Free Credit Counseling

The Power Of Debt Validation

Recently I had occasion to see with my own eyes the power of knowing how to enforce your legal rights when it comes to debt. Debt Validation being one of your rights.

I am often asked, exactly what do you mean by Debt Validation? Well, debt validation is a legal term. In simple terms, it requires that a creditor produce original documentation to support his demand for payment of the debt.

Really, it goes something like this: You borrow 1000.00 dollars from Uncle Vito, the neighborhood loan shark, at lets say 25% interest. Next thing you know, somebody with the nickname "Fats" shows up at your door looking to get paid on the loan you made with Vito. You tell Fats that you made a deal with Vito, and he never told you to pay Fats. So, unless Fats produces some proof that Vito told him to pick up the money for him, you will not pay. You need Fats to produce some original documentation, not some made up copy. This would be a simple form of requiring "Debt Validation".

That's why when a debt collector sends you a notice of demand for a payment, for the first time, they are required to tell you that you have the right to "Have the debt validated”, and if you enforce your right by requesting it, they will send it to you in 30 days. Now usually, what they send you does not constitute a "legally validated debt". If you truly understood the scope of what is required for them to provide to you, you might even be able to eliminate the debt.

Going back to the first paragraph, in which I said I have recently seen a letter from a major creditor, a credit card bank, in which they were unable to validate the debt on a 17 year old credit card. The most important part of the letter is the following” Please be advised we are not able to forward a copy of the original credit card application as the card was opened 17 years ago. Accordingly, we will cease collection efforts immediately". The debt effected was over 15,000.00 dollars. Gone, because someone knew enough to request the right thing.

The validation idea holds true basically, for any type of debt, including Mortgage notes! Yes, that’s right, chances are your mortgage has changed hands many times and many times the original Mortgage note cannot be produced by the bank. They cannot foreclose on your home, unless they can produce the original "Mortgage Note" signed at the closing, a copy will not suffice. The courts are starting to hear more and more cases on these foreclosure actions, and upholding this principal.

So, once again, knowledge is power, and self empowerment will keep you from debt slavery, which is the mission of American Debt Enders. If you are interested in information about a very powerful Debt Settlement/Debt Validation Program, call us at 877-766-2465 for a free consultation.

If you enjoyed this newsletter article, please feel free to subscribe to our FREE Newsletter, by visiting: FREE CREDIT COUNSELING NEWSLETTER

Written By:
Steven Ciantro
Member National Association of Certified Credit Counselors
American Debt Enders
help@americandebtenders.com
877-766-2465

Debt Settlement Viewed Positively By Noted Academics

A very recent study by noted economics professors Dr. Bernard L. Weinstein, Ph.D, and Dr. Terry Clower, Ph.D. entitled Debt Settlement, Fulfilling The Need For An Economic Middle Ground, points out the true value of Debt SettlementPrograms.

I say Bravo to these professorsfor taking an unbiased look at such a maligned industry and reporting the truth. As pointed out in the paper,which I highly recommend anyone considering a debt settlement program read, Credit Counseling programs, or operated by non profits do not reduce the overall debt, nor do they tend to reduce the monthly payments required to meet minimum payments, and when so many households are running upside down in their budgets, this presents a real problem. If the money to make the minimum payments cannot be found, even after the most strenuous cuts in expenses, then this option is no longer viable.

Debt settlement companies can help consumers avoid a bankruptcy filing, which can impair credit scores for many years. And unlike bankruptcy, the consumer does not have to turn over all of the household’s nonexempt assets to a bankruptcy trustee. (Source: taken directly from the Weinstein paper)

Debt Settlement also involves consumer education regarding creditor rights. To often today consumers have no idea of what there legal rights are as debtors, and consequently, come under serious abuse by third party collectors. Also, debtors are able to make affordable budgets for the first time in a long time, so that secured debt payments can be handled. Consumers can begin to get back on track, as they see a light at the end of the tunnel. Plainly speaking, an end to debt slavery.

So, if you are considering a debt settlement program, I advise you strongly to shop around. There are bad players in every industry. I recommend you look for a program that will have attorneys represent you if you are sued by a creditor during the process. It also, is better to be in a program where before any settlement is made on your behalf, the debt is validated legally. If a creditor cannot VALIDATE your debt according to State and Federal laws, then you have defenses.

If you enjoyed reading this article and know someone in a serious debt situation, by all means forward this article to them. Also, feel free to subscribe to our FREE CREDIT COUNSELING NEWSLETTER.

Remember, Debt Freedom is Self Empowerment.

Written By: Steven Ciantro
Member National Association of Certified Credit Counselors
American Debt Enders
help@americandebtenders.com
877-766-2465

Questions To Ask Before Enrolling In A Debt Settlement Program

As most of you know I am Certified by the National Foundation of Credit Counselors. (NFCC). In the world of credit Counseling this is considered the "IT" certification. Posted on their website NFCC-Questions To Ask When Considering Debt Settlement is information about debt settlement programs and a list of questions to ask a debt settlement company before enrolling. Here is a list of the questions, and following each question is their question and my comment. I think you will find it very helpful, especially if you or someone you know is considering debt settlement to become debt free and avoid bankruptcy.

· Review the company’s record with the Better Business Bureau as well as there state Attorney General or Commissioner of Banking.

My Comment: Do not be hung up if the company is not a BBB member. The BBB logs complaints against all companies, whether or not they are members. You can also try a google search like "Complaints against XYZ company". If you see complaints, ask the counselor directly about them.

· Select a company that is affiliated with an industry trade association which holds members accountable through accreditation.

My Comment:Many Credit Counselors work as small companies. Affiliation is good, however, realize that, for example, a membership can be expensive, TASC, which is the Association of Debt Settlement Companies, costs 250.00 dollars per month. A company can follow TASC guidelines, without being a member.

· Confirm that the account holding your deposits is FDIC-insured.

My Comment:This is a good question, but an additional question might be if funds are held in an attorney escrow account is that account protected?

Obtain all disclosures in writing, including a good faith estimate of costs associated with the settlement.

My Comment: This is absolutely essential. You need to be provided in the agreement itself, a breakdown of exactly how much money is going to escrow for settlements and how much for fees. What is the dollar breakdown not just an overall pecentage.

· Inquire about refunds of any money on deposit should you wish to drop out of the program.

My Comment: Generally, many good companies will breakdown how the fees are earned and the pro rated return policy. All funds held in an escrow account mist be returnable to the client-since it is your money set aside for settlements, period. Also, a good settlement company or settlement lawyer will apply you fees to a bankruptcy proceeding should things change and you find yourself having to file a bankruptcy after the program has been underway.

· Be cautious about promises or guarantees that seem unrealistic.

My Comment: Make sure what you are told is stated in plain language in the agreement. Very simple. Most settlement companies will not represent you if you are sued by a creditor before the account is settled. Make sure you know how that issue will be handled should it occur. This is a very important point Do not gloss over it. You should not have to ask many of these questions, a good program will give you the answers before you ask.

Have more questions? We have answers. We also have an extraordinary debt settlement/debt validation program which may well be the best ever. If you would like to know more, simply visit: DEBT SETTLEMENT WITH VALIDATION. While you are their please feel free to subscribe to our FREE, Credit Counseling Newsletter.

Written By:
Steven Ciantro
Member National Association of Certified Credit Counselors
American Debt Enders Help@americandebtenders.com
877-766-2465

Debt Settlement With Debt Validation-A powerful tool.

OK, so most people are familiar with the standard debt settlement program. But, are you familiar with a settlement program that demands debt validation, and strict compliance with the Fair Debt Collection Practices Act, and other powerful consumer laws, to put the collectors on their heels, before talking settlement?

How about a program that’s not really a program, but rather the hiring of attorneys who are very familiar with comsumer credit law and, if you are sued while working out the debt, will actually represent you.

What about those extremely annoying creditor phone calls while you are trying to put money together for a settlement? Most settlement companies, say simply, do not speak with your creditors, and that is fine, but it does not stop the calls. Did you know that when a debt validation is requested, that the creditor cannot call you unless and until they are able to meet the legal requirements of validating the debt--or proving absolutely that you owe what they say you owe.

Did you know that legally, if a creditor cannot validate a debt, that you do not owe the money?

How about this one: Did you know that a creditor cannot put negatives on your credit report after you have requested a debt validation, and until and unless they actually validate it?

As you can see you have plenty of rights when you are in a debt crises. Please do not misunderstand what I am saying. I am not suggesting that you stop paying your bills and start playing games. I am saying that if you cannot pay your unsecured debt payments, and the banks will not be reasonable with you, then their is another way.

Want to learn more? Please call us at 877-766-2465, or visit us at:American Debt Enders and leave your contact information. This program is absolutely affordable and works because of its quality.

If you would like to subscribe to this newsletter, feel free to visit: FREE CREDIT COUNSELING NEWSLETTER and leave your email address. We never share your information.

Written By:
Steven Ciantro
Member National Association of Certified Credit Counselors
American Debt Enders
help@americandebtenders.com
877-766-2465

Debt Settlement vs. Credit Counseling, The Facts.

The following, regarding the differences between Credit Counseling and Debt Settlement as debt solutions, is taken from an article appearing on the TASC website. The full article can be read by visiting: Tasc Article. For those of you who are not aware, TASC, The Association of Settlement Companies,is a non-profit organization devoted to maintaining high standards in the settlement industry, and highly thought of.

So, lets get beyond all the hype and really take a look at which program has better outcomes. From the article: TASC, the non-profit watchdog organization for self-regulating the debt-settlement industry, gathered the information from various sources, including the Consumer Federation of America and National Consumer Law Center, the Executive Office for the U.S. Trustees and testimony by credit counseling companies. Indeed, all credible sources.

As I have often pointed out, the main difference in the two approaches is that debt settlement companies work only for the consumer, while non-profit credit counseling works in the interest of the banks and credit card companies. As such they are usually only able to obtain lower interest rates, as pre-established by the banks.

Additionally, settlement companies do not receive any fees from the credit card companies or banks, they are solely paid by the consumer. Where as non-profits are supported almost totally by the banks they serve, by being paid what is called "fair share" or a percentage of all the money that flows through them.

Debt settlement programs are typically 36 months or less, while credit counseling programs are 60 months or more.

One of the big drawbacks of credit counseling programs is that the monthly payments are fixed and many times, even a bit higher than what the consumer was paying on their own. Debt Settlement, however, affords the ability of a customized repayment plan, to fit the consumers budget.

Because of the lower payment option, and shorter duration, settlement often has a higher probability of program completion than credit counseling.

So, which program is a utopia? Neither. Getting out of debt is never easy. However, the key is if you are going to do a structured program at least understand the real ins and outs of each, so your decision is not based on what the propagandists are saying.

If you would like to speak with someone who is knowledgeable and can present both options to you, and make full disclosure about each, then please visit: American Debt Enders. and while you are at the site feel free to subscribe to our Free Credit Counseling Newsletter. Written By:
Steven Ciantro
Member National Association of Certified Credit Counselors
American Debt Enders
help@americandebtenders.com
877-766-2465

FTC-On Benefits Of Debt Settlement

Their has been a long standing perception that the FTC has only a negative view of debt settlement companies. With so much misperception and negative press, allow me to try to put things into perspective. Commissioner Rosch of the FTC has taken the following view:

a debt settlement firm can advocate on the consumer’s behalf, especially in cases where consumers are reluctant, embarrassed, or even afraid to contact their creditors directly,” Commissioner Rosch said to the conference attendees. “A debt settlement firm also may be able to provide individualized attention to consumers, taking a holistic approach to all of the consumer’s unsecured debt owed to several creditors, rather than just the amount owed to a particular creditor.

“Managing the complete debt picture and focusing on restoring the consumer’s financial health has always been a critical value proposition of debt management professionals–nice to hear it from the FTC.

In Addition, the commissioner gave the following "best practices" suggestions to the industry:

“limit their performance claims to those they can adequately Substantiate”; not “misrepresent the benefits of debt settlement”; “disclose, clearly and conspicuously, the negative impact that participation in a program may have on a consumer’s credit score, and how long that impact may linger. This disclosure should not be made only in the written contract, but in the ad itself”; and “if a debt settlement firm promises to refund debt settlement service fees to consumers if their debt settlement negotiations are unsuccessful, the firm must honor that promise.”

Additionally, the Commissioner indicated he was not impressed with attempts at self regulation, by the industry as a whole. The above items from an article at the following link: Real Benefits on Debt Settlement Industry.

The National Foundation For Credit Counseling estimates a completion rate for Debt Management programs among its members to be 21%, the rate for successful completion of a good debt settlement program is often double that.

So why so much negative publicity about debt settlement? First, in my opinion, when the sub-prime mortgage business ended, many unscrupulous mortgage brokers found a new career, it was debt settlement. They were not trained to be counselors, only sales people, looking to close deals. Any deal would do. The same way they approached mortgages, they approached their new found careers in settlement. No full disclosure, no truth in advertising, just get the deal done.

Second, their will forever be a battle between non-profit Debt Management Companies, and Debt Settlement Companies, and for profit companies. Non-profits are controlled by the banks, and get paid a percentage of what their clients pay, by the banks. Additionally, the banks control and dictate the terms they are able to offer their clients. Debt Settlement directly competes with them.

I do agree that to many debt settlement companies simply do not do the right thing, which has tarnished the entire industry. Consumers need to be very careful when choosing a settlement company, or even any debt management company. Make sure you are being counseled and not pushed, or sold, or pressured.

If you would like to speak with a counselor, please visit:American Debt Enders.

If you enjoyed this article and would like to subscribe to our FREE, Credit Counseling Newsletter, please do so by leaving your email address at: CREDIT COUNSELING NEWSLETTER.

Written By:
Steven Ciantro
Member National Foundation of Certified Credit Counselors
American Debt Enders
help@americandebtenders.com
877-766-2465

If You Are In A Debt Crises-The Following Article Is A Must Read!

Sorry, it has been so long between posts. I have been l ooking for just the right topic. Make no mistake with the mountain of unsecured debt that has built up over the last 10 years, the debt collection industry is experiencing a revitalization. Their is no recession in this industry.

As proof I put forward the following email which found it's way into my inbox. As you can see it is meant to provide aids to debt collectors for going after you. You need to know what you are up against if you choose to ignore your debt problems.

Here is the unedited email-it is from a company called "Columbia Financial International". -www.casetrackerlaw.com: The best web-based collection Attorney & collection agency software managing program. Technology that will help you get clients.

Ever wonder how they get your cell number?

-www.celltrackerusa.com: Locate cell phone numbers for debtors; no hit/no fee 50¢ per hit. -

You really have to love the next one.

www.privateeyeverify.com: Professional licensed investigators will hand your demand letter to the debtor, take pictures and put you on the telephone to discuss payment. Click here for information and sample reports. Great for large commercial files your debtor will know you are serious!

This next one is for those of you who are inclined to sue for collection harassment.

www.columbialist.com/webrecon: Stop FDCPA complaints cold. This subscription will save you thousands of dollars.

www.claimforwarders.com: Free electronic collection claim forwarding software. Use our contingency collection attorneys or put in your own. Feature highlights: give a pass code to your client to send your collection files free.

And last but not least

The Columbia Store: Over 500 accessories, books, legal items, novelties & more.

Did you ever wonder how they find your bank accounts?

www.findbankaccounts.net: No hit/ no fee. Bank account and employee locator, 60 day guarantee. All information verified or hit replaced!

Yourvirtualspokesperson.com: Send out emails with virtual spokesperson presenting your company.

www.Top-Ten-Marketing.com: Top-Ten-Marketing is a member benefit to the "The Commercial Law League of America" and the official web provider for "The Commercial Collection Agency Association". When someone needs a provider they go to the internet...Be there! 20% off web design & search engine top placement agreements.

And finally:

www.debtsellers.us: We sell receivables and we buy judgments!

Their you have it. If you had any doubts about what you are up against, hopefully, this article has put them to rest. They are organized, so you need to be organized.

If you need Free credit counseling and want an evaluation of your options for getting out of debt, whether Debt Settlement, debt management or as a last resort, bankruptcy. Then you need to contact: American Debt Enders. They are organized so you need to be organized as well.

To subscribe to this simply click FREE CREDIT COUNSELING NEWSLETTER and click the "Subscribe Now" button and leave your email address. We promise we will never share your information, or spam you. Written By:
Steven Ciantro
Member National Association of Certified Credit Counselors
American Debt Enders
help@americandebtenders.com
877-766-2465

Why Debt Settlement Over Bankruptcy? Choose Wisely.

If you are considering Bankruptcy instead of a Debt Settlement Plan, make sure you are aware of the advantages and disadvantages of your decision. If Bankruptcy is the only option for you, then you should seek legal advice from a bankruptcy attorney.

The following information is not intended to be legal advice; rather it is just an overview on the basics of the 2 most common bankruptcy types.

There are 2 different types of bankruptcy that a client may consider: Chapter 7 or Chapter 13. On October 17, 2005, the bankruptcy code was revised by the “Bankruptcy Abuse Prevention and Consumer Protection Act.” [BAPCPA] This revision was intended to eliminate the option of Chapter 7 Bankruptcy for people who could afford to repay some of their debts. Now, in order to qualify for Chapter 7, a client’s expenses will be examined using the government’s “means test” which was introduced as part of the 2005 revision to the law. This test analyzes a client’s income and expenses using national and local living standards, and the median income for the client’s state.

Chapter 7: “No asset” bankruptcy – You do not have to pay any portion of your debts.

To qualify for a Chapter 7, first a client must obtain Consumer Credit Counseling from an organization approved by the United States Trustee’s office within 180 days of filing. The counseling is intended to provide the client with alternatives to filing for bankruptcy.

A client must pass the “means test.” If a client has a certain amount of disposable income left monthly, then they will not qualify for Chapter 7 and will only qualify for Chapter 13.

Most bankruptcy attorneys require you to pay their fees up front in full before they will process your bankruptcy. Fees vary by state.

A bankruptcy will remain on your credit report for up to ten (10) years.

Chapter 13: “Repayment Plan” bankruptcy – You must repay a portion of your debts. Chapter 13's can be costly.

- The court will analyze your income and expenses, and set the client up on a repayment plan with their creditors typically for 3 to 5 years.

- The bankruptcy Trustee monitors and administrates your payment plan.

If you cannot file a chapter 7 bankruptcy, you may be much better off entering a valid Debt Settlement Program , administrated by a law firm. The debt settlement program will not be listed on your credit report, you will not need to be involved with the courts, and a chapter 13 is really a quasi court ordered settlement program.

Bottom line: You need to get the facts. You can get a free quote and consultation by contacting us at: American Debt Enders.

If you enjoyed this article, please feel free to subscribe to our FREE Credit Counseling Newsletter. We never share your information, and never spam you. Wtitten By:
Steven Ciantro
Member National Association of Credit Counselors
American Debt Enders
help@americandebtenders.com
877-766-2465

Debt Settlement Is For More Than Credit Cards

Generally, when people talk about debt reduction they are referring to credit cards, and sometimes medical bills. But, in point of fact, debt settlement can be used for a wider group of unsecured debts. For example: Rental agreements and leases. Yes, why? Because these agreements are unsecured debts, and, provided you are no longer living in the unit, they can be settled on.

How about second mortgages after a house has been foreclosed on? If the second mortgage was not handled by the foreclosure sale, in other words, not enough money was paid to cover it, then, it becomes an unsecured debt, for which you are still obligated. At this point, the debt can be qualified for a debt settlement program and settled on.

What about when a business goes out of business? Usually, there are vendor bills and business debts which are unsecured. As long as you are no longer doing business and the debt was unsecured, their is a special program for settling these debts as well.

So there you have it. A good credit counselor, working in a for profit environment will be able to bring you far more solutions to avoid bankruptcy than a non-profit could ever. Why? Because, for the most part non-profits are beholden to the banks and credit card companies because they are paid by them! And, are constrained from offering other solutions beyond debt management programs, which are controlled by the banks.

If you have a debt issue and want to know all your options so you can make an intelligent decision, visit us at: American Debt Enders and get an intelligent free credit counseling session to learn all your options. Written By:
Steven Ciantro
Member National Association of Credit Counselors
American Debt Enders
Help@americandebtenders.com
877-766-2465

Ideal Time To Take Advantage Of Debt Management and Debt Settlement Programs

Banks and Collectors are finally getting it. As personal bankruptcies increase because so many consumers are throwing up their hands and surrendering, banks and collection companies are in a more favorable frame of mind for making debt management programs and debt settlement programs more favorable.

Recently Capitol One which would not lower their interest rates in a debt management program below 15.9%, just did exactly that. Also, lowering the required minimum payment to 2% of the total outstanding balance. This move makes putting a Capitol One card into a debt management program perfectly reasonable. Some creditors are even allowing other types of accounts such as flex spending accounts into debt management programs.

Collectors are becoming all the more aware that it makes Perfect sense in today’s poor economic climate to take less money by settling the account, as opposed to the cost of litigating and coming up with the same amount of money over a longer period of time.

This is a very bad time to be ignoring your debts and hoping they will go away. They will not.

This current climate is the time to take full advantage of the situation. If you would like an absolutely FREE quote on what a debt settlement or debt management program can do to help you become debt free, please visit:American Debt Enders. Also, while you are visiting our website, please feel free to subscribe to our FREE, Credit Counseling Newsletter for more self empowering information. Written By:
Steven Ciantro
Member National Association Of Credit Counselors
American Debt Enders
Help@americandebtenders.com
877-766-2465