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The bank learned that I'm on a debt settlement program and...


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I am totally aware that my credit will get messed up. I really don't care... I just wanted my debts to go away as quickly as possible.

While considering all of the above great advice -- also rethink that statement on not caring because it can keep you from getting your "dream" job you are set on going to college for.

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While considering all of the above great advice -- also rethink that statement on not caring because it can keep you from getting your "dream" job you are set on going to college for.

Oh good point, many employers, I know mine did, run credit checks on potential employees. It's part of risk management. If you can't manage your finances, they reason, then how can you manage your job? And ANY job that involves money or personal information is OUT, their insurance writers will not allow them to hire anyone who may potentially steal from the company (and they assume if you have money problems, you'd be a big risk for this).

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Well I'm scared now... there's no way I can keep current with creditors now. I just don't make enough money to cover the minimum payments. What do I do if they won't help me out (the creditors, I mean) when I call them?

Also, after reading all of this stuff... what about all the e-mails I saved? Prior to signing up for the program, I had e-mail conversations with this guy who worked for them. He made promises about what they would do for me... and I have the evidence to prove it. Here's part of one e-mail:

Me: I am actually current on my bills right now... but I am having trouble making the payments.

Him: "( When you start school, I can imagine this will become even more difficult? )"

Me: Plus I will not be able to work as much once I start school... so my budget will be smaller than it is now. Will this damage my credit if I use this program to lower my monthly payments?

Him: "( If your Credit Card Balances are ABOVE 60% of your available credit ... your credit is already compromised. If you miss monthly minimum payments to your CC companies while you're in school, your credit will be further compromised! ) Our program is designed to make Lump Sum Payments to your Credit Card Companies, once we have a Settled Amount with them? You make minimum payments into a Trust/Savings Bank Account that we set up for you! You will make payments into that account to accumulate INSTEAD of making payments to your Credit Card Companies! At which time your credit card companies will report late payments on your credit report. BUT, when the sum amount has accumulated into your account to pay the entire settled amount, that same credit card company MUST - By Law: Report the Account As "Paid Account;" which IN TURN is then reported as "R1 Status" or "Paid As Agreed" which is the best credit rating you can achieve ... this is how any credit that is reported late by your credit card companies' actually repairs itself through the program. WE DO NOT REPORT TO YOUR CREDIT BUREAU. Any cause and effect occurs between your credit card companies reporting; but our program is orchestrated to effect an "Acct. Paid: R1 Status" by the end of the program. I usually ask a potential client this question, "Do you want to pay back ALL that you owe; or half of what you owe ... and end up with GOOD CREDIT!" "

So... I could sue them, right? LOL!

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You can sit here and rationalize all you want but the reality is your CU (irregardless of what you Debt Settlement company says) has started the rush to the lawsuit door since they know somone is getting paid and it aint them. They may just be the first to sue. You need to bail on the DS BS and get the CU current let the others go if you must or paddle hard and juggle well. You keep fiddling and you are going to get a singing it will take years to get over. You know a judgement hangs for as 10 years and many times is renewable for another 10. Accrues interest the whole time. Someday it will jump up and bite you bank account right square in the a$$ and usually when you can least afford it.

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You can sit here and rationalize all you want but the reality is your CU (irregardless of what you Debt Settlement company says) has started the rush to the lawsuit door since they know somone is getting paid and it aint them. They may just be the first to sue. You need to bail on the DS BS and get the CU current let the others go if you must or paddle hard and juggle well. You keep fiddling and you are going to get a singing it will take years to get over. You know a judgement hangs for as 10 years and many times is renewable for another 10. Accrues interest the whole time. Someday it will jump up and bite you bank account right square in the a$$ and usually when you can least afford it.

Well I think I'm going to drop them... but I think they should be held responsible for lying to me like that. I mean... is anything that they say true? Does federal law require the creditors to say the accounts are "Paid" and that I would have good credit again once the accounts were settled? If that is a lie, then they got me to sign up based on promises that they can't possibly keep.

I was just wondering... that's all.

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I'm pretty sure they lied. Or, at the very least, didn't tell you the whole truth.

The way the debt fixers that use the "put money into a saving account and then we'll settle for a fixed amount later on" get the creditors to agree is that they have YOU claim insolvency. The debt fixer says that if you liabilities exceed your assets, you're insolvent. They have you sign an affadavit to that effect. If you're insolvent, you can't pay your debts, so, in theory, the creditors accept less than the full amount you owe. (Not all creditors buy into this scam. The IRS defines "insolvent" in an entirely different manner).

So...in theory...if the creditor accepts the insolvent claim and accepts a lump sum payment to "settle" the account, then they should report to the CRA..."paid as agreed"...but...they'll probablly also add "settled for less than the full amount". Is that R1 Status? I don't know, but if it is, it ain't the best you can do.

You can probably use the CROA to at least get your money back. You can contact a www.naca.net lawyer in your area to see if you have any basis for suing them. Me, I don't think you do...

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Okay.

Well, you guys have to understand why I'm beating around the bush here... so to speak. I am terrified! I can't think straight... I have literally been a walking zombie for the last week because all I can think about is how screwed up everything is. I am afraid I am going to make another wrong decision. Perhaps I should talk to a lawyer... but I don't have money to pay one either.

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The lawyers at www.naca.net generally don't charge unless they win. At the very least, maybe you can have a conversation with them about how to get your money back from the debt fixer.

As for repairing the underlying cause...the debt...you're just going to have to do what I suggested a few pages ago. Work out a budget. Call your creditors. See what you can arrange. If they won't play along, then your next choice is BK 7...and forgo school until you're back on your feet.

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Ok, here is where this guy is full of CRAP !

At which time your credit card companies will report late payments on your credit report. BUT, when the sum amount has accumulated into your account to pay the entire settled amount, that same credit card company MUST - By Law: Report the Account As "Paid Account;" which IN TURN is then reported as "R1 Status" or "Paid As Agreed" which is the best credit rating you can achieve ... this is how any credit that is reported late by your credit card companies' actually repairs itself through the program.

The problem: It will take more than 6 months for you to accumulate enough money in their account to make ANY kind of settlement offer to your creditors. Once an account reaches 6 months of non-payment (sometimes sooner), the creditor will charge-off the account and most will sell that account to a collection agency or junk debt buyer soon thereafter. Even if you pay it ALL before charge-off, you won't get the R1 - you'll have lates that will prevent that.

At that point, no matter what you do, paying the original creditor, even in full, will NOT 'repair' your credit, it won't get you an R1 rating even if they do report it as 'paid as agreed'. They won't report it as paid as agreed though because it was NOT paid as agreed, it was continually LATE and those negative marks won't disppear for 7-1/2 years.

Once the debt goes to collections or JDB, you can't pay the original creditor anyway, they wash their hands of it - you pay the CA or the JDB - and they have NO power to report the original account as paid - they'll show a paid COLLECTION - still a negative that sticks for 7-1/2 years.. no 'credit repair' there at all.

So, he gave you a song and dance and if he believes what he told you, he needs an education in REAL credit reporting and the impact of negatives.

Sorry you're stuck... I wish these agencies could be outlawed completely.

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Okay... I'm going to call my credit union first thing on Monday. Hopefully they will talk to me since they sent my loan off to their attorney's office (I actually called this attorney's office and no one would talk to me!). The loan officer there is actually very nice... perhaps she will help me figure out some other things as well. I remember the last time I was in her office... she said to me "you really need to get rid of all this debt". I took her advice... or at least, I thought I was taking her advice. I really just wanted to get rid of my debt and this guy convinced me that I could pay half of what I owe and still have good credit. Everyone I asked (including my parents) thought it was a great idea... so I thought I was doing the right thing.

Hehe... perhaps my in-laws could pay for their share of this debt. Now before you jump on me... I'm not making excuses or trying to blame others for this. But boy did they tick me off two years ago! When my husband and I we planning our wedding... they promised to pay for our honeymoon. Nice of them, huh? So we go to a travel agent... make all the plans... give them some money (his parents said they'd pay us back) and then waited for them to pay the rest of the balance. Well... somewhere along the line, they had second thoughts and decided they didn't need to pay for it. Well unfortunately for us, it was too late by the time we found out. According to the contract, we were paying for that trip whether we went or not! So my husband said we should just go and I offered to take out that loan at my credit union. You know... I'm still mad at them to this day about that! GRRRRR!

But I know... I know... its still my debt and its still my fault for getting myself into it.

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I'm sorry to say e-mails are not admissible evidence in court unless you have a certified, unaltered copy of the data from the mail servers. Print outs are inadmissible because anyone with a wordprocessor can type up a facsimile. And good luck getting that data off their servers.

As for getting out of any contract with the debt management company, that's probably the easiest thing you have to do:

Send a certified mail letter to the debt management company revoking their power of attorney to act on your behalf and firing them for failing to perform under the terms of the agreement. Your basis for this claim is that one (or more) of the creditors they promised to pay has claimed they did not receive payment and that they have misrepresented their ability to negotiate with your creditors (as evidenced by the credit union threatening to sue you).

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I really just wanted to get rid of my debt and this guy convinced me that I could pay half of what I owe and still have good credit. Everyone I asked (including my parents) thought it was a great idea... so I thought I was doing the right thing.

Remember, ANYTHING that sounds to good to be true-- such as paying only half of a debt and all being right in the world is usually not either legal or all of the story.

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I'm sorry to say e-mails are not admissible evidence in court unless you have a certified, unaltered copy of the data from the mail servers. Print outs are inadmissible because anyone with a wordprocessor can type up a facsimile. And good luck getting that data off their servers.

As for getting out of any contract with the debt management company, that's probably the easiest thing you have to do:

Send a certified mail letter to the debt management company revoking their power of attorney to act on your behalf and firing them for failing to perform under the terms of the agreement. Your basis for this claim is that one (or more) of the creditors they promised to pay has claimed they did not receive payment and that they have misrepresented their ability to negotiate with your creditors (as evidenced by the credit union threatening to sue you).

They are admissible in small claims... but, I suppose you are right. It's not going to do any good. Just wishful thinking on my part, I guess... since I'm a bit angry with them at the moment.

At the very least, I can show the e-mails to my credit union and prove to them that I was duped and then beg for forgiveness.

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I'm sorry to say e-mails are not admissible evidence in court unless you have a certified, unaltered copy of the data from the mail servers. Print outs are inadmissible because anyone with a wordprocessor can type up a facsimile. And good luck getting that data off their servers.

Incorrect. Testimony of personal knowledge of the document sought to be entered into evidence is prima facie showing of authenticity.

An email is no different than any other document sought to be entered into evidence - a letter, a memo, a statement, invoice, etc. There is absolutely no evidentiary threshold like the one described above that is specific to email.

Now, that's not to say there's not one or two cases wherein the opposing side was able to raise the question of authenticity to such a level as to require extreme proof, but as a rule - no. In fact, I have personally used email evidence on more than one occasion. You can read more on this subject in AmJur Evidence s.1032. To learn more about how to enter email evidence, and keep it out, you can read 41 Am. Jur. Proof of Facts 3d 1.

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That would seem correct. After all, with today's technology, a person could manufacture almost anything, including video. A letter or word processor document would be child's play. Requiring the original data is a bar that is very high, and if a court were to begin applying such a standard, no one would be able to meet it with ANY evidence.

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So I can use the e-mails to show I was duped into the contract?

I really hope that if I show them to the loan officer at my credit union that she will call off the dogs! There is even stuff in the e-mail that shows I was concerned about including the credit union loan in there. They would have to see that I never intended to make them think I wasn't going to ever pay them. And then maybe they will work something out with me for paying the loan... since all of my money is gone at the moment. LOL!

Oh if only I had phone conversations recorded! When the loan officer first called me saying that they were going to turn me over to their lawyer to have my wages garnished... I called the settlement people and they swore to me over the phone that it was just a scare tactic and to ignore them.

They also told me not to communicate with my other creditors... to just not answer the phone. Or if I talked to them, to follow this script.

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Oh... one more question. It was a week ago Friday that I got the letter in the mail saying I needed to contact the lawyer ASAP. Its not too late is it? I left messages there, but no one was ever there that "could talk to me" when I called last week. I don't want to go to the credit union tomorrow and find out they have already had a summons written up.

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The same goes for any testimony. I can say that I sent a certified letter to a CA, and produce a signed green card. The CA can then admit that they got the letter, but claim that the envelope was empty, or that it contained a different letter than what I claim to have sent. The standard here is preponderance of evidence.

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I'm so nervous now... :?

I keep thinking about what will happen tomorrow. I plan on going to my credit union first thing in the morning (since them wanting to sue me is the most urgent thing to take care of at the moment). I'm so scared they are just going to have a summons there waiting for me or something. I keep thinking that its too late for me to do anything. Its been a week and 2 days since I received the letter. I waited this long because I actually thought those liars were going to do something about it... now that I've come to my senses, its probably too late. :( What do I do if she says there's nothing I can do about it now? I would hope that they would prefer to settle things outside of court... but I guess you never know. I just can't have them garnish my wages! There won't be any money left in my paycheck if they do!

Sorry... I'm freaking out a bit. That happens when I'm allowed to stew over something for several days and not being able to do anything about it.

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Okay... I talked to my dad on the phone. I really, REALLY didn't want to do that. It's really none of his business that I'm having all these problems and the last thing I need right now is a lecture. But I figured he could help since he is the reason I have the account at the credit union. Anyway, he said that he thought it would be okay to talk to them and try to work something out. He's been a member there for a long time... so he thinks they'll be pretty understanding if I play the naive girl who was taken advantage of. I really hope so... I don't want to have to go through their attorney's office... that would just mean another bad mark on my credit report.

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