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Credit Card Debt Elimination

 

 
What is a credit card violation under TILA - (Truth in Lending Act) ?

The following is a list of possible violations a creditor can commit against a cardholder.  These violations can only be counted from the day the creditor receives the initial billing dispute letter from you.  If you are not current when you do your billing dispute, some of the violations cannot be counted.

A single letter telling you your account is closed, if you where current with your payments.  One violation only.
Each credit report that shows your account closed.  You can receive one for each of the credit reporting bureaus they report your account closed.  A total maximum of three violations.
 Every month they report you past due on your credit report.  You can receive up to three violations per month, one for each credit reporting bureau they report too.
Every collection telephone call you answer.
Every time the caller on a collection call tells you it will adversely affect your credit.
Any collection letters.
A letter telling you it will adversely affect your credit.  One violation only.
 Account statements that do not contain information that the account is in dispute.
Account statements that continue to charge interest.
Account statements that charge a late fee.
Account statements that charge an over the limit fee.
Account statements that contain an attempt to collect.
Any attempt, arbitration or lawsuit to collect on the disputed balance.

In order to determine what each violation is worth, we must calculate the amount of finance charges the cardholder paid in the preceding twelve months.  If you do not have the past twelve months of statements, they can be ordered from the credit card issuer.  If you are confident that you have at least $500 in finance charges for the past twelve months then you will not need to research the last twelve months of statements.  Finance charges are the sum total of all interest charges, all cash advance fees, all over the limit fees, all late charges and any annual membership fees.  In order to calculate the value of each violation you would add up all these finance charges from the prior twelve months and multiply the sum by two.  For example if you had total interest over the past year of $235, over the limit fees of $70, late fees of $60 and a annual membership of $20, your total finance charges would be $385.  Now you take the total finance charges and multiply that by two to get $770 which is the value of each violation.  The best scenario is to have at least $500 in finance charges for the past twelve months to get the maximum value for each violation.

Now that we know how to calculate the value of your violation and what a violation is, the final part of this formula is to determine when you have enough violations to make your case. 

With all cases, the attorney has told us you need double the balance in monetary damages.  If the credit card balance is $10,000 you will need $20,000 in monetary damages.  If the credit card is $25,000 then you will need $50,000 in monetary damages.  The monetary damages are equal to the cash value of the violations.  Lets use an example of a credit card that has a balance of $10,000 and the prior twelve months of finance charges where $500.  In order for the attorney to have sufficient monetary damages to move forward with the case, he would need twenty violations or $20,000 in monetary damages.  The calculation is $500 of interest times two, equals $1,000 per violation times double the face amount of the balance owed to the creditor.  In other words you need twenty violations to proceed with this $10,000 example.

Another example would be a $7,000 credit card which has only $350 in finance charges for the prior twelve months.  You would double the $350 to make each violation valued at $700.  Knowing the value of the violation and the balance on the credit card, one can calculate that you need $14,000 in cash violations for the attorney to proceed.  At $700 per violation, we know we will need twenty violations to meet the $14,000 in cash violations.

Our experience so far has shown us if you follow through using this manual, you should have between twenty and fifty violations by the time you have sent out your final letter to the creditor.

If the lender agrees to settle the credit card debt without filing a legal action the attorney will negotiate the payment of their fees within the settlement.

If a legal action is required to be filed to get the lender to the negotiation table, the attorney will be negotiating for release of the debt, monetary damages (of which you will receive 60%), as well as attorney fees and cost of the action.

Once the process is complete, you will have no further obligation to us or the attorney that has handled your case.

The time line of this process will be a minimum of ninety days and depending on how far the lender wants to take it, it could be between four to eight months before a settlement is achieved by your attorney.

Payments on your credit cards can stop when the letter goes out to the lender.  You also have the option of keeping them current until there is a settlement with the lender.  If you are already in default on your payments, then there is no reason to resume payments.  Keeping current keeps your credit report clean during the process and you should be able to recover those payments as over-payments as part of the settlement.  Stopping your payments will usually temporally tarnish your credit report, which will also increase the amount of damages you would receive in a settlement from the lender.

This is the entire details and timeline for the Credit Card Program.  If you wish to receive the documents needed to begin the process, please contact us below.      

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