HOW IT WORKS:

The Debt Reconciliation process includes several Phases that force credit-reporting agencies, original creditors and debt collectors to comply with Federal Laws including the Fair Debt Collection Practices Act (FDCPA), Truth in Lending Act (TILA), Fair Credit Billing Act (FCBA) and Fair Credit Reporting Act (FCRA). It is virtually impossible for them to do so.

Phase 1

Credit reports provided by the three reporting agencies Equifax, Experian and TransUnion are examined for negative comments. Multiple letters demanding verification in accordance with the FCRA are sent to each agency and it is extremely difficult for them to satisfy the demand. With few exceptions, the negative comments are removed.

Phase 2

The ownership and validity of the debt is determined and consumers are permitted, by law, to withhold payments when accounts are being disputed. A series of proprietary letters are sent at specific intervals to the original creditor or third party debt collector demanding they verify the debt in accordance with the FDCPA, other laws and accepted accounting practices. They cannot satisfy the demand and subsequent letters demanding they zero out the account and mark it "paid as agreed" are sent and, once again, they will not comply. As it relates to the original creditor, this part of the process is specifically designed to expedite, or accelerate, the transfer of the debt to a debt collector. For reference, it is extremely difficult for any of the 850,000 debt collectors in the United States to conduct business without violating the FDCPA.

Phase 3

A compliance audit is conducted by certified paralegals for each individual account to document violations of the FDCPA and other laws committed by the original creditor and debt collector. The completed audit is sent to an Attorney licensed to appear in Federal Court in a client's State and their representation included for all clients as part of the Process. The Attorney prepares a Federal Complaint, contacts the debt collector on behalf of the client, and presents the violations to the debt collector. With very few exceptions, they settle over the phone. The method of settlement does not incur tax liability for the client and compensation to the client for the violation of their rights is frequently part of the settlement.

The proven Debt Reconciliation process is available to consumers in all 50 states.

The process also restores your credit by having negative remarks removed from your credit reports and an Attorney represents you when a financial institution, debt collector, credit-reporting bureau or other third party violates your rights. This program has been very successful and in addition many customers have received compensation for the violation of their rights.

The process is completely legal and is in no way unethical, nor does it attempt to circumvent the law by using tricks, deception or legal loopholes. Simply stated, a compliance audit successfully applies established Federal Laws and Statutes to the protection of consumers by legally forcing creditors, collection agents, third parties and credit-reporting bureaus to comply with the law. Most people are unaware it is very difficult for these organizations to comply and payments can legally be withheld when a debt is being disputed.

Through a series of strategic, predetermined steps this process forces debt collectors to write-off the discounted debt after being confronted with the violations committed against you. In addition to having the debt zeroed out, part of the settlement agreement is to also remove negative comments associated with the debt from your credit reports and to compensate you for the violation of your rights.

Approximately 200 Federal Laws and 400 By-Laws regulate creditors and reporting agencies. It is virtually impossible for them to comply with all of these laws and they consistently violate the law and your rights. A complaint demanding monetary compensation for the violations committed against you will be filed in Federal Court if they do not comply. However, these cases rarely go to court and are often settled over the phone.

For credit card and other unsecured accounts, the bank or card issuer is advised the debt is being disputed and must be verified in accordance with the law within 30 days. According to Federal Law, payments can be withheld when a debt is being disputed and the creditor will be unable to comply with the demand. The debt will be sold to a collection agent or other third party debt collector, which is an intended part of the process.

Collection agents and other third party debt collectors, including attorneys, purchase debts charged off by banks and other companies for a small percentage of the original value. They attempt to collect the full amount of the charged off debt from you, and sometimes indicating they are working on behalf of the original creditor, which is negligent misrepresentation. This and other statutory violations consistently committed by collectors in violation of the law, including threats, inappropriate conduct, false and misleading statements, etc., are documented in a compliance audit conducted by certified paralegals.

Legally disputing the validity of your debt serves as the catalyst for ending the debt and its ultimate purpose is to document the violations committed by debt collectors that purchased your accounts. The attorney informs them the violations have been documented and they are prepared to file a Federal complaint seeking dismissal of the collector’s claims, plus compensation for the violation of their client's rights and attorney’s fees. When confronted by the documented violations, debt collectors realize the facts substantiate a valid legal claim that proves they violated the law.

Debt collectors understand they will be found guilty if the case is heard in Federal Court and recognize in addition to the items mentioned above, there would be financial penalties imposed by the court for violating the law, they can lose their license to collect debts in your state, and their insurance costs will increase. With very few exceptions, an out-of-court settlement is reached. You will not have to appear if the case does go to Federal Court.

At a minimum, the negotiated settlement includes removing the debt from the collector's records without creating a tax liability for you and the removal of all negative comments about the debt from your credit reports. The attorney will also negotiate compensation for the violation of your rights and if an amount is agreed-upon, the funds are distributed accordingly - 50% to the attorney, 25% to CCDN and you receive 25%.

A representative is assigned to each client upon enrollment and you are totally supported throughout the entire process. You will receive an enrollment package within ten business days after payment is received that must be completed and sent to your assigned representative. The process begins upon receipt of your completed enrollment documents.

The process is not complicated; however, you must be conversant in written and spoken English so that the instructions and information provided by your assigned representative are followed. This includes completing and mailing the initial enrollment package, following instructions about what to say when answering telephone calls from creditors, collection agents or attorneys, accurately preparing and mailing several forms and letters that will be supplied to you as determined by your specific requirements and keeping duplicate copies of all letters and forms for your records. Under most circumstances, the only information you add to the letters and forms supplied to you are your name, address and account information.

The typical time required to complete the process and restore your credit is 12 to 15 months.