dispute. However, many clients report that the creditors do report negatively on their credit report. Again, this is a violation of your Federal rights and will be used by the attorneys as part of your overall case. In addition, included in the service is a premiere Credit Restoration service that will work to restore your credit worthiness.
So, while you do have responsibilities, and you may have to endure phone calls and a temporary drop in your credit score, in the end, your debt will be invalidated and your ultimately cost is approximately 25% of what you currently owe. In addition, if for some reason the attorneys are not able to identify a violation tied to a specific debt, they offer a 100% retainer refund guarantee for the fees related to that particular debt.

Q: Does The Consumer Law Center offer a payment plan?

A: Yes. The minimum initial retainer is $539, and that includes the $39 monthly service fee for month one. The remainder of the 30% retainer fee can be paid in equal installments for up to an additional 11 months. For each month a payment is made, there is a corresponding $39 monthly service fee.

Q: Can I use my credit card to pay for the Debt Relief Process?

A: No. You can pay for the Attorney's services through an Electronic Funds Transfer (EFT) directly from your checking or savings account, or by Money Order.

Q: Can you explain to me the guaranteed provided by the attorneys?

A: Yes. The attorneys provide two separate guarantees to ensure that each client is treated fairly. The first is 100% money back guarantee if within the first 30 days you are not fully satisfied with the services. So, if for any reason you are not satisfied, you simply need to notify the attorneys in writing within the first 30 days and you will receive a full refund of any payments you have made into the program.

The second guarantee is a 100% retainer refund guarantee for any account enrolled in the program for which the attorneys themselves are not able to find at least one violation of your rights to use on your behalf as part of the debt negotiation process. The attorneys will determine violations in accordance with Federal and State consumer laws. Do you understand this?

For example, if you enroll 4 accounts into the program, and the attorneys only find violations related to 3 out of the 4 accounts, you would qualify for a refund of the retainer related to the one account for which a violation was not identified. Not for the other three accounts. That being said, the attorneys have never had to issue a refund because the techniques they use have been successful 100% of the time.

Q: How will this affect my credit?

A: The Fair Credit Billing Act states that while your debt is in dispute, the creditors may NOT report negatively on your credit report. If they do so, they are in violation of your Federal rights and the attorneys will take action against them. So, any short-term negative affect on your credit report would be as a result of a violation of Federal Law on the part of the original creditor.

However, in order to ensure that a client's credit reports are not impacted by this process over the longer-term, the attorneys work with a third party Credit Restoration service provided to ensure the client's creditworthiness is in good standing at the conclusion of the service. The majority of traditional settlement companies do not even include Credit Restoration as part of the service.

Q: Why do you wait 6 months before starting the Credit Restoration service?

A: The credit restoration service is designed to restore your credit worthiness to good standing in the event your score is impacted by the initial debt negotiation service. So, the overall service starts with the attorneys negotiating your debt obligations. Because you are not withholding payment to your creditors, they may report negatively on your credit report. The Credit Restoration service kicks in later to ensure that if your score is negatively impacted by the attorney's services, that the Credit Restoration service restores your credit worthiness back to good standing at the conclusion of the service.

Q: What if my credit score is not negatively impacted during this process, will I still benefit from the Credit Restoration service?

A: Most likely. The Credit Restoration service will work to remove any inaccurate notations on your credit report, whether they are related to the Debt Negotiation service or not.

Q: Should I continue to make payments to the credit card companies once I have enrolled my cards in the Debt Negotiation process?

A: According to the Fair Credit Billing Act, a consumer may withhold payment on any debt that is in dispute, and the first thing the Law Firm does is dispute the validity of your debt. So, it is within your Federal rights to stop making payments. The majority of clients take advantage of this right. If you are already behind on payments, that is normal and does not impact your ability to enroll the debt into the service.

Q: Do I have to enroll all of my cards?

A: No, you can pick and choose the cards that you want to enroll into the Debt Negotiation process. However, you should be aware of the following: Once a card has been enrolled into the service the credit card company will cancel that card and close the account. If you have multiple cards from the same lending institution and you decide to seek relief on one, the lending institution will most likely cancel the others. If you want to keep a credit card open, it is best not to submit any other cards from the same issuer into the program.

Q: Does it matter that I am in collections?

A: In most cases No. Most of the accounts that the attorneys settle are ones that are with third party debt collectors. However, if you have already made payments to the debt collector for a certain debt, the attorneys will have to take a closer look at that particular situation to determine if they can help you.

Q: What sort of action(s) do the attorneys take on my behalf?

A: The attorneys will communicate directly with your creditors and debt collectors via the mail and telephone. They will audit your bills and the collection methods being used by the creditors to determine if your consumer rights have been violated. They will leverage their existing relationships with all the major creditors to negotiate the best possible settlement of your debts. If necessary, the attorneys will sue your creditors on your behalf should a violation of your consumer rights be identified.

Q: What techniques do the attorneys use to reduce my debt?

A: We are not allowed to discuss the specific techniques the attorneys use because it is proprietary information. However, all of the techniques are based off of information that can be found on the Federal Trade Commission's website. If you go to www.ftc.gov and look under the "For Consumers" Tab and then reference the "Credit Cards and Consumer Loans" section you can find more information. In addition, I would be happy to email you a summary of any of the Federal Acts that govern your rights. Acts like the Fair Credit Billing Act, the Fair Credit Reporting Act, and the Fair Debt Collection Practices Act.

Q: How much does it cost to hire the attorney?

A: Cost is one of the wonderful benefits of this service. If you investigate other organizations that claim to help individuals get out of debt, you will find that the fees for the attorney's services are very competitive compared to the fees being charged by non-attorneys. So you get the benefit of having an attorney represent you for typically less than the cost of other services where non-attorneys try to help you.

The attorneys charge 25% of your current total debt under the program, plus a $39 monthly service fee. Keep in mind that the maximum you are likely to pay in total is $0.25 cents on the dollar for all of your debt, and that includes the attorney's fees, plus the monthly service fee. So, with fees included you can expect to only have to pay back around a quarter of what you currently owe.

Q: What does it mean that the attorney negotiates on my behalf?

A: What it means is that with your assistance the attorneys will audit the collection and billing practices of your creditors and debt collectors. Invariably this audit results in the detection of violations of your Federal rights. The attorneys will then use those violations to negotiate aggressive settlements with your creditors and debt collectors. Many times this results in a zeroing out of your accounts as the debt collectors do not want to have to appear in court to explain why they violated a consumer's Federal rights.

Q: Will I have to meet with the attorney?

A: No. You will execute a Power of Attorney that enables the attorneys to represent you. The attorneys will communicate directly with your creditors. You will have telephone access to a Customer Service department should you have any questions. In some instances you may speak with an attorney over the telephone, but you will not have to meet with an attorney in person.

Q: Should I refinance my home to pay off the credit cards?

A: We encourage you to thoroughly check out all of your options. Keep in mind that when you refinance your home to pay off your debts, you are putting your home at risk should you ultimately not be able to make the payments. Debt Negotiation allows you to reduce or eliminate your credit card debt without putting your home at risk.

Q: Wouldn't debt consolidation be a better way to go?

A: We don't think so but it is important that you consider your options. Credit Counseling services are typically not provided by attorneys and result in the repayment of all of the original debt, in addition to interest and fees. The version of Debt Negotiation provided by the attorneys is a legal compliance audit that enforces a clients Federal and State consumer rights to obtain an aggressive settlement on the client's behalf.

Q: I am already in a debt consolidation or other debt settlement program. Can I leave that program and use the attorneys Debt Negotiation service?

A: That is up to the terms and conditions of your current program. I would encourage you to contact your current service provider to determine your options as they relate to canceling your current program.

Q: Can I get in trouble (go to jail), not be able to get my real estate license (or some other license), receive a summons?

A: No, you can't get in trouble. This is a civil issue, not a criminal issue, you can't go to jail for stopping your payments to the credit card companies and seeking a Debt Settlement.

Q: When should I stop using my credit cards?

A: Once you have signed up with The Consumer Law Center and stop making your payments to the credit card companies, it is recommended that you stop using those cards.

Q: What happens when the Credit Card Companies start calling me?

A: Using the Fair Debt Collections Practices Act, a Federal Law, you will notify and demand that the credit card companies not contact you by phone and to only contact you in writing. In addition, you will be given a paper Log to write down certain details of any calls you receive. Should an agent or representative of a credit card company contact you by phone, you will be provided with a simple script to read to them. Reading this script to the individual calling should stop the calls. Should they continue to call they are legally liable under this law. You will provide a copy of the Log to the Law Firm on a regular basis so they can record and monitor any violations.

Q: Can I speak to an attorney? I would like to speak to an attorney!

A: As I mentioned I work for the Attorney Referral Solutions- A Referral Service. We are not the law firm itself. I don't have direct access to the attorneys. However, I have been provided with all of the information necessary to describe their services. My job is to describe to you the services available through the law firm. As a referral service, I am not qualified or allowed to provide legal advice. If you decide to retain the law firm, once your file has been forwarded to them you will be able to contact them and ask them any legal questions pertaining to their services related to your unsecured debt. If you are patient, and you have time, I am sure I can provide you with an accurate answer to any non-legal questions you may have.

Q: I wasn't planning on hiring an attorney.

A: While I understand that you were not planning to hire an attorney, in fact, hiring an attorney is the most legal and effective way to resolve your debt challenges. Most people shy away from hiring an attorney because of cost, or they fear they might have to appear in court. One of the great benefits of this service is the attorney retainer is limited to 25% of the total amount of debt you enroll. If you do your research you will find that this cost is very competitive compared to service like credit counseling and traditional debt settlement. In addition, under the attorney provided Debt Negotiation service you are released from having to repay the actual credit card debt.

Q: When will my payments start being dispersed to pay my different creditors?

A: The attorneys manage all negotiations and financial transactions on your behalf with your creditors. I can not say for certain when those negotiations will be complete. Most cases are resolved within 12 months. However, keep in mind that TO DATE the techniques used by the attorneys have been successful 100% of the time. You should be confident that they know what they are doing.

Debt Settlement Specific (use only if it becomes necessary to explain the Attorneys services in greater detail).

Q: Is it fair for me to pay 25% of the debt I accumulated?

A: That is a good question. Another good question would be, "Is it fair for the creditors to violate a consumer's rights by charging interest and late fees based on a contract they can't produce and therefore can't prove that your fees are valid?"

Keep in mind that the Debt Settlement service is an audit the predatory and deceptive practices of the original lending institution. While you may have incurred the debt, you need to realize that the lending institution extended you the credit in the first place to make money off of you. Not to give you an option in the event of an emergency.

In addition, keep in mind that the attorneys offer a 100% retainer fee refund for any debt that they are unable to identify a single violation. In addition, keep in mind that to date, the Debt Settlement service has been successful 100% of the time.

Q: What does it mean that the attorneys are going to audit the way my creditors calculate my bills?

A: The Fair Credit Billing Act establishes procedures through which errors on a consumer's bills may be disputed. It is not uncommon for math errors to be found on a bill. Particularly errors in calculating and applying the interest rate. The attorneys will audit your bills to determine if any errors have taken place. If they locate errors, the attorneys act on your behalf to have the bills corrected.

Q: Is Debt Settlement Legal?

A: Yes. Debt Settlement is a legal process whereby qualified attorneys reduce or eliminate debts that cannot be validated or are the subject of Federal and/or State violations on the part of lending institutions and debt collectors.

Q: IT Sounds To Good To Be True?

A: I assure you that it is true. I recognize that upon first hearing about Debt Settlement and the related benefits that it may sound too good to be true. But that opinion in and of itself assumes that the lending institutions and debt collectors care that the debt is invalidated. Let me explain a few things. First of all you have to realize that this is all just business as far as the lending institutions and debt collectors are concerned. They do not have the emotional association with the debt that you have. Approximately 40,000 debts are charged-off every month in the United States alone. While that may seem like a large number to you, it is only a fraction of the amount of debts that continue to be repaid.

Second, your opinion that it is to good to be true assumes that the lending institutions and debt collectors lose financially when the debts are Invalidated. When a debt is "charged-off" by the original lending institution, that institution receives numerous financial benefits. First of all, they are able to take a dollar for dollar tax deduction for the total amount of the debt, including the fees and interest charges that have accumulated. So that benefit alone breaks them even financially. Second, they receive a tax free insurance benefit equal to three to four times the amount of the Invalidated debt. Finally, they are compensated when they sell the debt to a third party debt collector. The end result being that the original lending institution receives more value when the debt is invalidated and charged-off than the value they would have received had the debt been paid in full at the time of the charge-off. So, can you see how from a business perspective, a lending institution doesn't think twice but to charge-off the debt and send it to a collection agency?

Now, the third party debt collectors buy the debt from the original lending institution for pennies on the dollar. For example, the debt collector might pay $100 for a $10,000 debt. The debt collectors knowingly violate Federal laws in an attempt to collect on the debt. When the attorneys challenge the debt collectors, the debt collectors know that they are caught between a rock and a hard place. If they fight back against the attorneys, they will incur significant attorney fess whether they win or lose. So, rather than incur thousands of dollars in attorney's fees over a debt they paid $100 for, they write the debt off and move on to the next client that does not have attorney representation.

So again, while it may seem to good to be true, this is happening every day simply as a matter of doing business.

Q: How are the attorneys able to Invalidate my debt(s)?

A: The attorneys are experts in Federal and State consumer laws. These are the laws that govern the credit card companies, lending institutions and collection agencies. In many cases a consumer's Federal rights are being violated on a regular basis and the consumer simply doesn't know it. Whether it be the inability to produce a contract, a miscalculation of the interest on your bill, or the methods a collection agent uses, the attorneys identify these violations and aggressively use them to negotiate on a client's behalf. The creditors and debt collectors don't want to go to court to try to explain why they violated your rights, so they make the smart business decision to settle the account.

Q: What is the Fair Credit Billing Act?

A: The Fair Credit Billing Act establishes procedures for resolving mistakes on credit billing. For example, if you are billed twice for the same purchase, or if your interest is calculated incorrectly, you can write a letter to dispute the error, and the creditor must resolve the dispute within 90 days. The attorneys will be auditing your bill to determine if corrections are necessary.

Q: What is the Fair Debt Collection Practices Act?

A: The Fair Debt Collection Practices Act requires that debt collectors treat debtors fairly and prohibits certain methods of debt collection. For example, a debt collector may not contact you at work if you tell them your employer disapproves of such calls. That would be a violation of the law.

Q: What is the Fair Credit Reporting Act?

A: The Fair Credit Reporting Act Promotes the accuracy and privacy of information on your credit report. For example, consumers have the right to receive a free copy of their credit report once every 12 months to review it for accuracy. That gives consumers an opportunity to make sure their report is accurate. If you want a free copy of your credit report, go to www.annualcreditreport.com

Q: Does the Debt Settlement process affect my ability to refinance my home loan?

A: It is recommended that you do not begin the Debt Settlement service until after your refinancing is complete. The reason being is that despite the fact that according to the Fair Credit Billing Act the creditors may not report negatively on your credit report in relation to a debt that is under dispute, in many cases that law is violated and negative notations are placed on your credit report. This is precisely the type of violation the attorneys are looking for. So, since it is possible your credit score may be temporarily affected by the Debt Settlement service, it is recommended that you refinance prior to engaging in the service. That way the service can in no way affect the terms of your refinancing.

Q: Is Bankruptcy a better alternative to Debt Settlement?

A: Possibly, depending on your circumstances. However in most cases it is not because bankruptcy has a long term negative impact on your credit worthiness and can be a demoralizing process. In addition, the new bankruptcy laws make it almost impossible to put credit card debt into a bankruptcy filing. Bankruptcy is a huge step with implications that will last for many years, so check it out with caution. We do not give legal advice so if you are considering bankruptcy you should see a bankruptcy attorney.

Q: How Effective Is Debt Settlement?

A: To date the techniques the attorneys use have worked 100% of the time.

Q: I am concerned about the legitimacy of your program.

A: Then I must not have explained the program properly. The bottom line is you can't get anymore legitimate than enforcing the laws that are established to protect the consumer. Debt collectors know that the majority of the consumers that can't pay their credit card bill are vulnerable and in no position to hire an attorney to protect their rights, but now they can.

The Debt Settlement service is provided by attorneys based on laws granted by the Fair Credit Billing Act, the Fair Debt Collection Practices Act, and the Fair Credit Reporting Act. Summaries of these acts are available on our website at www.AttorneyDebtGroup.com and on the Federal Trade Commission website at www.ftc.gov

Finally, Jeffrey Campos, the lead attorney performing the Debt Settlement service, is a Member In Good Standing with the Florida Bar Association. Refer the prospect to www.FloridaBar.com - tell them to click the "Find A Lawyer" link at the top of the home page. Enter "CAMPOS" as the last name and "Jeffrey" as the first name in the search form. They can view Jeffrey Campos' membership.

Q: What is a Consumer Protection/Advocacy Law Firm?

A: A consumer protection/advocacy law firm is a group of lawyers that specialize in consumer rights and specifically represent and defend consumers against potential and actual violations of their consumer rights.