Consumer Publishing Group

- Welcome Letter -
FROM: Walter Ashboro

TO: Valued New Customer

Thank you for your purchase of the “Credit Secrets Bible!” If you’re currently suffering from the
pain and frustration associated with bad credit (or no credit at all), the home study course e-book
you’ve just received will be an angel at your doorstep! Especially if your credit rating has
been keeping you from renting a nice apartment, or buying the car or home of your
dreams. If this is your situation I’m confident you’re in for a heart warming experience!

The secrets you are about to learn are so powerful that some credit specialists have charged
consumers up to $2,000 for them and they gladly paid because even at that price it’s worth
every penny to have excellent credit in today’s world. The “Credit Secrets Bible!” was designed
to teach you how to restore your bad credit and build up your credit score better and faster than
those so called “miracle” credit repair companies - and for pennies on the dollar!

Since we’re strictly a publishing company, we’ve setup a special online Help Desk at http://
www.MyClientHelp.com. There you will find a wide array of questions and answers to the most
common questions our clients have. For example, did you know that asking the credit bureaus to
delete some derogatory accounts can actually LOWER your score? You will learn many secrets
like this from the Credit Secrets Bible and Help Desk. For more advanced, personalized assis-
tance please check out our forum at http://www.CreditSecretsBibleForum.com.

One last note! Please don’t forget to listen to the audio portion of this product. You can also
read the audio transcript interview on the pages to follow. We appreciate your business!

Best of Luck...
(although luck will have
nothing to do with it!)

Walter Ashboro
Consumer Publishing Group

P.S. Be sure to learn about the “Special Phone Number” you can call to get the TRUTH
about all those ads offering you a guaranteed $5,000 to $10,000 Credit Card with NO
CREDIT CHECK (find out what’s a rip off and what’s not!) For details call our 24 hour
Recorded Message at: 1-801-350-3999. Call right now!
His Credit Report has…

6 Unpaid Collection Accounts

9 Hard Inquiries
Not one mortgage…
…Not even a lousy car loan!
…Yet his credit score is 690

WHY!!!?
The answer is found in three words:

ADVANCED
CREDIT
BUILDING
It’s true… what you don’t know may not hurt you but it will lower your
credit score! With your permission we’d like to share with you our never
ending work in progress on a weekly basis. Fill out the form at this link
and as usual your information will NEVER be rented or sold to anyone.
Opt out and we will vanish from your life like a shadow in the night!

To enroll for free information, go to:

http://www.CreditConditioning.com/free/

*Hurry! Due to the “unique nature” of this offer it may be withdrawn or cancelled at ANY time!
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 The
CREDIT SECRETS
Bible!
NEW INSIDER SECRETS TO
HELP YOU CHANGE YOUR LIFE!
The elite techniques http://NationalCreditEducators.com teach to help Page 31
consumer’s raise their credit scores up to 249 points in less than 90 days (and
how you can easily use them yourself for practically NOTHING!)

The “Special Phone Number” you can call to get the TRUTH about all Page 100
those ads offering you a guaranteed $5,000 to $10,000 Credit Card with
NO CREDIT CHECK (find out what's a rip off and what's not!)

Why a “perfect” credit report is not always the highest scoring credit report Page 33
(learn exactly why disputing some derogatory accounts can actually LOWER
your credit score!)

How to make up to $2,500 for every unauthorized hard inquiry that’s Page 48
placed on your credit report (learn how to spot them, how to set the com-
pany up, and how to collect your cake!)

“Startling courtroom testimony” on exactly HOW the credit bureaus work (and Page 116
why the credit system remains seriously flawed and consumer confidence
in the system is declining despite new laws and regulations!)

The “KO” method to getting rid of debt collectors (information so pow- Page 44
erful they hope you never learn it because it literally stops them DEAD IN
THEIR TRACKS!)

Consumer Publishing Group’s 2007 Customer Appreciation Newsletter (over Page 145
10 different ways to have your student loan cancelled by the U.S. Govern-
ment, how to legally get a new SSN, and much more!)
DISCLAIMER: The Credit Secrets Bible and Companion Audio Program have been developed solely for informa-
tion purposes only. The author and/or publisher are not giving advice on any subject, and are not giving legal,
financial or credit repair advice to anyone, in any way, shape or form. While the author and/or publisher have
carefully researched information from credible sources, they cannot guarantee the accuracy, correctness or in-
tended use of the information presented. Some of the methods presented in this book describe methods other
consumers have used to repair or restore their credit and may not be legal in certain parts of the United States.

The author and/or publisher hereby disclaims any liability for loss, risk, damage, inconvenience (real or imag-
ined), that may be incurred by or resulting from the use of any ideas, information, or opinions contained or
presented in this book. As with any credit or legal matter, a consumer should seek the advice of a competent
legal professional before applying any of the information presented in this book.

Copyright 2007-2012, Zodiac Publishing Corporation. All rights reserved. No part of this book may be reproduced
in any manner whatsoever without the written permission of the publisher. Any copyright violations will be reported
to the Federal Bureau of Investigations and vigorously pursued to the fullest extent of the law. For information
on reproduction rights write to: Zodiac Publishing Corporation, 18124 Wedge Pkwy Ste 700, Reno NV 89511-
8134.
 TABLE OF CONTENTS
Credit Secrets Bible “INTRODUCTION” by Walter Ashboro! Page 9

Credit Secrets Bible “Special Bonus Interview Transcript” - READ SECOND! Page 12

The elite techniques http://www.NationalCreditEducators.com teach to help consumer’s raise Page 31

their credit scores up to 249 points in less than 90 days (and how you can easily use them yourself
#1: for practically NOTHING!)

Why a “perfect” credit report is not always the highest scoring credit report (learn exactly Page 33
why disputing some derogatory accounts can actually LOWER your credit score!)

The 7 most common credit reporting errors (and how to spot them, how to dispute them most Page 35
effectively, and how to read the credit bureaus investigation results!)

The “KO” method to getting rid of debt collectors (information so powerful they hope you’ll Page 44
never learn it because it literally stops them DEAD IN THEIR TRACKS!)

How to borrow up to $10,000 - or more - and pay ZERO interest (a closely guarded secret used Page 74
by financial wizards and millionaires the world over!)

How to get paid up to $2,500 for every unauthorized hard inquiry on your credit report Page 48
(learn how to spot them, how to set the creditor up, and how to collect your cake!)

Exactly what to do if you’re the victim of identity theft (why reporting the fraud to the police is Page 51
usually a waste of time, and what you can do if the fraud is causing you economic hardship!)

Credit Repair Attorneys $1,500 secret to removing bankruptcy, judgments, evictions and Page 40
tax liens from your credit report (and how you can do it yourself practically FREE!)

The best time of the year for consumers to dispute derogatory information with the credit bu- Page 54
reaus (valuable tip used by savvy credit repair attorneys and specialists for years!)

Bankruptcy still hurting your credit? Learn why it’s not the bankruptcy itself that’s Page 38
killing your score (and exactly what part of the bankruptcy is - and how to correct it!)

How to determine if your derogatory accounts are “aged” correctly so they fall off your report Page 41
faster (and if they’re aged wrong, how you can get them deleted for good!)

The “SOL” technique that’s virtually guaranteed to stop a debt collector or creditor from Page 46
suing you (when they receive this one simple letter it will be a complete waste of their time to
ever contact you again!)

Late-pays a problem? Learn which late-pays to target (and the best technique for removing them Page 48
from your credit report in less than 30 days!)

How many negative items should you dispute in each letter to the credit bureau’s? (Learn Page 50
the “magic” answer and we guarantee it’s sure to surprise you!)

How to keep your disputes simple, factual and effective (and why most dispute letters are laughed Page 55
at by creditors, debt collectors and the big-three credit bureaus!)

The one “government sponsored” source to get a FREE copy of all 3 of your credit reports Page 70
(and the special government approved form that makes it all possible!)
The one “simple form” identity theft and fraud victims have used to ELIMINATE their credit Page 63
problems in less than 30 days (it’s also government sponsored and takes less than 5 minutes to fill
out!)

Arizona Credit Guru’s $500 “insider method” to correcting a merged credit file (and the Page 50
best way to determine who has merged with your credit, and how to correct it once and for all!)

BONUS! Actual credit report listings showing incorrect reporting (amazing yet common errors Page 52
most people miss on their credit report - broken down into plain English!)

Served with a summons to appear in court? Here’s what you can do (and learn which Page 46
options you have, and how you can defend yourself - before it’s too late!)

Copy and mail any one of these short letters that should STOP all harassing debt collector phone Page 73
calls forever (learn the 3 different “cease and desist” methods, and when to use them!)

The “pyramid method” to getting up to $20K of unsecured credit and up to 20 years of Page 104
history added to your credit report in less than 45 days (reporting is subject to change by the
creditors and credit bureaus!)

The three special phone numbers you can call to get FREE identity theft protection (save $150 a Page 32
year - or more - plus get a free copy of your credit reports to boot!)

The “hidden truth” about creating an Alternate Credit File (and the only 100% legal and Page 127
ethical method you can use to do it yourself!)

All about the Vantage and FICO Expansion Score (how they work, whether or not you’ll benefit Page 29
from them, and when - if ever - you should buy them!)

“Startling courtroom testimony” on exactly HOW the credit bureaus work (and why the Page 116
credit system remains seriously flawed and consumer confidence in the system is declining
despite new laws and regulations!)

Billing errors not being handled by your credit card company or the bank that issues your debit Page 89
card? (Learn your rights under the Fair Credit Billing Act so you don’t get the “runaround!”)

Why paying off your credit cards in full each month actually gives you LESS credit (learn Page 14
exactly how much to charge and how much to pay each month to build your credit fast!)

Three simple secrets to start getting dozens of “Pre-Approved” credit cards in your mail box Page 16
(powerful facts about how cell phones, mail boxes and moving affect your credit report!)

Predatory lending specialist spills the beans on the 7 most common mortgage scams Page 79
(don’t become another victim, and if you are - what you can do to fight back!)

How to save up to $100,000 or more in mortgage interest without refinancing (a must have secret Page 22
for current homeowners and first time home buyers!)

The “4th largest Credit Bureau” and how ignoring them could cost you THOUSANDS Page 33
(even most credit-savvy consumers are completely unaware of this one!)

How to DOUBLE any credit card limit with 2 phone calls! (these could be the best two calls you Page 16
will make this year!)

What banks and credit card companies don’t want you to know about bankruptcy (good Page 24
news if you’ve filed Chapter 7 and great news if you’re being forced into Chapter 13!)
The amazing software program that will track your credit, tell you how much to pay monthly on Page 25
your debt, create and manage your monthly budget (and is yours free to try for up to 90 days!)

Why 94% of all Credit Bureau disputes are “red-flagged” and the one secret you can use Page 53
to avoid this failure (another secret never before released to the public - until now!)

Two secrets you need to know before calling ANY Consumer Credit Counseling Service or Debt Page 76
Consolidation Company (if only everyone understood these simple facts!)

Two “Unique Letters” you can use to PAY OFF your bills for as little as .35 cents on the Page 91
dollar (don’t even think about calling Consumer Credit Counseling or filing Bankruptcy until
you read this!)

One easy phone call that will slash your credit card payments in half (a lifesaver if you are “up to Page 25
your neck” right now!)

Why being self-employed hurts your credit report and the easy remedy to get around this Page 17
discrimination (plus lower your taxes to boot... You may fire your accountant for not knowing
this clever insider technique!)

How to get a checking account in 48-hours even if you’ve been reported to ChexSystems (no Page 108
more hassling with money orders!)

The TWO THINGS you must know before signing up for any “FREE” credit report service Page 32
(another one many people learn too late!)

The top secret method to building your credit super fast using the “Advanced Profiling” method Page 19
(yet another unpublished technique we first released to the public!)

The truth about making big money with “Tiny Classified Ads” (and what those late night Page 26
“Get Rich Quick” infomercial guru’s don’t want you to know!)

The one “hidden” source that will loan women up to $10,000 to start or expand a new business, Page 75
invention or idea (the time is now to build your independence!)

Five secrets every married person must know before signing any credit application (don’t Page 102
let you or your friends make these common mistakes that can end in financial disaster!)

How to purchase your DREAM HOME with no income or asset verification (and with as little as Page 114
5% down payment using a “little known” tool called a Deposit Loan Program!)

How you can STOP foreclosure or recover a home after foreclosure using special consumer Page 88
protection laws (news that banks and mortgage lenders would rather not see published!)

The TRUTH about those “free government money” ads you see and the two things you must Page 23
know BEFORE claiming your share (info that’s worth it’s weight in gold!)

The “Special Phone Number” you can call to get the TRUTH about all those ads offering Page 100
you a guaranteed $5,000 to $10,000 Credit Card with NO CREDIT CHECK (find out what's
a rip off and what's not!)

Over 50 sample dispute letters other consumers have used to legally REMOVE charge-offs, col- Page 56
lections, late-pays, inquiries, repossessions, judgments, bankruptcy, and student loans from their
credit reports in less than 30 days (and with instructions on how to use them yourself!)
 AN INTRODUCTION TO THE CREDIT MATRIX!

by Walter Ashboro!

Congratulations on your purchase of the Credit Secrets Bible! In the pages that
follow you will discover that ordering this course was the best decision you've ever
made, and that you will probably never again find a better value for your money. Re-
member, excellent credit is not just valuable in today's economy. It will be priceless in
the years and decades to come! Let me explain why...

Only 40% of the population has excellent credit. I define someone with excellent
credit as a consumer with a score of over 700 across all three bureaus. I call that 40%
the “prime gap” because it’s the best scoring segment you can be in. For example, if
you get an inquiry then your score probably won’t change. You get one late pay and it
may drop a couple of points. Minor blemishes in the 40% “gap” are very soft on
your score. That’s why it’s the best scoring model to be in, although if you’re not
careful you can get dropped to...

The 60%. I call the 60% the “sub-prime gap.” This seems to be where all the crazy
and unpredictable scoring models begin to come into play. I’m not saying there are two
scoring models, the 40% and 60%. Then it would be easy to figure out the entire scoring
system. If you’re in model A and this happens, the result is X. That would be too easy.
That is why there are probably hundreds of models. The purpose of that is to keep
you and I from being able to predict the entire credit scoring system.

The “sub-prime gap” is not a segment you want to be in because the scoring models
can be highly unpredictable, and they’re designed to keep you in the 60%, and also bring
your score down quickly if you make minor mistakes. Case in point: Henry, who has a
score of 600 applies for credit. He loses 35 points off his score whether he’s approved
or not. Whereas, in the “prime-gap” his score probably wouldn’t change at all. Another
example: Jill’s score is 650. She falls behind on three of her credit cards and gets 3 late
pays. Her score drops 30 points. She then brings them current and gets all 3 late pays
deleted. Subsequently, her score drops another 20 points for a total loss of 50. The
scoring system in the “sub-prime gap” has multiple personalities. These person-
alities or models are designed to keep the scoring system unpredictable and to keep you
in the most competitive and profitable market for creditors.

Now more than ever is the time to understand “the credit game” and exactly what’s
going on. I’m sorry to break the news to you but if you don’t have a plan for your credit
Copyright 2007-2012
Consumer Publishing Group
9 NEXT PAGE

then the creditors do! Their primary goal is profit, and one of the most profitable
places to keep you is in the “sub-prime gap.” The credit scoring system is designed
for one purpose, and one purpose only - to maximize creditor profits. Of course, debt
collectors and the credit bureaus are also making some cake but they just happen to be
on the side lines watching the “system” they’ve designed.

One of the reasons I agreed to update this introduction is because I believe the credit
reporting system is inherently corrupt because of who profits most from it. For years
consumer advocate groups have lobbied for reform and in 2004 Congress (notice Con-
gress is a much different word than Pro-gress) approved changes to the Fair Credit
Reporting Act that placed new procedural requirements on the credit bureaus. Not
surprisingly, these changes have accomplished nothing in terms of accuracy of
information. The whole process is still unfair because consumers are guilty until proven
innocent. In addition, regulators are not enforcing the new laws.

Needless to say, the credit bureaus are still up to their same old tricks. They still re-
age accounts. They still refuse to investigate inquiries. They still allow debt collectors to
place hard inquiries on consumer reports (which can lower a score up to 35 points) when
the inquiry should be a harmless account review. They still reinsert deleted accounts
without notifying the consumer as required by law. I could go on and on. Meanwhile,
the FTC knows exactly what’s going on and yet they’ve done nothing! It appears
we have the best government (and regulators) corporate money can buy.

We all know profit is their only motive. That’s just business. That’s also why I
strongly suggest you never go into debt ever again (except for a home or business). Use
your credit knowledge to go throughout life with GREAT CREDIT, which is a whole lot
easier than going through life with bad credit. If you feel you must finance a con-
sumer item, a good rule of thumb is never go into debt more than 25% of your
annual net income. This means that if your net income (after taxes) is $20,000 a year,
your total combined debt should never exceed $5,000. Again, this is only if you feel you
must finance the purchase of an item or make a sound investment.

You ordered this package because you want to improve the quality of life for you and
your loved ones. I respect you for that. Now you've taken action and your next step
is to follow through. Taking action and utilizing the techniques in this course are
obviously going to be much more important than reading it. Take whatever information
you find useful with this course and use it to your advantage!

Let’s now talk about how you can most effectively use this course because everyone’s
situation is different so let me address a few issues before you move forward.
Copyright 2007-2012
Consumer Publishing Group
10 NEXT PAGE

 One of the most common misconceptions people have about credit is this: “In
order to raise your credit score you must delete all your derogatory items off your
credit report as quickly as possible.” IN REALITY... Nothing could be further from
the truth. It’s hard for people to understand this but a “perfect” credit report is not
always the highest scoring. I have seen derogatory items deleted and watched credit
scores GO DOWN. Yes, I said down! This is completely opposite to conventional
wisdom. You don’t need to get everything off to raise your score 100+ points.

If your credit is bad, the most important thing you should do first is: Add positive
accounts to your credit report to offset any derogatory items. Pyramid with secondary
accounts (see the section on “pyramiding”). For those of you who are very serious
about adding primary accounts call our 24 hour recorded information line 1-801-
350-3999 for more details. Second, go after the incorrect reporting that’s hurting your
score the most. For example, if you have a 6 year old charge-off (and after 7 years the
item will be obsolete and be automatically removed) attack newer accounts. Focus on
what’s most damaging to your credit score first!

Next, learn how to read all three of your credit reports. If they start to look confus-
ing and intimidating please be patient - it’s much easier than it sometimes looks.
Remember, the credit bureaus and creditors want you to throw your hands up in the air
and give up. Another tip is don’t get your credit reports online! Either order them
through the mail, or order them via telephone from each bureau directly, or call the
Annual Credit Report Service. You’ll then get the “standardized” reports which I think
are much easier to read and contain more information about each listing on your file.

Once you learn how easy it is you’ll have the skills to deal with any incorrect credit
reporting for the rest of your life. If you’re like many others, you’ll take this gained
wisdom and help your friends and family. If you decide to make a profession out of
this process you’ll be paid well for delivering results and have the joy and satisfaction of
knowing you proved you could do it yourself.

Whatever your situation is, realize that there’s no such thing as a “one size fits all”
credit course. Certain parts of this course will address your situation, and others won’t.
My goal is to provide you with a deeper understanding of the credit system, and the best
way to utilize the newest techniques that will get you the results you want. I pray I’ve
done the best job I could because I wrote this course for consumers just like you.

Warmest Regards,

Copyright 2007-2012
Consumer Publishing Group
11 NEXT PAGE

 Special Bonus Interview!
What you are about to read is a transcript from a telephone interview regarding
credit. This transcript is provided for informational purposes only and is not a
substitute for advice from a licensed professional. We thank you, our clients, for
making this interview possible.

Terry The first thing you need to understand about the credit system is — it’s a
system. With any system the people that understand that system are at a
tremendous advantage over the people that don’t. The second thing you need
“The to realize is that once you fully understand and apply the concepts in the
highest Credit Secrets Bible, it’ll probably be the highest paid work you’ll ever do.
paid work
you’ll ever For example, let’s say to successfully build your credit to a score of say, 725.
do!” Let’s say it takes you a total of 40 hours of work over the next 6 to 12 or even
36 months. The fact is, you’re going to be around in the next 6 to 12 to 36
months anyway, right?

Dave I sure am.

Terry So let’s say because of your credit score you’re able to finance a home at just
a 2% lower interest rate. This is going to save you about $100,000.00 over
a 30 year term.

Dave Wow.

Terry If you take that $100,000.00, divide it by 40 hours worth of work, you’ll
see that you made $2,500.00 an hour for your time. I think the biggest
mistake is that consumers don’t really understand that this will be the highest
paid work that they’ll ever do. So take another example, let’s say you bought
a car and you’re able to save $4,000.00 because you had better credit. In this
Saving case, you divide the $4,000.00 by 40 hours, you’ll make $100.00 an hour
money
and
for your time. People rarely, if ever, take this perspective when it comes to
making building their credit and it’s unfortunate. Now the most important thing is
money that consumers have to put into perspective what it’s worth to them. Now at
with good
credit! this point we’re just talking about saving money.

Now let’s talk about making money. An excellent credit rating can give you
access to large amounts of cash. In many cases the cash can be interest-free

Copyright 2007-2012
Consumer Publishing Group
12 NEXT PAGE

 for extended periods; sometimes as much as 12 months or more. Now imag-
Leverag-
ine the money making opportunities you could take advantage of if you had
ing your access instantly to $10,000, $20,000, $30,000 or $40,000 within 24 hours
credit just on your signature. What kind of opportunities can most people find that
with
business are very low risk with a very high return? When you know the secrets to
and building your credit fast you can take advantage of opportunities like this.
invest-
ments!
And, of course, our biggest frustration in doing this audio is that we’re going
to run out of time. However, I’ll talk fast as much as I can to give you as
much information as quickly as I can because you can always rewind and go
back over the material later. So there’s mainly three types of people that the
Credit Secrets Bible goes to and I’ll go over those real quickly.

The first is we have people (consumers) that have bad credit. These are
people that need to learn how to raise their credit score quickly by first re-
moving and correcting as many negative items in their credit report as fast as
possible; and two, by learning how to add positive accounts to build their
Dual credit up as quickly as possible. And I want to emphasize that because one of
approach: the biggest things that people miss out on is they talk about credit repair,
“Remove
the bad, credit correction and it’s all this emphasis on removing negative items. It is
and add just as important, if not more important, to learn how to build your credit
the fast. For example, if you have five bad accounts you can remove the five
good!”
accounts. If that happens, then you have no credit. It’s just as important
to learn how to get five positive accounts on there quickly...

The second type of people are people with high debt. These are consumers
that have good credit but they’re in debt over their ears. These people need to
learn how to negotiate their debts and pay them off for as little as 27 cents on
the dollar while preserving their credit rating; and preserving the credit rating
is the part to underline there. And again, the second part of that is learning
how to add as many positive accounts to their credit file as quickly as pos-
sible.

“When you Third, these are the minority — these are consumers that simply have no
understand
how the credit and this is an easy class because basically they need to learn how to
system build their credit quickly. The average American out there has no idea how to
works, it’s
very easy!”
build their credit fast. Again, it comes back to the system. When you under-
stand how the system works, it’s very easy.

So first, let’s talk about the people with no credit and building up credit be-

Copyright 2007-2012
Consumer Publishing Group
13 NEXT PAGE

 cause that’s going to apply to people who have high debt and need to preserve
“The
their credit and they need to reestablish credit or people that have bad credit.
credit So first, let’s just talk about nothing but strategies for building credit. Today
scoring we live in an age that your credit score is going to determine more things
system is
a risk about you than ever before and it’s only going to get worse. For example, the
based amount you pay for auto insurance will be affected by your credit score. That’s
model!”
almost with probably 80% to 90% of auto insurers. If they don’t run your
credit then you’re going to have to pay more. They’ll give you the option.
Health insurance, in many cases. Homeowner’s insurance. It’s absolutely
incredible. And then you get into the situation with employment and jobs and
that sort of thing. So the credit scoring system, you have to understand, is a
risk-based model.
Why
paying off
your credit The biggest fallacy in this country is I pay off my credit cards in full every
cards in month; therefore, I have excellent credit. Nothing could be further from
full each
month the truth. It’s sad but you have to understand that, for example, metaphori-
gives you cally, if I am a doctor do I make more money when you’re healthy or when
less
credit!
you’re sick?

Dave When I’m sick.

Terry Right. I make more money when you’re sick, if I’m a doctor. The sicker you
are, the more money I make. If I am a dentist, do I make money when you
have cavities?

Dave Yes.

I make more money that way. If I’m a banker and I’m loaning you money, the
more in debt you are, the more money I make, provided that you can continue
the payments. So the most important thing that consumers have to realize
“The two is you want to make yourself look like a solid, financial risk... Let’s take a
primary guy who has no credit whatsoever. There’s two primary things that build up
things your credit rating. The first is what’s known as your high credit limit. The
that build
up your second is what’s known as your debt-to-credit ratio.
credit
rating!”
Your high credit limit simply means the total amount of unsecured revolving
accounts that you have in your name. For example, we exclude cars and homes
because that’s secured debt [which is easy to get]. So credit cards — Visa,
MasterCard, American Express, Discover, department stores — any type of
unsecured credit, where it’s not secured by an asset — it could be a fingerhut
Copyright 2007-2012
Consumer Publishing Group
14 NEXT PAGE

 card, a department store card, etc. For example, to determine your high credit
rating we have to figure out how many credit cards you have and what the limits
Your high are. So if you had five credit cards and they were each $1,000.00, your high
credit limit
shows credit limit would be $5,000.00. Now, obviously, an individual who has a high
how credit limit of $10,000.00 or $20,000.00 has a lot more credit worthiness than
worthy
you are
an individual who only has $5,000.00. The average person out there — has to
for credit! build that figure up as quickly as they possibly can. Most people out there —
only have maybe $2,000.00 if they add up all their credit cards. Again, you
want to add up all the credit cards on your credit report...

Second thing is your debt-to-credit ratio. This is a figure that lenders look at
and it has a lot to do with how much credit you’ll be approved for because it
tells creditors how you’ve used credit. For example, the high credit limit will
have a lot to determine in the process because it’ll tell lenders how much credit
“Your you’ve been approved for in the past, therefore, it has an impact on how much
debt to
credit ratio credit you’ll be approved for in the future. Debt-to-credit ratio means exactly
shows how what it says — total amount of debt in relation to credit. For example, if you
much you
use credit!”
had $5,000.00 in high credit and you were $2,500.00 in debt on that $5,000.00,
your debt-to-credit ratio would be 50%. You want to get that figure down.
You always want to have that figure about 10% to 30%. Again, you don’t
want it zero but you don’t want it at 80%. If you’re $4,000.00 in debt and you
have $5,000.00 of high credit and you’re making the payments, it’s not the end
of the world but you have an 80% debt-to-credit ratio. That can show to
lenders that you use credit frivolously. So the most important thing is to get
those accounts on there and keep a 10% to 30% debt-to-credit ratio.

Now the credit card that we have which is very, very effective. It’s been around
for years. What that credit card does is it allows people the ability, with no
credit check, no security deposit, and no annual fee, to get a $5,000.00 ac-
“How you count. What this can do is it raises your high credit limit by $5,000.00. So if
can add
$5,000 to you had zero credit cards you go from zero to $5,000.00 in high credit. If you
your high have $5,000.00, you double it instantly. But more importantly, let’s say, for
credit
limit and
example, you have $5,000.00 in high credit but you’re $4,000.00 in debt. You
improve have an 80% debt-to-credit ratio... So you get the credit card that we offer and
your debt it can add $5,000.00 onto your credit. Your high credit limit now goes from
to credit
ratio!” $5,000.00 to $10,000.00. So we’ve doubled your high credit limit, which is
incredible. But at the same time, more importantly, we’ve taken your debt-to-
credit ratio and done what?

Dave Well, we’ve decreased it.

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 Terry We cut it half because you’ve gone from $4,000.00 of debt on $5,000.00 worth
of high credit to $4,000.00 in debt on $10,000.00 worth of high credit. So it
reduces it all the way down to 40%. Most consumers are very quick to judge
and think, oh, it’s not a Visa or MasterCard. You have to build up to that point
and then you can get those cards easily... So it can be one the most powerful
Get your
$5,000
tools for building credit. [For more details call our 24 hour recorded informa-
credit card tion line at 1-801-350-3999].
today! For
details call
1-801-350- There’s a lot of other credit cards like that out there and, as you know, we’ve
3999. bought them all, they either don’t report to the credit bureaus or to get them to
report requires an act of Congress. And it’s unfortunate. I wish we had two or
three cards like that because we could really do a lot more for consumers.

So the first thing is, let’s say you’re able to get that credit card on your credit
report. Then what you want to do is you always want to keep a 10% to
30% debt-to-credit ratio. So if you had $5,000.00 in high credit, we want to
see you owing $500.00 to $1,500.00 at all times and making those payments on
Double
your
time. Very, very important because banks like to give credit to people who use
credit credit and that’s just all you have to remember. And with those credit cards,
card if you do that process of keeping that 10% to 30% debt-to-credit ratio,
limit with
2 easy you want to make two phone calls a year. In other words, you want to
phone make two phone calls every six months and you want to call them up and ask
calls!
them to raise your limit and you’ll be surprised if you call up and you ask, and
as long as they’re making a little but of money off of you and your payment
history is on time, almost every single time they will say yes.

Dave Really? With a good track record?

Terry Yeah. And if you do that every six months that means in three years you have
six opportunities. And we’ve literally seen clients take a $2,000.00 card and
Simple have it up to $8,000.00 in 36 months. Now there’s some other important things
secrets to that people need to know to look like a solid financial risk. Another impor-
getting
“pre- tant factor is the address that you use. Sometimes people are out of town or
approved” for convenience they may use a UPS store, a Mail Box, Etc., to get their mail.
credit
card
That comes up in the credit bureau systems as not being a real address. That
offers! doesn’t look good. That is held against you.

Dave Even a post office box?

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 Terry Post offices boxes are bad. It’s not the end of the world but if you want to
have all the cards stacked in your favor, that’s not something you want to have.
You want a residential address.

In addition, a lot of people these days are having their cell phone listed. For
some people that’s the only phone they have. That could be held against you.
We have found that if you have a land line in your name listed at the address -
“A home you don’t have to give out your address in the phone book - but if you have a
phone land line listed in your name at that residence, and it’s a street address,
and a
stable it helps tremendously in building the credit profile.
address
are key!”
The other thing is you don’t want to move. If you’re going to be in a situation,
if you’re going through divorce, or you’re going through problems, use your
parent’s address, or use a relative’s address. Don’t have that address jumping
around. We’ve seen people (and this is a true story) with 700 credit scores,
we’ll see those individuals move and we’ll see all those pre-approved credit
card offers stop for about six months and then resume again. But it’s very
easy, when you look at the risk models that banks and lenders are using. If I
gave you $20 million and said, “Here loan it out on credit cards,” you’d get
pretty good at that over time. What happens if a guy loses his job? What
Some
consumers
happens if a guy gets divorced? His address usually changes. He moves.
simply That shows instability so it’s not a miracle but these are things that consumers
dispute can use (and you can use) to apply and just a little bit goes a tremendous way.
damaging
addresses So you don’t want to change the address. You want to do everything you can
off their to keep your address stable. [Insider tip: A simple letter to the credit bureaus
report!
disputing a previous address which is inaccurate can work in removing it! You
can even dispute multiple addresses.]

Dave You want to show stability.

Terry Exactly. You want to show stability. Being self-employed is another one.
That one hurts the credit really bad. It’s to people’s advantage who are sole
Why
proprietors that they do become incorporated. Then when you’re incorpo-
being self- rated there’s two main benefits there. One, you can actually put down that you
employed work for that company. Rather than taking a draw you’ll pay FICA taxes.
hurts your
credit You’ll have unemployment if you do need it because you will be paying into
report! it. And that’s something you want to talk about with your accountant. People
who are self-employed are discriminated against.

Dave Doesn’t seem fair.

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 Terry It doesn’t seem fair but you have to work the system to your angle and being
incorporated is one more way. Now, if you go to get a mortgage that’s going to
be a different issue because if you’re more than 55% stockholder it doesn’t
count. So basically you are self-employed in that case. It’s not like you’re
working for a company and they hold it that way. So once you have that stuff
“Some
consumers
on there again, it’s a risk model. [Insider tip: Again, a simple letter to the
dispute and credit bureaus disputing an inaccurate “self-employment” status can remove it
remove from a consumers report. A recent pay-stub or a series of W-2’s from an
damaging
employ- employer can also add helpful information to your report.]
ment
information
off their
Now there’s something else that’s very, very advanced that most people don’t
report!” take into consideration when it comes to building up their credit. The first
thing is once you get your profile to a certain point — you get the $5,000 card
on your credit report...

Dave And you get the limit raised on the credit cards.

Terry Yeah. You want to work on that. So pretty soon your profile starts to look a
certain way and creditors come to you. Because most people don’t under-
stand, credit bureaus don’t make their money by running credit reports, at least
“Dressing not the bulk of it. They make it by renting the lists of those people to banks to
your credit market their credit card offers. So, for example, if a woman is dressed a certain
report to
attract the way she’ll attract a certain demographic of the male population. Well, take that
lenders and apply that to a credit report. If you dress your credit report a certain
and credit way you will get certain types of lenders coming after you. [Insider tip:
you want!”
Your job title could affect your credit score. Be imaginative!]

Dave Interesting.

Terry And once you get to a certain point you’ll get momentum. And again,
that’s where the debt-to-credit ratio and that stuff comes in. What you want to
do is you want to take the easy business. So the stuff that’s legitimately pre-
approved, you take it. If it’s got a high annual fee go ahead and take it if it’s
worth it to you. We see people take credit cards that are 30% interest. That’s
fine. If it adds $2,000.00 to your high credit, take it. It all adds up.

Dave Do you have to make a purchase and make a payment for it to be listed on your
credit report?

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 Terry Good question. You do have to make a purchase and make a payment to get
most credit cards onto your credit report. Just having the card isn’t enough.
Go buy a candy bar. If it’s high interest and it’s a $2,000.00 card just keep
“Never
apply for
$100.00 on it and make payments so you’re not getting killed by the interest.
too much But it adds $2,000.00 to your high credit limit. Let’s say you get three or four
credit all offers in a two-week period that are pre-approved. What you want to do is
at once.
You’ll look apply for one, wait until you get it, then apply for the next one, wait until
credit you get it. That way if you do get declined for one — if there is a problem —
hungry!”
you can catch it. Very, very important. Save those offers. Apply for them one
at a time as you need it and always try to take the easy business. And be very
careful when you deal with a car lender. Car lenders are probably responsible
for messing up people’s credit more than any other entity out there because...

Dave I believe you’re right.

Terry You know because you come from the car background, as you said earlier.
But the car business — a guy can walk on the lot and they’ll run out your
credit report to 6 or 10 different people and they’ll pull all those inquiries.
Those inquiries, as you know from the Credit Secrets Bible, those stay on
there for two years, which get held against you because the lender looks in and
says, this guy didn’t get approved. Why didn’t they approve him? They took
a look at him and they didn’t approve and that gets held against you. Now this
next technique here is one that not very many people know about. The credit
profile, your credit file is basically, many different layers. One layer
might be that you’re male. The next might be that you’re married. The next
layer might be that you live in a certain ZIP code. Obviously, more affluent ZIP
codes in the country, that does play a factor versus if you’re say, in Las Vegas
where there’s probably a high rate of gambling problems and substance abuse
and whatnot. So this technique plays on that. And again, very few people
How you know about this. So you do all the right things. You’ve got your debt-to-credit
can build ratio there, you’ve got the solid address, and you’re building stability.
credit fast
by using
the “ad- Well, what happens is we see that financial institutions will team up with
vanced
profiling”
various say, extra layers — it’s another layer to the profile. For example,
technique! let’s say we have people with a certain credit profile but then we find out they
are a member of a certain trade or non-profit organization. Let’s say it has to
do with accounting (or finance) or let’s say they’re environmentalists or they’re
health oriented. I don’t want to give out the name of any organization but we
first learned about this many years ago when there was an individual who
didn’t really have much credit at all and he joined an organization — and this
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 was an environmentalist organization. It was $10.00 a year and they give you a
tree to plant in the ground and this and that. It’s a great organization. He got a
credit card offer in the mail and it was sponsored by this organization. Like
you might see a credit card from the NRA if you’re an NRA member, for
example.

Dave Seems like every large company has their own credit card.

Terry Exactly. He got a credit card offer. This individual should have never been
approved for this credit card. He got a $5,000 MasterCard. The guy had one
secured credit card on his credit report and was approved for that.

Dave Just because of his profile?

Terry Well, it adds another layer. Let’s say we take a guy who’s a 30-year-old.
His debt-to-credit ratio is 30%. His high credit limit is $10,000.00. He’s been
at his address for two years; his job for a year. That gives us a pretty good
deterrent but if we find out that say, he’s into mountain biking...

Dave Okay.

Terry For example, there was a client that we had who was (we’ve seen track records
of this over the years) part of a financial services type organization. He was
not a Certified Financial Planner, he was not a CPA but he belonged to that
organization. You could’ve belonged to it. I could’ve belonged to it.

Dave Open members.

Terry He got a sponsored endorsed mailing for a credit card with that company’s
logo through that trade organization for a $25,000 Visa card. And this was an
individual whose high credit limit was probably, less than $10,000.00. Again,
this is not coincidence. It’s very effective. The same thing happens out of
How colleges. And this is probably the most prevalent form that most people who
colleges listen to this audio program can relate with. It’s not uncommon for banks —
use this
approach
the big banks to show up at the college and say, here, sign up for our checking
for stu- account, sign up for our credit card, whatever. We’ll give you a bottle of soda,
dents! tickets, or this and that. Because they know that those people that are in the
school system are going to be earning money more likely than the average
person out there.

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 Dave Or do they think their parents are going to pay for it?

Terry Yeah. Exactly. We’ve seen that students build credit much faster than working
folk and it’s unfortunate. But again, these are angles that people can use to
build their credit quickly to take advantage of them. Again, let’s come back
“How to full circle. When you build up that credit you can have access to huge amounts
borrow up of cash. You can access $25,000 of cash in 24 hours with no credit check,
to $25,000
in 24 hours no co-signer and if you want (the interest rate’s going to be high) but you
with no can take 30 years to pay it back. Again, that’s the kind of thing that’s used
credit check
and no co-
for short-term investments or business opportunities or that sort of thing.
signer!
The other thing now, because credit card marketing has gotten so competitive ,
is that we see, for example, let’s say I have $10,000 of debt with MBNA. Well,
Discover card comes along and says, here, zero percent APR for nine months,
right? And they say, we’ll pay it off or they give you these balance transfer
checks. Well, the other thing when you have excellent credit and you build up
your high credit up to $30,000 or $40,000 or $50,000 and say, for example, I
have one client who just got through a mountain bike company a $7,000 credit
card.

Dave Okay.

Terry And that wasn’t the amazing part. The amazing part was obviously this gentle-
man didn’t have much credit to begin with and again, it was a profile. Moun-
tain bikers are a demographic. They’re very health oriented. It’s a very kind
“A $7,000 of discretionary income, that sort of thing. But it wasn’t so much that. This
credit card
with
individual got $7,000 and the cash advance fee was only $50.00 but the most
virtually no amazing thing is that the money was interest free for nine months.
credit!”

Now imagine if you had access to not $20,000.00 or $30,000.00 but just
$7,000.00 for nine months and you paid zero interest. If you thought
about that one for a few days you could probably find a way, with very little
risk and huge upside gain, that you could take that $7,000.00 and make money.
Look at that — where you’re going to be. Not six months from now, not two
years from now, but 10 or 12 or 20 years from now by taking advantage of
those kinds of opportunities over and over because you did the work and you
built up your credit. Another thing when it comes to annual fees. One of the
things we say in our promotions is never pay an annual fee for any credit card
ever again if your credit score is over 750.

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 Dave Why not?

Terry Again, if you’re keeping the 10% to 30% debt-to-credit ratio, they’re making a
little bit of money off you, and they like you as a client, you can simply call up
and act like you want to cancel the card. They’ll always ask because they’re in
a department and they want to save those accounts. Tell them you’re going
to cancel the card and nine out of 10 times they’ll say, “Oh, we’ll go
ahead and waive the annual fee for you.”

Another one that we talk about is how to save up to $100,000.00 or

more in mortgage interest without refinancing your home. It’s amazing
“How to
save up to how many people don’t know about this. There’s two different things. Some-
$100,000 times people get an interest-only loan and you’ve got to have good credit for
or more in
mortgage
that. What people will do is they’ll make a payment — they’ll make
interest their mortgage payment and then they’ll make a separate payment which
without goes basically towards the interest or down on principle. Now the re-
refi’ing!”
verse of that, again, this is normally for people that have good credit, is they
will get a separate loan that does nothing but pay down against the principle to
knock that down.

Dave Okay.

Terry And that’s something that is one of the most effective things to do. But again,
it’s just like paying off a credit card. If you pay just a little more — and I wish
I had the stats in front of me. But if you pay just an extra $100.00 or $200.00
a month — where you’re at 10, 12 years down the road — I mean, that’s like
the whole bi-weekly mortgage thing. Bi-weekly mortgage everybody’s familiar
with. Of course, really what’s happening there is you’re making an extra
payment per year. Rather than making 52 payments you’re making 53 or 54
“How to payments. But over a 30 year term, what that adds up to is you’re making
substan-
tially about 30 or 60 extra payments and, of course, those all end up going towards
shorten the the principle, which more people need to take advantage of that. That’s a real
term of
your loan!”
example of where a little bit of money goes a long, long way.

Dave And that shortens the term as well.

Terry Yeah. And one of the other things is the secret to buying your first or
second home with no money down, which is a real interesting one.

Dave No money down?

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 Terry All of the people selling these courses, it all — and it says, you know, no credit,
bad credit, no money — it all revolves around the same concept. That
concept is that the seller carries the loan. Plain and simple! Now there’s
“How to also another method called lease purchasing which is excellent way for the
buy a
home with average consumer to purchase a home with very little money down. One of the
NO most reputable guys in this field is Claude Diamond, and I think he’s got the
MONEY
DOWN!”
best course on the market for doing this sort of thing.

Dave What is the truth about the free government money?

Terry That’s a strong appeal. Those were real big back in the early 90s and late 80s.
The money is available but it is a little bit of work to get it and the two main
important things people need to know is that one, you have to have an organiza-
tion, in most cases, with a track record of what you’re...

Dave A non-profit?

Terry No, it doesn’t have to be non-profit necessarily but you have to — you have
to have a cause that you’re using it for. It’s not like, “Hi, my name’s Joe. I
need some money.” So you need to have an organization and something good
that you’re going to...

Dave Do I have to write a grant proposal?

Terry Well, the second part. The second part is having a professionally, well
written grant proposal and there’s actually businesses and all they do is
actual grant writing. So those are the two main things. A lot of people are
The truth misled by that and buy these big, huge books and I think probably 1/10th of a
about
government percent of the people that buy those packages ever use them. And if they do,
grants and they realized the money really isn’t free at all after they consider the amount of
“free
money.”
work it takes to get a grant funded.

Dave Right.

Terry So let’s get on the topic as far as for people that have bad credit. Now the first
thing when it comes to repairing credit is that individuals have to understand
that — the only information that can remain on your credit report is not
necessarily what’s inaccurate. Not really what’s correct but what can
be proved as such. Now in the Credit Secrets Bible, as you know, we have
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 published many techniques other consumers have used to go and do that and
there’s some interesting stuff.

What
Now let’s talk for a second about Chapter 7 Bankruptcy, which is kind of
banks and interesting. There is actually a way you can actually build excellent credit
credit card after a Chapter 7 if you get into a worst-case scenario where that hap-
companies
don’t want pens. And the reason is (and we saw this years ago and we were really shocked
you to about how quick people could build their credit after a Chapter 7) again under-
know about
bankruptcy!
standing the bigger picture of the credit system. People who have excellent
credit are a very prime market and that’s who everybody is going after, be-
cause if you’re a lender you basically make money putting people in debt. You
make money off interest. That’s your business.

Dave Right.

Terry So basically what we saw is if you have really great credit, if you’re a 700-plus
credit score, everybody and their brother is knocking you down. So what
happens is everybody’s focusing on these prime targets. So what happens
then is there’s been a whole surge that we’ve seen of other lenders that have
said, “Hey, we’ve got all these people that have filed Chapter 7. They’re
bankrupt. Hey, they’re debt-free.” Right?

Dave They’re debt-free now.

Terry They’re debt-free but here’s the other thing. The hardest type of credit to
get is unsecured credit. It also has the highest (we found) impact on
one’s credit score because it’s unsecured and it’s a higher risk for the
lender. So there’s all these lenders we see going out and kind of going the
other direction. Rather than going after all the prime people where it’s highly
competitive, they target people with Chapter 7 if they can get 12 to 24 months
of good payment history reported. They make a good risk because one,
Start
building they’re debt-free and two (this is the big one) they’re not protected by that
your credit bankruptcy law for another five, six or seven years. So the key is with
before you
file for
people that do Chapter 7 is that you start building your credit before
bankruptcy! you even go into it. You don’t have to put everything in the bankruptcy.
Most people, they file bankruptcy, the depression that comes, everything else,
it’s usually involved with divorce and other, illness or loss, they don’t do
anything for three to five years. They don’t do a thing. They just forget about
it. But we see people that start building right away or preferably before.

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 Dave Even before?

Terry Yeah, because you could get a catalog card or trade line for $5,000.00, get that
on your credit report but don’t include it in your bankruptcy. So I get people
to do that now and then. I mean, we’ve seen people 36 months they’re 700
credit score. It’s just amazing. But it’s not a miracle. When you look back
and you really think about it there’s no mystery to it. It’s just understanding the
system.

Chapter 13 — that’s a whole other one. In our opinion that’s NOT one
people should do because we find that it has almost the same impact on
people’s credit as a Chapter 7. Most of the people that do Chapter 13 —
“Why they end up going into a Chapter 7 anyway. So that’s always one that should
consumers try to be avoided. My opinion is if you have to go BK just do it Chapter 7. Be
should
avoid
debt-free. Come out the other side. Start building your credit right away,
Chapter preferably before. [Insider tip: Hundreds of thousands of Americans can no
13!” longer qualify for Chapter 7 bankruptcy due to changes in the law and may be
forced into harmful credit counseling and then Chapter 13. Keep in mind a
large percentage of 13’s end up going into 7 giving consumers 2 BK’s!]

Dave That’s interesting.

Terry One easy phone call that’ll slash your credit card payments in half. Call
up your creditor, tell them, “I can’t pay. I don’t want to file bankruptcy. Can
“One easy I pay half?” You can tell them, “I can’t make a payment this month. I’m calling
phone call
that can
you up.” So many consumers don’t communicate with their creditors. If you
slash your don’t communicate, they get freaked out and scared. If you just call them up
credit card and say, “Listen, here’s the predicament I’m in.” And that’s like the debt
payments
in half!” negotiation thing. People have to set the stage for it.

Dave Right.

“A good
So a good software program — it’s free to try — to know what to pay on
software their debt and manage all that is Microsoft Money. You can get a free
program to trial download by going to any search engine and typing “microsoft money
manage
your trial”. It’s an excellent program. Having a budget. Getting all your numbers
finances!” out and start tracking everything.

Dave Well, it sounds pretty nuts and bolts to me.

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 Terry A couple of other things I want to touch on beyond the topic of credit. I
also want to talk about the two secrets that late night infomercial gurus
Two things don’t want you to know about making money with tiny classified ads. [I
they don’t
want you to
would have saved thousands of dollars if I’d knew these two important se-
know! crets years ago!]

Dave I’ve seen them.

Terry It makes me absolutely sick. There’s two things they don’t want you to know
and I want to bring this up. The first is market density. How many people
(in your demographic) are picking up the newspaper looking to buy your little
The con- widget that you’re selling? You see people that buying these packages on late
cept of
market
night TV. They have good intentions and they run an ad and it doesn’t work
density and and they’re being led to failure, basically, because in a newspaper you have a
responsive- very low market density. Everybody picks up the paper. We don’t know what
ness!
sections they read. The other thing, equally as important, is the mail
order responsiveness. Okay. Some people buy clothes, say women. Most
women love buying clothes.

Dave They do. They do.

Terry Some women buy clothes by mail.

Dave Yes, they do.

Terry That’s a totally different demographic. There’s people that buy vitamins at the
store at GNC or whatever and then there’s people that buy vitamins through
the mail; two totally different animals. So you need market density, mail
order responsive. All these people on late night TV selling these packages on
how to get rich running tiny ads and the percentage of people that are buying
an ad in a newspaper and selling a mail order product, it’s not a mail order
medium, for the most part.

Dave Makes sense.

Terry We get a lot of people that call up and ask us about this stuff so I’m going to
talk about that. The other one is this infamous stuffing envelope thing.
The one way to actually get paid to stuff envelopes at home and the real truth
about all those easy work, excellent pay, get paid to assemble products...
Well, getting paid to stuff envelopes — the only legitimate way to do
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 that is to be in the direct mail business and get paid to sell information
by mail. We’ve had mailings where we’ve mailed a thousand letters and we’ve
The one made $2,000.00 in profit after all the dust settled. Well, we made $2.00 per
legitimate
way to get
envelope. We did essentially get paid to stuff envelopes but there’s no com-
paid stuffing pany that’s going to pay you to do that, which takes us into the work-at-home
envelopes! companies. This has been going on for 20, 30 years now. These companies
that tell you that they’re going to pay you to make baby booties at home and
these ads run all over the country... It’s a complete scam. Listen... If the
company had an opportunity to make widgets at home why wouldn’t
they just hire somebody locally? Why would they ship the product three
times instead of shipping it once? Because they have to send the materials to
the guy or gal sitting at home assembling the materials. Then that customer (the
person assembling) has to take the finished product and send it back to the
company and then the company has to ship it to the customer.

Dave Seems kind of cumbersome.

Terry And it just drives me insane because we get clients that call up who get ripped
off for this stuff day after day after day after day. It continues to go on
because these companies will set it up to look legitimate. But you know what?
It has a strong appeal to folks. Make money working at home. And there’s so
many people looking to do that and it continues to go and the government
can’t stop them all. It’s really unfortunate.

Dave Yes, indeed.

Terry Back to credit for a moment before we wrap this up. We try to advocate that
credit (if you’re going to use it) shouldn’t be used for consumer items. It
should be used for things like education, medical emergencies or really for
making money. When you have a 700-plus credit score you can go to a
development over here, you can buy a 2,000 square foot home with $500.00
down and get a no-doc loan. No income verification. No nothing. It’s just
absolutely amazing. Apply the techniques slowly over time and where
you’re going to be is night and day. That’s basically it. Unfortunately
we’re out of time. We could go on. I have 20 other things here that I wanted to
talk about but...

Dave No problem. I appreciate your time. Bye now. [End of recording.]

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 FREQUENTLY ASKED QUESTIONS
Q. On page 11 you talk about leveraging credit through an investment or business. Can you
give a few examples?

A. Sure. What other consumers have done is used their credit to purchase an investment property
such as a fixer-upper or foreclosure. Other types of investments could be in automobiles, art, antiques
- items that gain more value over time or items that can be bought wholesale and then sold retail. One
example would be an entrepreneur buying a large truck and starting a moving business. Use your
imagination!

Q. On page 12 you talk about why paying credit cards off in full each month gives you less
credit. The concept seems so contrary to what I’ve been taught. Can you back that up?

A. Yes. According to MyFico.com who developed scoring software for the major credit bureaus, here’s
what they had to say in one of their free online booklets: “...having a small balance without missing a
payment shows that you have managed credit responsibly, and may be slightly better than carrying no
balance at all.” That’s right from the horses mouth.

Q. If my debt to credit ratio is over 30% what’s the fastest way I can reduce it?

A. Easy. Get approved for our $5,000 credit line by first calling 1-801-350-3999. This account adds
$5,000 in unsecured credit to your high credit limit. If that’s not enough unsecured credit to get you
below 30% there may be other options. Call anyway. At that point you can then begin budgeting or
negotiating to pay down other debt.

Q. How do I tell if a “pre-approved” credit card offer is legitimate and whether or not I should
apply?

A. Read the “fine print.” Make sure your name and address was obtained from one or more of the
credit bureaus (it should list that). You can also check your credit to see if the company has done a
promotional inquiry on your report. In addition, never apply unless you’re 95% sure you’ll get approved.
If your scores are below 600 even banks that cater to consumers with bad credit (also known as the
“sub-prime lending market”) will probably decline your application. So get that score up by removing
bad items and adding good ones!

Q. What about phone disputes?

A. Phone disputes are an excellent way to get items removed quickly. However, each bureau is
different. Make sure the dispute is factual. It also doesn’t hurt to gain a little sympathy from the person
on the other end. If you’re in a bind, explain that to the operator and ask for their help. Example: You’re
going to be evicted in 4 weeks and you need to qualify for a loan. If the account is not deleted you don’t
know how you’ll keep a roof over you and your kids. But be honest about the situation. You don’t need
to lie. We are all human and if you’re authentic people recognize that and you’ll get better results.

Q. I have good credit. Should I still add primary accounts to my credit report?

A. If you have a triple-A credit rating, it never hurts to get more credit! Primary accounts are like gold.
In the event you decide to close an account (or a creditor goes out of business), you’ll have a backup
account to offset any changes.
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 WHAT YOU NEED TO KNOW ABOUT
THE “VANTAGESCORE” AND THE
“FICO EXPANSION SCORE” ...
For decades lenders have been utilizing your main FICO Score (also known as Classic Fico) to
determine if you are credit worthy. However, the three major credit bureaus, Equifax, Experian and
TransUnion have joined up to introduce a new scoring system called the VantageScore. With the new
VantageScore, your credit score will look like a grade school report card. I am not joking! Ranging
from 501 to 901, the 900’s are an A, 800’s a B, 700’s a C, 600’s a D, and 500’s an F. Notice how much
more broadly the numbers spread is with this new score (more on that later).

Now, because of the growing market of credit challenged consumers (and the fact that MyFico’s
market share is being threatened by the VantageScore) the Fair Isaac Corporation decided to develop
their own new scoring system called the “FICO Expansion”. This score is based upon recurring items
that are not traditionally reported to credit bureaus, such as rent, utility, payday advance, insurance,
day care, telephone, and child support payments. Many companies have sprung-up touting the ben-
efits of building this score and paying them to help you do it. Keep your pockets closed until you’ve
finished this chapter, please!

MORE ABOUT THE “FICO EXPANSION SCORE”!

According to MyFico, their Fico Expansion is an alternate credit scores designed specifically to help
lenders that fail to receive a traditional Classic FICO score due to nonexistent or "thin" credit histories.
This new expanded score is separate and distinct from your regular Classic Fico. What do they say
these new expanded scores will accomplish for consumers and businesses?

1. “The new score helps lenders better serve those who are typically treated like second class citizens
because it uses alternative data sources, thereby allowing lenders to more confidently extend credit to
consumers that are typically excluded from the traditional credit-granting process due to insufficient
credit histories” (i.e. consumers who have not built up their Classic Fico Score.)

2. “It can also help consumers gain access faster to traditional credit products like credit cards, car
loans, or home loans from reputable lenders by evaluating financial relationships that are absent in
credit bureau reports” (if a consumer can’t or doesn’t know how to build their Classic Fico Score, why
make it easier for them to get credit? They need education, not credit!)

3. “It's a credit risk score. It accurately predicts the likelihood that a consumer will become seriously
delinquent in the 24 months following scoring” (we are unaware of any independent data which sup-
ports that this alternate scoring will accurately predict anything except more services to sell you like
expanded scores, monitoring, and reporting services). This score is a complete joke until banks and
lenders start using it - if they ever do.

MORE ABOUT THE “VANTAGESCORE”

Why another score? With the Classic Fico consumers often find point discrepancies in their scores.
The credit bureau industry wants to solve that! According to them, the VantageScore was created to
produce a model that scores consumers consistently across all three companies. This is just plain
baloney because when asked, will there be variations from company to company, the industry re-

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sponded, “Differences in scores will occur when the underlying data content is different”. Obviously!
The contents of your credit report will always vary from bureau to bureau. Therefore, the underlying
data on all three of your credit reports won’t be the same which will create inconsistencies. They have
not solved the very thing they claim they have solved! In addition, consumers with a VantageScore of
720 (average) will be more prone to think their credit is good (misled because a Classic Fico of 720 is
excellent) which will probably reduce consumer disputes. After all, think about it - why would they
change the numbers? Less disputes, and they make the “cake” off scoring revenue. A win-win for the
credit bureaus!

Want the truth? Here’s why they created the VantageScore: Money. The big three credit bureaus
are trying steal market share from the consumer credit scoring market - more specifically the Fair
Isaac Corporation who designed and is paid royalties from the Classic Fico Score. What’s at stake?
An industry that’s worth $5 billion dollars. This is why for the last 30 years the national credit bureaus
have systematically (and methodically) destroyed the credit reporting industry. Did you know there
used to be over 2,500 local bureaus, assisting consumers in their own towns? Now there are just a
handful. Recent studies have shown that up to 70% of credit reports have some type of error, many
serious enough to cause turndowns for credit, housing, or even a job. Scoring is the last thing credit
bureaus should be worrying about. They should be doing their job: providing accurate information!

THE SUPPORTERS CONTINUE TO RANT...

Supporters of these new scores claim that without the use of them, lenders must process their
credit applications the old fashioned, time-consuming, and costly way. Each applicant must provide
documents such as copies of rent and utility payments, verification of employment history and home
address, and others. Even if their applications are approved, they often pay higher interest rates be-
cause, with little or no credit history to consider, lenders have difficulty assessing credit risk accurately.
If they have little or no credit history they probably shouldn’t be buying a home. Why not start with a
good course on building and managing credit responsibly!

According to one popular lending website, “As many as 50 million consumers -- especially new
immigrants, young people and women who have been recently divorced or widowed -- aren’t in the
credit bureaus files because they lack traditional credit scores. As a result, they may find it difficult to
establish their credit worthiness and may be shut out of today’s credit economy. They may have
difficulty buying a house, obtaining a credit card or gaining approval for other financial transactions.”
This sounds like something you’d hear from a group of bankers! Education is not as profitable as
finding more creative ways of putting more consumers into debt.

WHAT SHOULD CONSUMERS DO?

Build and manage their Classic FICO Score. Getting into credit bureau files is very simple.
Adding new trade lines is extremely simple. We all know the main problem with the credit bureaus is
NOT scoring discrepancies... It’s incorrect and incomplete data on credit reports!

When MyFico introduced an update of its own scoring system in 1999 (called NextGen FICO), most
creditors stuck with Classic FICO. Until these new scores gain widespread acceptance and popularity
(which they may never do) they’re a complete waste of time and should be completely ignored.

If your credit is horrible, we’ll discuss how FACTUAL disputes done correctly will get you the best
results in raising your Classic FICO Score. If you have no credit whatsoever, this course covers
several ways to get new accounts reported to your credit file to build your Classic FICO Score.

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 USE THE SAME “3-STEP SYSTEM” SOME ATTORNEYS
CHARGE $795 FOR TO REPAIR YOUR CREDIT
YOURSELF QUICKLY AND EFFECTIVELY FOR FREE!
What’s the missing link when it comes to having derogatories removed and building
your credit score? Leverage. Getting enough leverage against your creditors, the
credit bureaus and debt collectors is key. It’s also one of the most common ingredients
missing from most credit repair courses. The best way to have the leverage you
want is being in a position to sue them. It’s the most powerful negotiation tool out
there. Rarely will you need to sue (and if you need to, you don’t have to.) Having the
option does give you a better position for negotiation.

CONSUMER PROTECTION LAW AND YOUR RIGHTS!

In this chapter I’m going to show you how to recognize and document the most
common violations of the Fair Credit Reporting Act (FCRA) and the Fair Debt Collec-
tions Practices Act (FDCPA). I’m also going to teach you a whole new way of
looking at your credit report and the items reported on them. By recognizing and
disputing incorrect reporting (instead of generic “not mine” disputes) you’ll have the
best chance of getting the results you want! First you’re going to need your reports.

THE ONE “GOVERNMENT SPONSORED” SOURCE TO GET A

FREE COPY OF ALL THREE OF YOUR CREDIT REPORTS!

You can request a free copy of your reports by calling the Annual Credit Report
Service at 1-877-322-8228. There is also a special form in the pages to follow you can
fill out and mail to get your free reports. You will get each bureau’s “standardized”
report. If you order your reports online, you will not get these standardized reports, and
you’ll be inviting someone to steal your personal information such as your SSN, date of
birth, or credit card number. It’s not worth it! In addition, the standardized reports are
much easier to read, and this chapter is based off using those reports.

THE ONE PLACE TO GET YOUR SCORES THAT WON’T LIE...

Another place to get all three of your credit scores is from a mortgage lender. Mort-
gage lenders can pull what’s called a “tri-merge” report. However, the major
drawback is you will get a hard inquiry on your credit report which can lower your
scores. These reports can be a little tough to read unless you’re used to them. The only
time consumers should run a tri-merge is when they’re serious about financing a home in
the next 60 days. Other than that, you don’t want the inquiry!
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 WHY TO AVOID “FREE CREDIT REPORT” SERVICES!

Most free credit report services give you the first 30 days free and then nail you with
some type of monitoring fee. Please don’t get your reports from one of these services.
Their reports are usually missing critical data that you’re going to need in order to factually
dispute derogatory items off your report. And, if you forget to cancel within the 30 day
“trial” period, they usually hit your credit card with some nonrefundable fee. It’s not worth
it. Your credit is much more important than that.

HOW YOU CAN GET FREE IDENTITY THEFT PROTECTION!

If you feel you could be the victim of identity theft now or in the future, you can place a
“fraud alert” on your credit file and get a free copy of all three of your reports. After you’ve
placed a fraud alert on your file, you can simply write each bureau and request your free
reports. Make sure you provide plenty of documentation to prove your identity. However,
it’s recommended you only do this if in fact you have been or are the victim or identity theft
(or have reason to believe you could be soon). Don’t just do this for the free reports.
Why? Once a fraud alert is placed on your credit file, it’s much more difficult to obtain new
credit until the alert is removed.

This alert accomplishes several things. First, for a period of not less than 90 days, for
any new credit to be approved, the creditor must first contact you and obtain authorization
(you will need to provide the credit bureau your telephone number). If someone else tries to
obtain credit in your name, you’ll be for first to know. Not only can you extend this
fraud alert for 7 years, you can also remove it at any time. Save your money on ID
theft insurance which provides little more than a false sense of security.

PROTECTING CREDIT WHEN “BACK IN THE CHIPS”!

Many consumers also use this technique after they’ve built up their credit as a way of
monitoring and protecting their high score. After all, the potential for ID theft with excellent
credit is much greater. Should you find yourself in the market for some type of investment
that requires credit, you can simply write all three bureaus and have the fraud alert removed.
If you would like to place a fraud alert on your credit file simply call Experian at (888) 397-
3742. For Equifax, call (888) 766-0008. And for TransUnion, call (800) 680-7289.

THE BEST PLACE TO GET YOUR CREDIT REPORT & SCORES!

If you don’t qualify for a free report, then get your credit report and/or credit score from
each credit bureau either by phone or mail. Again, if you order your reports online, you

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won’t get the standardized version. The bureaus may also require you to enroll in additional
services like credit monitoring. In addition, you will have limited access to your credit file
(sometimes as little as 30 days). You can contact the bureaus here:

EXPERIAN EQUIFAX TRANSUNION

P.O. Box 2104 P.O. Box 740241 P.O. Box 2000
Allen, TX 75013 Atlanta, GA 30374 Chester, PA 19022
(888) 397-3742 (800) 685-1111 (866) 726-7388
(order score &/or report) (order score &/or report) (order score &/or report)

THE “4TH LARGEST” NATIONWIDE CREDIT BUREAU AND

HOW IGNORING THEM COULD COST YOU A FORTUNE!

I will briefly mention the “4th largest credit bureau”, which is Innovis Data Solutions.
Credit card companies buy lists of consumers who meet their lending criteria (this a com-
mon practice known as “pre-screening”) from the credit bureaus and Innovis currently
offers a service that helps these lenders CLEAN their list prior to mailing pre-approved
credit card offers. Therefore, any adverse information on a consumers Innovis file (accu-
rate or not) could prevent them from getting pre-approved credit offers in the mail! For
instructions on getting a copy of your Innovis report, call 1-800-540-2505. If there
are inaccuracies on your Innovis report, you can dispute them the exact same way you
would if you’re disputing with the big three credit bureaus.

A “PERFECT” CREDIT REPORT IS NOT

ALWAYS THE HIGHEST SCORING ONE...

Let’s talk about credit scoring for a moment because this is a very important subject. If
your FICO score is in the 500’s, or even 600’s, we want to see you get into the 700’s and
as quickly as possible. Does this mean getting all derogatory information off your credit
reports? Not necessarily. The biggest credit myth out there is that a “perfect” credit
report is always the highest scoring.

The reason a “perfect” credit report is not always the highest scoring is because some
derogatory accounts can actually raise your credit score, or having them deleted can actu-
ally lower your score more than just leaving them reporting. For example, if you had a
$5,000 charged-off account - paid in full - the balance, paid status and payment history
could account in the scoring of your file. That’s why deleting some derogatory accounts
can actually lower your credit score!

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 WHO RULES THE SCORING SYSTEM...

The credit scoring system is designed to maintain and increase creditor profitability.
The only way these scores would be helpful to consumers is if the model remained
fixed. Then we would be able to figure out the entire model. Some have suggested there
are 10 to 100 different models a consumer can fall into. For example, if someone has a lot
of late-pays they may fall into a late-pay model. When the consumer is then able to get
those late-pays removed, their score does not rebound to its previous level. In some cases,
it can actually temporarily go down!

Another example would be someone with a high score of 720. They apply for credit
and get a hard inquiry and their score remains unchanged. Then someone with a low score
of 600 gets a hard inquiry and their score drops up to 35 points. This multiple model based
system makes it impossible to predict with 100% accuracy how much your score will
change in any given situation. It’s important to understand this going into the process and
to keep checking your scores as you make improvements!

REVIEWING YOUR CREDIT REPORTS AND

DETERMINING WHAT TO DISPUTE...

First, you need all three of your reports. Start out by examining the derogatory items.
Look for items that are missing the name of the creditor, account number, balance, etc.
Some items will naturally be missing these things like an account that was never paid won’t
have a date of last payment. It should at least say N/A, however. If it’s blank, the creditor
did not report the item properly because it’s not complete. You’ll then want to look at
each derogatory across all three credit reports to find inconsistencies. If you find
different dates, balances, or any other inconsistencies on derogatory accounts consider
contacting the original creditor for documentation.

HOW TO MOST EFFECTIVELY DISPUTE

Most people dispute all the negative information they can find in their credit reports.
Very often a few items get deleted that way. But the problem is what if the item gets
verified? The bureaus can reject any further disputes that are similar as “frivolous” for up
to 12 months! That’s why factual disputes are best. If your disputes are factual and the
bureau does not correct or delete the item, they’ve now violated the FCRA. Now you’ve
got some leverage. Without any violations, you’ll have no leg to stand on and you’ll be
blowing hot air by filing worthless complaints to regulators (who won’t do anything to help
you anyway).

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 Again, what’s most important here is to try and make your disputes factual. Also be
careful what you ask for (only ask for correction or deletion when it will most likely benefit
your score). Believe it or not, most of the items on your credit report will not be accurate!
They’ll either be incomplete or contain errors. Keep in mind there are some negative
items which have no effect on your score and in some cases actually increase your
score! Like older paid accounts with no derogatory marks. The negative items which lower
your score the most are your primary target!

1.) MISSING CREDITOR NAME, ACCOUNT NUMBER, ETC.

If deletion of an item is desired and you can find no other factual errors, then dispute the
missing data with the credit bureaus. Example: “This listing is incomplete. It’s missing the
date of last payment. The creditor is [name] and the account number is [account number].
Please delete it.” If you can point out more than one error, don’t do it. One at a time. If the
credit bureau corrects one error, at least you have another legitimate reporting error to
dispute and potentially get deletion.

The credit bureau may just correct and update the item. If that happens, get documenta-
tion from the creditor to verify the bureau has updated the item correctly. In some cases,
the creditor will have no record of the account and the credit bureau didn’t actually
update anything (FCRA violation). It doesn’t hurt to call each company who is reporting
a derogatory item on your report and check to see if they have a record of the account. If
they don’t the likelihood is the account will not get verified.

Ask the creditor for documentation so you can follow-up with the credit bureau, if
necessary. “The creditor has no record of my account. See enclosed copy of letter from
creditor. This account could not have been updated. Please delete it.” If the creditor will
not provide anything in writing, get the name of the person you spoke with, their phone
number, and provide that information to the credit bureau.

2.) INCORRECT BALANCES

This is most common with collections because some debt collectors want to inflict as
much damage as possible to your credit score in order to persuade you to pay them. Look
for balances that are higher than the “high balance.” Obviously, that’s a mathematical
impossibility but it happens. If the account has been sold or transferred to another lender or
collector, the balance on the original account should be ZERO. If the account is lowering
your score, then ask for deletion based on the strongest factual error you can find.

Sometimes a positive account is transferred or sold to a second lender, but the original
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lender is still showing an open account with a zero balance. If there are no serious deroga-
tory notations on the account, why say anything? If the account is a paid charge-off or
paid-collection, you might just want to leave it on your credit report as long as it’s being
reporting correctly. Removing accurate neutral items can sometimes cause your score to
drop!

3.) INCORRECT CREDIT LIMITS

Let’s say you got approved for a $10,000 credit card. But your credit report shows the
account has a credit limit of $100. That’s because some banks report your ‘highest bal-
ance’ as your credit limit. If you’re rebuilding your credit this is suicide for your credit
score and these banks know it. The only reason for this is to prevent consumers from
building up their credit scores and getting additional credit at a lower interest rates. This
helps creditors keep some percentage of consumers stuck in sub-prime status. That’s more
profitable for the creditors and the bureaus make money either way.

Even the Federal Trade Commission is well aware of this business practice but has done
nothing about it. Possible solution? Try mailing a copy of your statements to the credit
bureaus and ask for complete reporting of the credit limit. If they refuse, keep mailing
them every month until they comply. If all else fails, charge as much as you can on the card
and promptly pay it back.

On a side note, I’ve seen collections reported with a “credit limit” too. How can a
collections account have a credit limit? This may inflict more damage to your score because
not only does the “date assigned” factor into your scoring, but the “credit limit” may also as
well. That’s another example of incorrect reporting that can be factually disputed. Demand
deletion. In an ideal world it’s the responsibility of the credit bureaus to catch these kind of
errors - not yours.

4.) DELINQUENCY/LATE-PAYS AFTER CLOSED

If the account is closed or charged-off, there should be no delinquencies after the

closed date. If the closed/charge-off date is not listed on your credit report, you’ll need to
write the creditor. Supporting documentation can mean the difference between deletion and
correction. With or without documentation, factually dispute the late-pays after the closed
date. If the account is a derogatory one and it’s unpaid, then demand deletion. Also keep
your eye out for “delinquencies for $0” and incorrect notations like “$4,506 charged-off,
$123 past due.” Amazing, isn’t it! But it gets worse...

You’ll also want to look for undated late-pays. If there’s no date, how do you know
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they’re accurate? Write the credit bureau and ask them, “Please provide an itemized list of
the date of all late pays for account numbers [xxx], [xxx], [xxx]. Thank you.” Contact the
creditor. If the creditor can document the late-pay dates make sure they match the dates the
credit bureau provides. If the late-pay dates are after the closed date again, ask for deletion
of the item with the credit bureaus.

5.) INCORRECT ACCOUNT TYPES

Another common reporting mystery you’ll see is when a charged-off collection account
type is as an “open account.” How can a charged-off account be open? It should say
“closed account,” “charged-off,” or have no account type at all. If it’s a paid collection
that’s older than 2 years from the date assigned, you might as well leave it on. Removing it
could actually lower your score. If it’s unpaid always go for deletion!

Some incorrect account types can be good for your score. For example, a secured
car loan getting reported as a revolving account. If you’re building your credit that would
help! If you have a ton of unsecured credit you may want to have that corrected. Showing
a variety of credit (i.e. unsecured, secured, mortgage, etc.) helps “round” out your credit file
and increase your score. Another example: The double reporting of a positive account. It
happens. Why say anything?

6.) DATE OF LAST ACTIVITY

You’ll be hearing this term again and again, abbreviated as DOLA. This is a time stamp
of when the account was last permanently delinquent. Let’s say the DOLA is January, 2000.
Most items will stay on your credit report for 7 years, or until January, 2007. However this
date can change if the date is “re-aged” or moved forward. If you find re-aging - which is
incorrect reporting - you can get deletion!

Re-aged accounts look newer and thus more resalable to some third parties (since the
account is newer it’s also more damaging to your credit score.) Check the DOLA on
each of your derogatory accounts, across all three bureaus. They should all be the
same date. If there’s any substantial difference in any of the dates, there’s probably re-aging
going on. Remember, only Equifax reveals the DOLA. You’ll have to figure the other two
out on your own or contact the creditor. More on that in the FAQ’s.

THE CREDIT BUREAU “CHECKMATE” TECHNIQUE

Here’s one example: A charge-off reported to all three credit bureaus. One bureau
reports the DOLA as February, 2000. The second reports it at March, 2000. The third,
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February, 1996. There’s a 4 year difference and naturally you want the oldest DOLA to be
correct. In this case two credit bureaus probably re-aged the account because reverse re-
aging is extremely rare. First contact the creditor and ask them to document the DOLA. If
the DOLA turns out to be February, 1996, then dispute the two newer DOLAs. “I dispute
[name of company], account number [xxx]. The date of last activity is incorrect. Delete
this item.” Let’s say both bureaus verify the account as accurate. Sometimes all they do is
an internal verification and they don’t even contact the creditor. If you have documentation
from the creditor, you can redispute those same items with a copy of creditor documenta-
tion showing the DOLA. If the bureaus don’t delete the re-aged accounts, you could sue
them both! Again, it goes back to leverage...

7.) DATE UPDATED OR VERIFIED (DU) DISCREPANCIES

Whenever an item comes back verified, don’t always believe it. Credit bureau employ-
ees are under tremendous pressure to finish disputes quickly. All three credit bureaus have
a different name for this listing. Experian calls it the “Date Verified.” Equifax calls it the
“Item as of Date Reported.” TransUnion calls it the “Date Updated.” Since they all refer
to when the account was updated we’ll call them the date updated, or DU. Whenever an
item comes back verified as accurate, these dates should reflect the month and year
in which the verification was done. Many times, these dates don’t change and they
should, if, in fact the credit bureau properly verified the item.

Example: You dispute an account in July, 2007 - and ask for deletion. The DU is listed
as March, 2006. The bureaus investigation verifies the item as accurate. The DU remains
at March, 2006. Nothing was updated and there was no real investigation on that item.
Follow-up: “On [date] I disputed [account name], [account number]. You verified the item
as accurate. The [whatever the DU is named for the bureau in question] did not change.
No investigation was actually done. Delete the item.” Many items get deleted this way
because you now have proof of an FCRA violation!

BANKRUPTCY ISN’T A SCORE KILLER, HERE’S WHAT IS...

Another common myth many consumers share is that bankruptcy is an absolute score
killer, and if you file you’re doomed for 7 years. Nothing could be further from the truth.
It’s not so much the bankruptcy that lowers the credit score, but the inaccurate
listings of the items ‘included’ in bankruptcy. There’s really no point in disputing the
actual bankruptcy unless you’re able to get all the items included deleted. The credit
bureau can just go down the list and verify the items included and they’ll know it’s your
bankruptcy!

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 If there’s a scoring model for post-bankruptcy, it would be this: after your bankruptcy,
don’t get any late pays and any derogatories of any kind. Most people don’t know this, but
when all of your ‘included’ items get reported accurately it’s really not difficult to reach a
post-bankruptcy FICO score of 700+ within 2 years and get a great interest rate on a car and
home. But, you’ve got to remain as “clean as a whistle.”

CHECK ‘ACCOUNTS INCLUDED’ IN BK

Grab your report and find the bankruptcy listed. After the bankruptcy, accounts that
were included should be labeled as included. If you don’t recall which accounts were
supposed to be included, get a copy of your bankruptcy filing at the courthouse. There
may be a collections or a charge-off that was never reported as included. Very important! If
an account that was included is not listed as such - and it would benefit your score to have
the account included - contact the creditor and the credit bureau and provide documentation
if needed. If a non-included account is reported as “paid as agreed” with no balances or
derogatories, then don’t touch it. That negative (or neutral) account would probably score
worse if included in bankruptcy.

CHECK BALANCES

Furthermore, all accounts included in bankruptcy should be a zero balance or N/A. If

any balance shows, then the account was not updated and it’s lowering your score. Dispute
it. Ask for deletion, because the less items included in bankruptcy, the better. If the credit
bureau updates the item and reports it correctly, then fine.

DATE OF LAST ACTIVITY (DOLA)

The date of last activity or DOLA is one of the most important elements of any deroga-
tory listing. That date determines when the seven-year period ends and the listing becomes
obsolete. Of course, when the listing becomes obsolete, the credit bureaus must delete it.
Equally as important is the newer the account, the more damage it does to your score. If the
DOLA is changed illegally, this is known as “re-aging” an account and it happens all the
time. The DOLA should be no later than the filing date. If the DOLA is after the filing date,
then ask for deletion.

PUT THE BURDEN OF PROOF ON THE CREDIT BUREAU

Here’s an example of how to place the burden of proof on the credit bureau: “I was
declined for a mortgage due to my low FICO score and I need to buy a home [or whatever,
be honest]. I filed for bankruptcy on [month/year] and you continue to report outstanding
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balances and delinquencies for the accounts that were discharged. Please correct your
reporting and delete all balances and verify that all discharged accounts are aged accurately,
with no late payments after the filing date.”

DISPUTING ITEMS INCLUDED IN BK AS ‘NOT MINE’

This is one of the worst things consumers can do, unless the bankruptcy does not
belong to you, or the discharged account is sold and the creditors name changes. First, if
the BK is yours, saying it’s not is a lie. It’s possible that an accurate ‘included’ item in
bankruptcy will get re-aged, show a balance or just not report any longer as discharged. If
you’ve said the item was “not yours” in the past, the credit bureau could use that against
you later, especially in court. Plus, verifying that the account is yours is extremely
easy. Verifying specific facts (i.e. balance, dates and account type) are not as simple.
This causes the creditor to have to work, and if they decide not to respond to the credit
bureaus’ investigation, the item gets deleted. If erroneous information is verified, you can
legitimately follow-up with more disputes.

ATTORNEY’S $1,500 SECRET TO REMOVING PUBLIC RECORDS

Credit bureaus verify public records through third-party database companies, not through
the courthouse where the document is filed. These companies compile the information as
public record and sell it. We have yet to see any of the credit bureaus reveal the names and
addresses of these third-party companies. If they did these companies would get flooded
with disputes, complaints, lawsuits, etc. Instead the credit bureaus always list the court-
house as the furnisher, which is impossible.

So, first dispute the listing (look for incorrect reporting). If it gets deleted, then you’re
done. If it gets verified within 30 days, then mail a follow-up letter asking for the method of
verification. The credit bureaus must respond to this request within 15 days by pro-
viding the name of the furnisher and their contact information. You can then mail
another follow-up such as, “I called my courthouse and they informed me they don’t fur-
nish records to credit bureaus. You had 15 days to provide me the furnishers contact
information. You failed to do so. You have broken the law. Delete the item immediately.” If
they don’t respond within the 15 day time limit - or claim they’re not required to - they have
violated the FCRA a second time. More potential leverage!

DEALING WITH JUDGMENTS & TAX LIENS

Judgments are most often the result of unsecured credit card debt. Sometimes the
judgment is from the original creditor, but more often the creditor sells or transfers the debt
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to a collection agency or attorney debt collector. If you attempt to dispute judgments -
or liens - off your credit report, try and do it factually. Check for incorrect amounts,
dates, etc. Try and drum up a few FCRA violations against the credit bureaus to use as
leverage if the judgment comes back verified. You can also ask for the method of verifica-
tion as described earlier with bankruptcies and use that technique.

If that doesn’t work, you can negotiate a settlement, especially as they get older. After
all, what’s the likelihood of collecting on a judgment? Extremely low. However, if the
judgment holder has reason to believe you’re seeking a home loan, they’ll be much less
likely to settle. Review your state’s statute of limitations (SOL) for judgment collec-
tion. If the SOL has expired and can’t be renewed, settlement arrangements may be easier
because the judgment holder may be barred from further legal action.

As for tax liens, the likelihood of collection is extremely high! If you own a home, they’ll
eventually get a piece of it. Then they’ll find out where you work and garnish your wages.
When they find out where you bank, they’ll levy your account. Keep in mind the IRS and
state tax authorities will work with you to setup a payment plan. The worst thing to do is not
communicate and think the problem will just go away. It won’t!

FINDING FACTUAL ERRORS IN CHARGE-OFFS

For best results, again... Make your dispute factual. Check the balance. Sometimes you
will need to write the original creditor for an account statement to see if the balance is
correct. If the account has been sold or transferred, the past-due amount should be
zero. If this is the case, you’ll want to ask for deletion first (incorrect balance). If the
account gets corrected then try and identify other incorrect reporting.

Look for incorrect late-pays after the date of charge-off. If the dates are not listed,
call the credit bureau and ask them. You can even do a phone dispute right on the spot and
ask for deletion. Look for undated late-pays as, they can also be sufficient grounds for the
deletion.

And last but not least, look at the date of last activity or DOLA. It’s very important
that the account has not been re-aged! The more recent the charge-off appears, the more it
will lower your score and the longer it will stay on your report.

HOW TO DETERMINE IF ACCOUNTS ARE AGED CORRECTLY

The FCRA allows creditors to charge-off an account 180 days after the date you were
first permanently delinquent (a.k.a the date of last activity or DOLA). Partial payments do
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not count, as the account is still delinquent. At that point the “aging process” begins. Once
the account has matured for 7 years, it becomes obsolete and should automatically fall off
your report.

However, some accounts are re-aged, meaning the date you were first permanently delin-
quent or DOLA is pushed forward. Again, this increases the time it takes for the account to
fall off your report. It also makes the account look newer, which lowers your score even
more. If the credit bureau verifies a re-aged DOLA as accurate, both the credit bureau and
the creditor have violated the FCRA.

Here’s what the Federal Trade Commission has to say on the subject: “If you
report information about a delinquent account that's placed for collection, charged to profit
or loss, or subject to any similar action, you must, within 90 days after you report the
information, notify the CRA [credit reporting agency] of the month and the year of the
commencement of the delinquency that immediately preceded your action. This will ensure
that CRAs use the correct date when computing how long derogatory information can be
kept in a consumer's file.”

Example 1: A consumer becomes delinquent on March 15, 1998. The creditor places the
account for collection on October 1, 1998. In this case, the delinquency began on March
15, 1998. The date that the creditor places the account for collection has no significance for
calculating how long the account can stay on the consumer's credit report. In this case, the
date that must be reported to CRAs within 90 days after you first report the collection action
is March 1998.

Example 2: A consumer falls behind on monthly payments in January 1998, brings the
account current in June 1998 [5 months later], pays on time and in full every month through
October 1998, and thereafter makes no payments. The creditor charges off the account in
December 1999. In this case, the most recent delinquency began when the consumer failed
to make the payment due in November 1998. The earlier delinquency is irrelevant. The
creditor must report the November 1998 date within 90 days of reporting the charge-off.

Example 3: A consumer's account becomes delinquent on December 15, 1997. The ac-
count is first placed for collection on April 1, 1998. Collection is not successful. The
merchant places the account with a second collection agency on June 1, 2003. The date of
the delinquency for reporting purposes is "December 1997." Repeatedly placing an account
for collection does not change the date that the delinquency began.

Example 4: A consumer's credit account becomes delinquent on April 15, 1998. The
consumer makes partial payments for the next five months but never brings the account
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current. The merchant places the account for collection in May of 1999. Since the account
was never brought current during the period that partial payments were made, the delin-
quency that immediately preceded the collection commenced in April 1998 when the con-
sumer first became delinquent.

These examples also apply to items included in bankruptcy, whereby the date of perma-
nent delinquency is not the date of discharge, but usually many months prior. Sometimes
even years. Check the dates! Very important. Derogatory accounts must be reported
according to the date of permanent delinquency or DOLA and not according to the date the
account was sold, transferred or discharged. If the account charges-off, settling or paying
the account afterwards should not change the DOLA.

HOW DO I DETERMINE THE DOLA?

With Equifax it’s easy. They list it as the Date of Last Activity. However, Experian and
TransUnion do not provide DOLAs in their consumer reports. Think about that. Two out
of three credit bureaus do not provide you with one of the most important dates to the
scoring of your credit file! There are two ways to estimate them. Let’s say you have an
Experian account listed as a “Charge off as of Jan 1999.” If you count back 6 months you
can get an approximate DOLA. In this case it would be June or July of 1998. For Tran-
sUnion look for the “estimated date this item will be removed” and count back 7 years.

There are also two other ways to get the DOLA. The most accurate way is to
contact the original creditor. Get the DOLA in writing, if possible! Next, contact the credit
bureau and ask them for the DOLA. The creditor is required to report it to the credit bureau,
and the bureau is required to keep complete and accurate records. If the bureau won’t give
you the DOLA, write to them and demand it. Re-aging is a very serious issue and when you
have documentation in hand and an inaccurate DOLA is verified - now you have some
leverage!

THE ONE EXCEPTION TO THE DOLA

You’re not going to believe this. There’s one exception here and that’s with collections.
Fair Isaac rates collections by the “date assigned” or “date opened” and not the DOLA.
So, you can have a 6 1/2 year old collection “reassigned” to a different collector. Now the
clock on that account has refreshed! This is incredibly damaging to your credit score.
That’s why if you get a collection notice you should always respond immediately before
they report the account to the bureaus. You can either dispute the account (if it’s not yours)
or use the ‘KO’ method described later in this course.

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 HANDLING COLLECTION AGENCIES

With derogatory collections always go for deletion. Collection agencies are subject to
the Fair Debt Collections Practices Act. Under the FDCPA you can dispute the validity of a
debt (or a portion thereof) and/or request validation. If the account is not yours, simply
dispute it. “I dispute this account. It’s not mine. Please update your records.” If it’s been
reported to the credit bureaus, ask for deletion. If you don’t want them to call you, then tell
them so. There’s no reason to ask for validation.

If the account is yours, there’s also no reason to ask for validation. If I say the sky
is blue and you say the sky is black, now there’s a controversy. What color is the sky? If I
say you owe me money, and you ask for validation - again, that creates a controversy. Can
the creditor verify the information? In law, that’s what’s called a traverse. If I say you owe
me money you should say, “Who are you?” Asking for validation implies the collector has
the legal right to collect the debt. That can be used against you later in a court of law if
you’re sued. If you want some leverage there are plenty of FDCPA violations to go around!

Here are some examples: Threats to call you everyday until the debt is paid or
contact your family, neighbors and employer about the debt. Threats to have you
imprisoned or criminally charged. If you’re behind on a car payment, the threat to report a
financed vehicle as “stolen” or seize the car or other property where such actions are limited
by state law. Another common threat is that the debt collector will “turn the account over to
our legal department” when the collector has no such department. And since most debt
collectors are not licensed to practice law, they cannot legally recommend litigation.
Other commons violations include mailing correspondence that looks like it’s from an attor-
ney or a court of law - when it’s not - and calling before 8 am or after 9 pm, or calling
repeatedly between those hours to annoy you.

THE DEBT COLLECTOR ‘KO’ METHOD!

Since collection agencies are a real big problem these days, we’ve decided to release this
first-time published technique. The whole point of the validation process is to get all of the
collection agencies to go away. This, of course, doesn’t always happen. Then you’re often
stuck playing letter ping-pong until one of you gives up. That’s why the ‘KO’ method
usually makes more sense. First you don’t traverse and get into any arguments about what
sufficient validation is, who did the validation, etc. It’s simple...

Tell the collection agency that you don’t want their business. A collection notice is
an invitation. Some stranger comes to your door and says, “I have been hired by Jim next
door to collect the $10 you owe him.” And you say, “That’s great but I don’t want to do
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business with you. If you want to force me to do business with you under threat of harm
(negative reporting to the credit bureaus), that’s attempted extortion. I will treat it as such if
you don’t stop coming to my door.” And, negative reporting to the credit bureaus is a form
of collection activity.

The most common myth about collection agencies is they have the legal “right” to
collect a debt. Baloney. Are you aware of any private company who has the right to
force you to do business with them? And that if you don’t accept their invitation they can
damage you financially? The only way anybody can force you to do anything is if there’s a
law or statute that gives them the authority or if there’s a written agreement between the
parties. The former doesn’t exist and the latter exists on rare occasion. That’s why they
use threats and intimidation. They have to!

Example: I’m speeding down the freeway and the police turn their lights on. If I don’t
stop, what will happen? The police will force me to stop. Why? Laws and statutes. Are
debt collectors “debt” police? Of course not. What written agreement, law or statute
gives them the authority to force anyone to do anything? The only exception is if the
debt collector is specifically named in the contract you signed with the creditor (and they
can produce a copy of the original contract), which is rare. You’ll typically see that situation
in the close-ended financing of furniture, high-ticket appliances, business equipment, etc.

Collection agencies are private businesses who rely heavily on threats and intimidation
(a.k.a coercion). They also rely heavily on reporting derogatories to the credit bureaus.
Bottom line: “Show me evidence we have a written relationship that obligates me to do
business with you. If you can’t, get off my credit report and don’t contact me again.” It’s
really that simple.

ATTORNEY DEBT COLLECTORS

Attorney debt collectors can be much more aggressive when it comes to lawsuits than
ordinary collection agencies. Also known as “junk debt buyers” or JDBs, they typically
purchase charge-off debt for less than 10 cents on the dollar. The business is so lucrative,
the industry is absolutely exploding with attorneys. These lawyers can afford to be very
sloppy because they are suing consumers who rarely know the law (and rarely even show up
in court for that matter). JDBs enjoy collecting old charged-off credit card debt because
interest has accrued over the years, making the amount they can claim as owed enormous.
The older the debt, the easier it is to illegally inflate the amount owed as well.

Don’t ignore them, especially if you own property. Treat them the same as you
would a non-attorney debt collector. If the account is not yours, dispute it as such. “Not
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my account. Please update your records and do not call me.” If it’s your account, you can
treat things the same way you would with a collection agency. “I don’t know who you are.
I am not interested in doing business with you. Unless you can show me a written relation-
ship between us, cease and desist all collection action.” JDB’s are also subject to the
FDCPA, so try and get leverage on them through some violations. If they sue you now may
have a counterclaim you can use against them. In addition...

THE “SOL” TECHNIQUE TO PREVENTING A LAWSUIT

Check your states statute of limitations (SOL) on written contracts because if it’s expired
the debt collector can’t pursue legal action against you as long as you raise the SOL as a
defense. One ambiguity with SOLs is from what date does the time period start?
From the date of last activity or DOLA? From the date the debt was sold or transferred?
Generally, the clock starts ticking from the date you made your last payment to the creditor.
If you find the SOL has expired, notify the JDB in writing to try and prevent a lawsuit. We
have provided a sample letter on the pages to follow.

A QUICK NOTE ON THE ‘VALIDATION’ TECHNIQUE

Sometimes debt collectors ignore the ‘KO’ method, most likely because they just don’t
get the concept or don’t think you are capable of suing them. In some instances where the
‘KO’ method could be (or has been) ignored, try this: Contact the creditor and see if they
have any record of any past due accounts in your name. If they don’t, tell the debt collector
that you have contacted the creditor and they can’t validate the account. Then, ask the debt
collector to validate the account or cease collection activity.

I HAVE BEEN SERVED WITH A SUMMONS, WHAT DO I DO?

Don’t ignore the summons. A court complaint is an act of war. When someone declares
war on you and your property, don’t you think you should defend yourself? You really
only have two options. Fight or surrender. Most just settle, and that’s fine. Keep in
mind judgments are hard to collect, so if you’re going to settle out of court shoot for 20 to
25 cents on the dollar. For you fighters out there, check your state laws. Has the collection
of the debt expired under your state’s SOL laws? If so, you can file an answer and motion
to dismiss on those grounds.
You’ve heard the saying, “The best defense is a good offense.” A good offense in a
courtroom is a counterclaim. This is where you sue them back. But you must have
grounds to countersue. Has the debt collector violated any state laws that govern the
collection of debts? Were you served properly? If you need clarification on these issues,
please contact a licensed attorney. For obvious reasons we cannot explore this topic in
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great depth here.
REPOSSESSIONS

A repossession occurs when you purchase a car, finance a portion of it, but don’t finish
paying off the loan. The creditor then sells the car, but if the amount brought at sale does
not cover what you owed on your loan there’s a “deficiency”. If you haven’t been sued,
and you just want the item removed, check the item for factual discrepancies or errors (as
mentioned before) and dispute them with the credit bureaus. Remember, only dispute one
error per item at a time. If you get correction on the first error, you still have a chance of
getting deletion on the second.

If you are being sued, you must consult an attorney to determine what defenses you may
have and the likelihood of their success in light of your circumstances. Keep in mind,
defenses that are good against the dealer are also good against the company which pur-
chased your contract.

UNAUTHORIZED INQUIRIES

As you may already know, there are two types of inquiries: soft and hard. Soft inquiries
don’t affect your credit score. The bureaus will even tell you that right on your credit
report. Hard inquiries can remain on your credit report for up to 2 years, but Fair
Isaac only takes into account hard inquiries during the last 12 months. Hard inquiries
typically occur when you apply for a “firm offer” of credit or insurance.

HARD INQUIRIES...

First, let’s talk about debt collectors. They routinely place hard inquires on consumer
credit reports. Credit bureaus are responsible for this as they set up the collectors sub-
scriber account to inflict maximum damages. Remember, the credit system is not de-
signed to benefit the public, it’s designed to keep a certain percentage of the popula-
tion in “sub-prime” status. That’s a bold statement, but why else would collection ac-
counts be scored from the date “assigned” and not the date of last activity? Collection
accounts can be passed around and reassigned for decades! Why else are debt collectors
allowed to place hard inquiries on your credit when they don’t issue credit or insurance? If
this isn’t a system where the odds are stacked against most consumers - I don’t know what
is.

A collection agency does not offer credit or insurance; therefore their inquiries should be
scored as soft and not affect your credit score. It should be no surprise that the FCRA
actually allows collectors to place hard inquiries on your credit. It’s bad enough
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having a new collections reported, but a hard inquiry can lower your score up to 35 points.
And, if you get an old collections deleted but a new one remains on your file, your score
may not change at all. That’s why it’s best to target the most score damaging items first.
You can then come back later and pick at the small stuff.

REVIEWING YOUR HARD INQUIRIES...

If you don’t recognize an inquiry, you may be the victim of identity theft. If you see a
collection inquiry, they’re checking you out. If an inquiry should be an account review
but gets misclassified as a hard inquiry, then you may be able to fix it. If an inquiry was done
without a permissible purpose you can ask for and collect damages of up to $1,000 (note:
$2,500 in California). If you think an inquiry is unauthorized contact the creditor or collector
and ask them for their permissible purpose. “As per [credit bureau], I am not aware of
applying for credit with your company on [date]. What was your permissible purpose?”
Many times they will write back and put their foot in their mouth by admitting they didn’t
have one - or claiming they did when they really didn’t.

Mortgage broker inquiries are common, even when the broker did not process your
application! They must send you an approval/denial letter and state that you did not put the
application on hold. If not, they had no permissible purpose. Write them and ask for
damages of $1,000 (or $2,500 in California). You can also threaten to file a complaint with
the state agency they got their license from. Keep in mind, each inquiry counts (all three or
six if you’re a couple) so you could be looking at substantial damages. That means it will be
much easier to settle out of court if the situation ever makes it there.

LATE-PAYS

The older the late-pay, the less damaging it is to your score. So target your newest
late-pays! The most common way to get them deleted is to call the creditor and tell them
there was trouble with your mail delivery. Some creditors will forgive one late pay, no
matter what the reason, just as a matter of good business. Mortgage late-pays are a bit more
difficult to deal with, probably because banks want to make it harder for consumers to
refinance with another lender.

If you have multiple late-pays and the account is maxed (and has not charged-off) you
may want to consider using that as a negotiation tool. In other words, if you bring the
account current you require the creditor to delete the late-pays. Otherwise what incentive do
you have except charge-off? At that point the charge-off is not going to do much more
damage. But, if you can save the account and have it benefit your score, by all means give it
a shot.
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 ASK FOR WHAT YOU WANT, BUT NOT TOO MUCH!

If the account has been re-aged, or has already matured for 7 years and is obsolete, or if
there are any other factual reasons why the account should be deleted - dispute one factual
reason at a time. If you get correction you can dispute again for another reason and get
deletion. If you throw all the reasons up on the board and get correction, it’s over. Keep it
simple and don’t confuse the credit bureau. If you just want correction then ask for it. If
you want deletion, demand it nicely!

REVIEWING THE INVESTIGATION RESULTS

Often the credit bureaus will provide incorrect investigation results. “Account deleted”
but it’s still on the new credit report they sent you. “New Information Provided” but
nothing about the item has changed. Make sure you carefully review the results of the
update report and if you discover incorrect results, ask for the corrections or deletions you
originally wanted. Include a copy of their results and redispute. Many times you’ll get what
you ask for!

It’s also important to keep your credit reports and creditor documentation for at
least 7 years. If any negative listing were to reappear or get re-aged you can refer back to
past documentation. Your investigation results are your best evidence of your disputes and
may be needed at a later date if you need to dispute or sue.

INCORRECT NAMES, ALIASES, ADDRESSES, SSNs, ETC.

Some personal information may be accounted for in Fair Isaacs scoring model. No-
body knows for sure, but we feel the date your addresses are reported is critical. We’ve
received feedback from numerous clients that when they move, all of those pre-approved
credit card offers that used to come in the mail stop for bout 6 to 12 months. A new address
could signal a medical illness, divorce, change of employment or some other potential for
instability which could make you more of a credit risk.

If your address changes every 6 months, obviously you don’t look as stable as someone
who has moved twice in 16 years. It is for this reason you should have as few ad-
dresses as possible. It’s best to have any addresses that are in between your current
address and your oldest address deleted. The best way to do this is to write the bureaus
and request deletion. If they tell you to contact the company who furnished the address
(FCRA violation), tell them that’s their job. In addition, Private Mail Boxes can show as a
commercial address, so avoid using these types of services.

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 ARIZONA CREDIT GURU’S $500 “INSIDER METHOD”
TO CORRECTING A MERGED CREDIT FILE!

First, identify if your credit file has been merged with someone else. The best way to
identify is call the credit bureau and ask if there are any other sources of information linked
to your account. It could be a spouse, ex-spouse, relative or a complete stranger. If so,
request the files be separated. Their computers contain a field called “Additional Sources
of Information.” That field should be blank. Once those additional sources of information
are deleted, everything associated with that source should drop off your report. If the credit
bureau is not helpful then have a mortgage lender pull a tri-merge credit report. That will
usually list the additional source of information. You can then you can dispute it with the
credit bureaus.

HOW MANY NEGATIVE ITEMS SHOULD I DISPUTE?

If you are disputing the items factually, there is no limit. When I say factually, I am
talking about incorrectly reported accounts (i.e. balance, DOLA, etc.) There’s nothing like
a factual dispute and it’s so easy to find incorrect reporting! Remember, if a derogatory
item has several errors, only point out one at a time. This way, if the bureau corrects the
error you can dispute again and have a second chance at deletion.

HOW SHOULD I SEND MY DISPUTES?

To the credit bureaus? If you want leverage you must document your results. That
means knowing when your letter was delivered. Keep it simple and use U.S. Postal Ser-
vice Priority Mail, Confirmation of Delivery. Never ask for a signature or your mail will
probably get refused (and you’ll be out the postage). It’s the credit bureaus way of cutting
down on disputes, since most credit courses recommend Certified Mail, Return Receipt
Requested. To the debt collectors and JDB’: Priority Mail, Signature Confirmation. To old
creditors? Call them or just use First Class mail. :)

HOW CAN 2 CREDIT BUREAUS VERIFY, AND 1 BUREAU CORRECT?

Their verification procedures are not designed to assure maximum possible accuracy.
Just read the startling senate testimony later in this course. The credit reporting system is
designed to maximize creditor (and credit bureau) profits. The credit bureaus don’t
make more money by selling more accurate information. They make less! We don’t need to
pass judgment unless they break the law and violate our rights. It’s just important to under-
stand that they are profit-motivated like any other corporation. A lack of regulatory enforce-
ment is one of the main reasons they get away with being sloppy.
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 WHEN CREDITORS, DEBT COLLECTORS, AND THE CREDIT
BUREAUS REFUSE TO CORRECT INACCURATE REPORTING

If your dispute was factual, documented, and a violation of the law has occurred - now
you have leverage against the creditor, debt collector and/or credit bureau. I’m not about to
insult your intelligence by telling you to write complaint letters to the Federal Trade Commis-
sion (FTC) or Attorney General. Though widely promoted in other courses and on the
internet, it’s a complete waste of time (you know this if you’ve ever tried it). Your com-
plaints will fall on deaf ears! The “regulators” already know exactly what’s going on. The
fact that massive regulatory enforcement has not happened against the credit bureaus should
be proof enough the system serves corporate interests first. To their credit, the FTC does
go after abusive debt collectors on occasion. Bravo!

LEGAL ASSISTANCE FOR “PENNIES ON THE DOLLAR!”

The best place to get free or deeply discounted “triple-A” rated legal assistance is by
becoming a member of a legal benefits plan! You’ll enjoy access to thousands of attorneys
nationwide who provide FREE consultations, FREE letter writing, FREE phone calls on
your behalf, FREE will preparation, FREE contract and document review and more peace
of mind! A credit card, debit card or active checking account is required to enroll. Con-
sumers can enroll with no long-term commitment for about $26 a month, depending
on your state of residence. To enroll go to http://www.pre-paidlegal.com!

WHAT TO DO IF YOU’RE THE VICTIM OF IDENTITY THEFT...

This really depends on your personal situation and how quickly you need to clean up
your credit report. The first thing to consider is, was the theft in the past, or is it
happening now? Either way, you’re going to need to contact both the creditor and the
credit bureaus. If it’s an old account, I would write the creditor, and tell them, “I have no
record we have ever done business before, so I am disputing account number [xxx]. Please
deleted this account from my credit report. Thank you.”

If the theft is current, as in you see new accounts that have been recently opened or utility
or rental inquiries... Act fast! You may want to consider filing fraud alerts on all three
of your reports. Next, submit an ID Theft Affidavit (included later in this section) to the
creditor and credit bureaus along with a written dispute. “Account number [xxx] is the
result of identity theft. This is not my account. Please delete it. I have attached a notarized
ID Theft Affidavit.” Some creditors and credit bureaus will ask for a police report, but no
creditor or credit bureau can force you to get one since no law requires it. And, in most

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cases you don’t even know who stole your identity, so what can the police do? If the fraud
is causing you economic hardship, you may want to also consider applying for a second
SSN.

BONUS SECTION
Samples of incorrect reporting!

This account was transferred to another lender and the balance is $0. Good. Here is an example of a
delinquency of $0. How can anyone be delinquent for $0? Notice the date closed. The delinquency of
$0 is 5 years after the closed date! Notice the “date verified.” TransUnion verified this account as
accurate on 10/2004, and that’s just when the delinquency for $0 started. Amazing. The date closed
is 09/1999 (which is not the DOLA). Go back 6 months and that brings us to a possible DOLA of 03/
1999. Add 7 years to that and you have 03/2006. But the estimated date the item will be removed is
08/2006. There may be a little re-aging going on with this account. There are FOUR potential errors
here: 1) delinquency of $0, 2) delinquency after closed date, 3) TransUnion verified the item at the
same time the errors were reported, and 4) possible re-aging (check with the original creditor). Always
hit them one at a time and check the account across all three bureaus for inconsistencies!

First, notice the balance, and then the high balance. How can the high balance be lower than the
balance? I understand the past-due balance matches the balance but if this debt collector owns the
account, the high balance should match. It’s an “open account.” Whose account is it? The original
creditor has charged-off the account. If we assume the account belongs to the debt collector, that
would further substantiate the high balance should match the balance. If we assume the account
reflects the creditor, it should be a “closed account.” The date opened (when the account went to
collections) is 01/2002. That’s 9 years after the estimated date the item will be removed! There are 4
potential errors here: 1) incorrect balance, balance is higher than the high balance, 2) incorrect high
balance, high balance is lower than the balance, 3) open account inaccurate, and 4) possible re-aging
(check with the original creditor). Again, hit them one at a time. See how easy it can be?

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 WHY 94% OF ALL CREDIT BUREAU DISPUTES ARE
“RED-FLAGGED” AND THE ONE SECRET
YOU CAN USE TO AVOID FAILURE!

Picture in your mind for a moment... You own a credit reporting agency, and every
day you literally receive “truck loads” of mail. Thousands of envelopes which must
be examined, opened, recorded and processed; this in turn requiring thousands of
computer entries and hundreds of employees. There’s just one problem. You, as the
owner of a credit bureau, don’t make any money dealing with all this mail!

So, you develop some rules to make your business more efficient. First, all mail
that requires a signature gets refused. Second, all letters that appear to come from a
credit repair organization - you toss in the garbage! Third, all letters that look confusing
you return back to the consumer as frivolous. Then you put the remaining dispute
letters into two piles. Disputes that look like they’ve been copied out of a credit repair
book are put into the “boiler plate” pile. And disputes that look to be authentically
written by the consumer get put into the “original” pile.

Now, the first pile containing “boiler plate disputes” gets assigned to a depart-
ment, whereby the CRA employee simply translates the dispute into a two-digit code.
The job of most credit bureau “investigators” (despite their title) is solely data
entry! That’s it. And as an experienced credit bureau owner, you understand that 90%
of consumers who use a “boiler-plate dispute” simply give up after the items are verified
as accurate. So why take these disputes seriously at all?

The second pile of disputes, which appear to be authentically written by the con-
sumer and appear to be factual - you take more seriously. Not a bunch of “ranting and
raving” about laws, procedures, court rulings, and the like. Just short, simple and
concise.

The consumer who writes his or her own “original” dispute letter is much more likely
to take the process seriously. And they’re much more likely to send follow-up letters
and sue for FCRA violations. That spells more trouble!

Were you aware that dispute investigators at the big 3 credit bureaus work under a
quota system whereby each “investigator” is expected to process all the disputes of an
individual consumer in less than a few minutes? To get the best results possible,
make your dispute letters look and sound original.

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 THE BEST TIME OF YEAR FOR CONSUMERS
TO DISPUTE THE CREDIT BUREAUS!

The best time to make dispute requests is during the busiest time of the year -
after Thanksgiving and before New Year’s Day. During these busy times there’s a
better chance that the credit bureaus fall short on resources to comply with the time
requirements of a consumers request and will either be forced to delete or correct the
contested items! As per the FCRA, credit bureaus have 30 days from the date of receipt
to complete their investigation. If they don’t complete their investigation in a timely
manner make sure you follow-up and tell them!

HANDLING THE REINSERTION OF PREVIOUSLY DELETED ITEMS

If an item that was previously deleted is reinserted back on your credit file, the FCRA
requires the credit bureau notify you not later than 5 days after the date of reinsertion.
That’s the law! Do they notify anyone? I’ve never seen them. Why not dispute the
reinsertion? “On [date] you reinserted the following previously deleted account: [name
of account] - [account number]. You were required to notify me within 5 days of doing
so and you didn’t. Please delete this item.” Notice I didn’t ask for proof of delivery? If
I know they didn’t notify me, why ask for documentation they did?

KEEPING THINGS SIMPLE WITH COLLECTIONS

The internet is plentiful with sample dispute letters, but have you really thought about
the message they’re sending to the creditor, debt collector, or credit bureau? “I do not
owe you anything. In accordance with section 809 provide me validation.” Why ask for
validation if the debt isn’t yours? “Provide me a copy of your bond.” They’re not
required to by law! “Please inform the credit bureau I have disputed this debt.” What
good does that do? If you want deletion, just ask for it. “I dispute account number
[xxx]. It is not my account. Delete it.” That’s it! If it is your account...

Does the debt collector have the legal right to collect it? Probably not. They
have the right to freely think they have the right, but that’s a rebuttable presumption. For
example, “I don’t want your business. Please return your business to whoever asked
you to complete it. Thank you.” You don’t need to get all fancy. You do need to use the
wording that makes the most sense to you. Whatever you do, don’t copy the letters in
this course word for word. Why? They may get flagged as coming from a credit repair
course and considered “frivolous” even though ours are pretty generic. Keep in mind,
this publication is used by thousands of people! All I’m saying is just mix things up a
little to add some flavor. There’s nothing complicated about all of this.
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 THE SIMPLE ROAD WITH THE CREDIT BUREAUS

Credit bureaus are well known for flagging certain catch phrases. “As you know, the
Fair Credit Reporting Act requires you to maintain reasonable procedures...” This phrase
is straight out of a dozen credit courses. Get to the point. If you’ve written a collection
agency and turned down their business, here’s what you can write to the credit bureau:
“Account number [xxx] is disputed.” You can get a little more specific: “This account
was the result of identity theft.” Or, “This account was incorrectly billed to me. See
attached letter from creditor.”

They also don’t need your paralegal services. There’s no point in sending them
copies of the FCRA. You’re not talking to a bunch of attorneys. That’s why in some
cases it’s important to contact the creditor while you’re disputing. If the account is
verified and remains incorrectly reported you can redispute with backup documentation
from the creditor to prove your case. If the bureau refuses to consider the documenta-
tion now you have some leverage. Pay a local attorney a few bucks to write them a letter
stating an FCRA violation has occurred and their cooperation is recommended. You get
the idea.

MAKING CRAZY AND EMPTY THREATS

Imagine all the crazy threats these companies see. “I’m going to report you to the
FTC, Attorney General, etc.” How about the infamous, “I am going to sue you in federal
court.” If you really were prepared and had the intent to sue you would be smart enough
not to give them any warning. Don’t waste your time with nonsense like this. Your
letter will simply get laughed at.

MAKE SURE YOUR DISPUTES MAKE SENSE

Don’t say, “I demand you respond within 30 days and provide me, in writing, copies
of...” And in the last paragraph say, “Cease and desist all communication.” This creditor
or collector is going to shake their head and be very confused. You’ve also lost all of
your leverage because you can’t sue anyone when your letters are confusing.

Be more specific. “Please provide me proof we have a written relationship to do

business for account number [xxx]. If you don’t provide this proof within 30 days I will
assume this matter is settled and thereafter you will cease all collection activity and delete
all derogatory reporting.” There are tons of sample letters in this course so enjoy!

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 SAMPLE LETTERS
For obvious reasons, you don’t want your letter or dispute scribbled on a post-it-note. It needs to be
written on 8 1/2 x 11” paper. On the left, print a heading with your name, address, city, state and zip
code. Below that, list the creditors, debt collectors, or credit bureaus name, address, city, state and
zip code. Below that list the date. If it’s a collection account or letter to a creditor, list the account
number under the date. If it’s a credit bureau, list the “report number.” Here’s an example:

CREDITORS/COLLECTORS CREDIT BUREAUS

(Your Name) (Your Name)

(Address) (Address)
(City, State & Zip) (City, State & Zip)

(Creditor or Collector) (Credit Bureau Name)

(Address) (Address)
(City, State & Zip) (City, State & Zip)

(Month) (Day), 200(X) (Month) (Day), 200(X)

Re: Acct # (XXX) Re: Report # (XXX)

To Whom It May Concern, To Whom It May Concern,

TEXT TEXT

Sincerely, Sincerely,

(Your Name) (Your Name), (SSN), (DOB)

(Previous Address)

LETTERS TO THE CREDIT BUREAUS

NOTES: Remember to include at copy of your drivers license, or state issued ID, or U.S. passport,
and a copy of your SSN card, or paystub, or W-2 or a recent utility bill. Just 2 forms of ID are required.
Make lots of copies of them! Also, very important: Everything in ‘[‘ is for you to fill in and everything in
‘(‘ is commentary and is not to be included in your text. Keep in mind, if we were to include every
conceivable letter that could be written this course would be 500 pages. These examples are here to
teach you how to create your own letters.

FREE CREDIT REPORT GUIDELINES (FROM EACH BUREAU INDIVIDUALLY)

TEXT: “I am writing for a free copy of my credit report. Please mail me your current guidelines on how
to qualify for a free report and if I qualify I will request one. Thank you.” (Notice no laws quoted here.)

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 PURCHASE CREDIT REPORT FROM ANY BUREAU

TEXT: “I am writing to purchase my credit report. Please find enclosed $__. I have enclosed copies of
(whatever documents you’ve copied to verify your identity). Thank you.”

FRAUD ALERT & FREE REPORT (FROM EACH BUREAU INDIVIDUALLY)

TEXT: “I have called your automated system and have placed a temporary fraud alert on my file.
Please send me a free copy of my credit report. If any creditor needs to contact me they can call
[telephone number]. (Notice no laws quoted here.)

FRAUD ALERT REMOVAL LETTER

TEXT: “I am writing to remove the fraud alert from my credit file. I have enclosed copies of the
documents you need to verify my identity. Thank you.” (Notice no laws are quoted here.)

NOTICE OF EXTENDED FRAUD ALERT

TEXT: “I am writing to place an extended 7-year fraud alert on my credit file. Enclosed are copies of
documents which will verify my identity. Please call me at [telephone number] if you have any further
questions. Thank you.” (Notice no laws are quoted here.)

INCOMPLETE REPORTING OF CREDIT ITEM - MISC.

TEXT: “Please find attached a copy of my credit report. I have circled the [whatever item is missing].
This listing is incomplete. Please delete the entire item.” (Notice we don’t ask for correction here but
you could if it were a positive item.)

TEXT: “I am writing to dispute the following account: [name of account], account number [xxx]. This
listing is missing the [whatever item is missing]. Please delete the item.”

TEXT: “You are reporting an incomplete item. It’s missing [whatever item is missing]. The account
name is [name of account], account number [xxx]. Please delete it.”

TEXT: “On [date] you updated a listing with new information. However, according to the documenta-
tion I have attached from the creditor the [whatever was missing and updated] is incorrect. This
means you didn’t contact the creditor. Delete this item immediately.”

TEXT: “On [date] you updated a listing with new information. However, the listing is still incomplete. I
am asking for immediate deletion.” (Notice we don’t ask them to update the listing.)

INCORRECT BALANCES - MISC.

TEXT: “I dispute [name of account], account number [xxx]. The balance is incorrect. Please delete.”
(Notice we don’t tell them the account was sold or transferred and that the balance should be zero.)

TEXT: “I dispute [name of account], account number [xxx]. The balance is incorrect. It should be
reported as $0. This account has been paid. Please correct.” (For a positive account only!)

TEXT: “I am writing to dispute an account that’s showing a balance that’s higher than the high balance.
Enclosed is a copy of the report with the item circled. Please delete it.”
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 INCORRECT CREDIT LIMIT DISPUTE

TEXT: “The credit limit on my [account name] card, account number [xxx] is inaccurate. A credit limit
is not what I’ve charged on a card. That would be my high balance. Please report the credit limit
accurately as $[xxx]. Enclosed is a copy of my last billing statement to verify my claim. Thank you.”
(Notice we don’t ask for verification from the creditor since the creditor will just verify the high balance.)

CREDIT LIMIT ON COLLECTIONS DISPUTE

TEXT: “I dispute [name of account], account number [xxx]. This listing is showing a credit limit of
$[xxx]. How can a collections have a credit limit? I demand deletion.” (As you can see this is not rocket
science.)

TEXT: “I dispute [name of account], account number [xxx] because of the following fact: A collection
account cannot have a “credit limit.” Your procedures have allowed this since [date reported or opened]
and this has been highly damaging to my credit score. Please delete the item.” (Notice the mention of
financial damages. It never hurts to ask for a little sympathy.)

DELINQUENCY/PAST-DUE AMOUNTS AFTER CLOSED OR CHARGE-OFF

TEXT: “I dispute [name of account], account number [xxx]. This account was closed on [date] how-
ever it’s showing delinquent activity after the closed date. Your procedures have allowed this since
[date closed or charged-off] and this has been highly damaging to me. I want this account deleted.”

UNDATED LATE-PAYS ON DEROGATORY ACCOUNTS

TEXT: “The following listing is incomplete: [name of account] / [account number]. I am disputing this
account due to the fact that it’s listing an undated late pay. Please delete it.” (Or try this next one.)

TEXT: “The following accounts are incomplete: [list the names and account numbers of 2-3 of your
worst undated latepay accounts]. Please provide a complete and itemized listing of the dates for these
accounts. I am having trouble getting them from the original creditor.”

INCORRECT ACCOUNT TYPE

TEXT: “I am writing concerning the following account: [account name] / account number [xxx]. I am
disputing the account type. It’s inaccurate. A charged-off or closed account cannot be an “open
account”. Please delete it.” (Obviously, if the account is not charged-off or closed it is an open account
and the reporting would be correct.)

DATE OF LAST ACTIVITY

TEXT: “Please verify with the creditor the date of last activity for the following account: [account name]
/ [account number]. Thank you.”

DATE UPDATED/VERIFIED (DU) DISCREPANCY

TEXT: “On [date] I disputed [account name], account number [xxx]. You verified the listing as accu-
rate. However, the date verified or date updated did not change. It appears no creditor investigation
was actually done. Delete the item immediately.

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 ITEM NOT INCLUDED IN BANKRUPTCY

TEXT: “Upon reviewing my credit report, the following account is inaccurate: [account name], account
number [xxx]. This account should be included in bankruptcy. Please update your records.” (Note, use
this as a last resort if nothing factual about the item can cause deletion. Always go for deletion before
you ask for a derogatory item to be included in bankruptcy! You may need to contact the creditor and
ask them to update their records as well.)

INCORRECT BALANCE ON AN ITEM INCLUDED IN BANKRUPTCY

TEXT: “The balance for account number [xxx] is inaccurate. Please delete this item.” (Notice we didn’t
mention the item is included in bankruptcy. If that doesn’t get deletion or correction try this...)

TEXT: “The creditor refuses to update the balance for account number [xxx]. It still remains inaccu-
rate. Please update your records to show a zero balance since the account was discharged in bank-
ruptcy. Thank you.”

DATE OF LAST ACTIVITY (DOLA) FOR ITEM INCLUDED IN BANKRUPTCY

TEXT: “I am disputing the date of last activity for account number [xxx]. It has been re-aged. Please
delete this item.” (Notice we did not ask for correction.)

DOLA FOLLOW-UP TO VERIFICATION

TEXT: “On [date] you verified as accurate the date of last activity of account number [xxx]. According
to the creditor the correct date is [month/year]. Please see enclosed supporting documentation from
the creditor. Delete this account immediately to avoid civil liability. Thank you.” (Notice we didn’t ask
for correction. The creditor verified the credit bureau didn’t do a proper investigation. That’s an FCRA
violation, so the only way the bureau can safely escape is to delete the item; theoretically.)

BURDEN OF PROOF ON THE CREDIT BUREAU

TEXT: “I was declined for a mortgage due to my low FICO score and I need to buy a home [or whatever
your situation is, just be honest]. I filed for bankruptcy on [month/year] and you continue to report
outstanding balances and delinquencies for the accounts that were discharged. Please correct your
reporting and delete all balances and verify that all discharged accounts are aged accurately with no
late payments after the filing date. Thank you.”

METHOD OF VERIFICATION - PUBLIC RECORDS

TEXT: “On [date] you verified a public record I had disputed. It was a [type of public record] reported/
filed on [date]. I am now requesting the method of verification, including the name and address of the
furnisher of information.” (Notice no laws or time limits. They know.)

METHOD OF VERIFICATION - FOLLOW-UP

TEXT: “On [date] I requested you send me the name and address of the furnisher of information who
helped you verify that the [type of public record] filed on [date] was accurate. You listed the [court-
house] who does not furnish information to your credit bureau. You have failed to comply with your
procedures. Please delete this item immediately to avoid civil liability.”

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 METHOD OF VERIFICATION - NO RESPONSE

TEXT: “On [date] I requested you send me the name and address of the furnisher of information who
helped you verify that the [type of public record] filed on [date] was accurate. You have not provided me
the contact information you’re required to. Please delete this item immediately to avoid civil liability.”

JUDGMENTS AND TAX LIENS

TEXT: -- Just substitute earlier text and the [account name] with [type of public record] and [date].

COLLECTION AGENCY - CREDIT BUREAU DISPUTE

TEXT: “I dispute collection account number [xxx]. Thank you.” (Whenever you send the ‘KO’ letter to
a collection agency always dispute the collection account with the credit bureaus. You don’t give any
reasons or facts, other than this account is under dispute.)

INVESTIGATION RESULTS DISPUTE

TEXT: “On [date] I mailed a dispute and have received the results of your investigation. Regarding
[account name], account number [xxx] - your results indicate the item was deleted. Upon reviewing my
report the item is still listed. Please delete the item as per your investigation.”

INACCURATE LATE-PAY

TEXT: “You are reporting a late-pay on the following account: [account name], account number [xxx].
This account was late due to an error the company made in mailing the payment coupon book late.
Please delete.” (Notice we’ve included facts. Supporting documentation is also helpful. The goal is to
have the bureau just delete it and not ask the creditor who’s records may still be incorrect.)

LETTERS TO DEBT COLLECTORS

** You may also want to add one of the three cease and desist options on page 73 to your letter.

TEXT: “I don’t want your business. If you feel the need to force me to do business with you then
provide written documentation that makes you entitled to force me to do business with you (i.e. a
written agreement between us). Otherwise, return this account to whoever asked you to invite me to
pay whatever it is you are collecting.” (Notice no mention of any debt, laws, complaints, validation,
etc.)

TEXT: “I must decline your invitation to do business. Your presumption that you have the legal right to
collect anything from me is rebutted. If you feel there is some statute or law that entitles you to force
me to do business with you, then produce it. If you feel there is some written agreement between us
that gives you the authority to force me to do business with you, then produce it. Otherwise, if you
continue collection activity and damage my credit I will consider it attempted extortion and act accord-
ingly.” (Notice how this is right to the point. There’s no need to be wishy-washy.)

TEXT: “We have never done business before. If you attempt to force me to do business with you under
threat of economic harm, that’s considered attempted extortion. If you attempt to force me to do
business with you without any written relationship between us, that’s considered fraud. Otherwise, I
will consider the situation a crime and act accordingly.”

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TEXT: “I am in receipt of your letter stating that I owe you something. Show me your lawful authority to
force me to do business with you, under threat of financial harm. If you are unable to do so within 20
days then cease any derogatory reporting to the credit bureaus. If you continue to collect I will consider
the situation a crime and act accordingly.”

TEXT: “I don’t want your business. Absent lawful authority or a written agreement between us, you
can’t force me to do business with you. Cease and desist. If you injure me in any way in the attempt
to collect monies I will consider it extortion, a criminal offense, and will act accordingly.” (Notice no
specific action is mentioned, leaving the reader to wonder what recourse the writer has or will take.)

** If the account is very old, and the creditor has no record of it, you can do a validation request,
knowing the collector will not be able to verify the account.

SAMPLE VALIDATION EXAMPLE (IF CREDITOR HAS NO DOCUMENTATION)

TEXT: “On [date], I contacted [name of creditor] and was told there is no record of me owing them any
money. Either validate the account you are attempting to collect with current creditor records and
provide me copies of current supporting documentation, or cease collection action on this account and
remove any derogatory reporting to the credit bureaus. I will expect written confirmation of your deci-
sion within 30 days. Thank you.”

STATUTE OF LIMITATIONS EXPIRED - ATTORNEY DEBT COLLECTOR

TEXT: “I am in receipt of a letter from your law firm. Please note the statute of limitations has expired
on the account you are attempting to collect. In addition, I don’t want your business. Cease and desist
all collection activity and remove any inquiries you have placed on my credit report. Thank you.”

LETTERS TO CREDITORS
NOTES: If you can obtain the creditors phone number, always call first. Often times you can get the
information you need over the phone and/or verbally request written documentation to faxed or mailed
to you. If you need to mail in a written request, make sure you verify with the creditor the address where
the documentation you need can be obtained. If you need to pay a processing fee, pay it by money
order only. Otherwise, your checking account information could find itself in the wrong hands.

LETTER TO CREDIT BUREAUS - NOTICE OF FRAUDULENT ACCOUNT

TEXT: “Account number [xxx] is the result of identity theft. This is not my account. Please delete it. I
have attached a notarized ID Theft Affidavit. Thank you.”

REQUEST FOR CREDITOR DOCUMENTATION - MISC.

TEXT: “As per our telephone discussion, I am writing to request a copy of the billing statement which
shows the date I last made the required minimum payment on this account, or the date of last activity.
I have enclosed $__ for the processing fee. Please fax this information to: [fax number]. Thank you.”

TEXT: “I am writing to request a copy of the billing statement which shows the date I last made the

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required minimum payment on this account, or the date of last activity. Please inform me of any
processing fees by replying to this letter and/or faxing the information to: [fax number]. Thank you.”
(Note the use of a fax. Very important if you’re in a hurry. Go to www.efax.com and get a free number.)

UNAUTHORIZED INQUIRY BY CREDITOR

TEXT: “According to [credit bureau], you obtained my credit report on [date]. I am not aware of having
applied for credit or anything else from your company. What was your permissible purpose? If I don’t
hear from you I will assume you had none and request permanent deletion within 30 days.” (Notice the
question and the assumption of non-response.)

UNAUTHORIZED INQUIRY BY DEBT COLLECTOR

TEXT: “On [date] you obtained my credit report from [name of bureau]. I have never done business
with you and we have no written relationship that I am aware of. What was your permissible purpose?
If I don’t hear from you within 30 days I will expect permanent deletion of the inquiry.”

UNAUTHORIZED INQUIRY BY DEBT COLLECTOR AFTER ‘KO’ LETTER

TEXT: “You were notified of my choice not to do business with you on [date]. According to [credit
bureau], you obtained my credit report on [date], or after you received my letter. What was your
permissible purpose? If I don’t hear from you I will assume you had none and will expect permanent
deletion within 30 days.” (This is if a hard inquiry is made after the ‘ko’ letter is delivered.)

FOLLOW-UP GENERIC PERMISSIBLE PURPOSE DEMAND (HARD INQUIRY)

TEXT: “You obtained my credit report from [name of bureau] on [date] and the inquiry was coded as if
I had applied for credit, insurance, housing, etc. You also failed to respond to my request for your
permissible purpose which you received on [date]. I can only assume now that you had no permissible
purpose. As your legal department knows, civil liability in this matter is $1,000 in damages. I am
offering to settle this matter as follows: Permanently delete the inquiry, or overnight me a cashiers
check for $1,000. I will give you 20 days to make a decision.” (Notice there’s no threat to sue. An
implied threat is all you need because it leaves them wondering what your intentions are.)

IDENTITY THEFT LETTERS

NOTES: Never claim you’re the victim of identity theft when you’re not. That’s considered “credit
repair fraud” and could subject you to civil and criminal liability. On the pages to follow is the FTC’s ID
Theft Affidavit.

LETTER TO CREDIT BUREAU OR CREDITOR - FRAUDULENT ACCOUNT

TEXT: “Account number [xxx] is the result of identity theft. This is not my account. Please delete it. I
have attached a notarized ID Theft Affidavit. Thank you.”

LETTER TO CREDIT BUREAU, CREDITOR OR DEBT COLLECTOR

TEXT: “I recently checked my credit reports and have discovered an account that is not mine and is the
result of identity theft. The account is: [name of account], account number [xxx]. Please find attached
a notarized ID Theft Affidavit. I will expect this account to be deleted within 30 days.”

Copyright 2007-2012
Consumer Publishing Group
62 NEXT PAGE

 Instructions for
Completing the ID Theft Affidavit
To make certain that you do not become respon- Complete this affidavit as soon as possible.
sible for any debts incurred by an identity thief, Many creditors ask that you send it within two
you must prove to each of the companies where weeks. Delays on your part could slow the investi-
accounts were opened or used in your name that gation.
you didn’t create the debt. Be as accurate and complete as possible. You
A group of credit grantors, consumer advo- may choose not to provide some of the informa-
cates, and attorneys at the Federal Trade Commis- tion requested. However, incorrect or incomplete
sion (FTC) developed an ID Theft Affidavit to information will slow the process of investigating
make it easier for fraud victims to report informa- your claim and absolving the debt. Print clearly.
tion. While many companies accept this affidavit, When you have finished completing the
others require that you submit more or different affidavit, mail a copy to each creditor, bank, or
forms. Before you send the affidavit, contact each company that provided the thief with the unautho-
company to find out if they accept it. rized credit, goods, or services you describe.
It will be necessary to provide the information Attach a copy of the Fraudulent Account State-
in this affidavit anywhere a new account was ment with information only on accounts opened at
opened in your name. The information will enable the institution to which you are sending the
the companies to investigate the fraud and decide packet, as well as any other supporting documen-
the outcome of your claim. If someone made tation you are able to provide.
unauthorized charges to an existing account, call Send the appropriate documents to each
the company for instructions. company by certified mail, return receipt re-
This affidavit has two parts: quested, so you can prove that it was received.
• Part One — the ID Theft Affidavit — is The companies will review your claim and send
where you report general information you a written response telling you the outcome of
about yourself and the theft. their investigation. Keep a copy of everything you
• Part Two — the Fraudulent Account submit.
Statement — is where you describe the If you are unable to complete the affidavit, a
fraudulent account(s) opened in your legal guardian or someone with power of attorney
name. Use a separate Fraudulent Account may complete it for you. Except as noted, the
Statement for each company you need to information you provide will be used only by the
write to. company to process your affidavit, investigate the
When you send the affidavit to the compa- events you report, and help stop further fraud. If
nies, attach copies (NOT originals) of any support- this affidavit is requested in a lawsuit, the company
ing documents (for example, driver’s license or might have to provide it to the requesting party.
police report). Before submitting your affidavit, Completing this affidavit does not guarantee that
review the disputed account(s) with family mem- the identity thief will be prosecuted or that the
bers or friends who may have information about debt will be cleared.
the account(s) or access to them.

DO NOT SEND AFFIDAVIT TO THE FTC OR ANY OTHER

GOVERNMENT AGENCY
If you haven’t already done so, report the fraud passwords. Avoid using easily available
to the following organizations: information like your mother’s maiden
name, your birth date, the last four digits of
1. Any one of the nationwide consumer report- your Social Security number or your phone
ing companies to place a fraud alert on your number, or a series of consecutive numbers.
credit report. Fraud alerts can help prevent
an identity thief from opening any more 3. Your local police or the police in the com-
accounts in your name. The company you munity where the identity theft took place
call is required to contact the other two, to file a report. Get a copy of the police
which will place an alert on their versions of report or, at the very least, the number of
your report, too. the report. It can help you deal with credi-
tors who need proof of the crime. If the
• Equifax: 1-800-525-6285; police are reluctant to take your report, ask
www.equifax.com to file a “Miscellaneous Incidents” report, or
try another jurisdiction, like your state
• Experian: 1-888-EXPERIAN police. You also can check with your state
(397-3742); www.experian.com Attorney General’s office to find out if state
law requires the police to take reports for
• TransUnion: 1-800-680-7289; identity theft. Check the Blue Pages of your
www.transunion.com telephone directory for the phone number
or check www.naag.org for a list of state
In addition to placing the fraud alert, the Attorneys General.
three consumer reporting companies will
send you free copies of your credit reports, 4. The Federal Trade Commission. By sharing
and, if you ask, they will display only the last your identity theft complaint with the FTC,
four digits of your Social Security number on you will provide important information that
your credit reports. can help law enforcement officials across
the nation track down identity thieves and
2. The security or fraud department of each stop them. The FTC also can refer victims’
company where you know, or believe, complaints to other government agencies
accounts have been tampered with or and companies for further action, as well as
opened fraudulently. Close the accounts. investigate companies for violations of laws
Follow up in writing, and include copies that the FTC enforces.
(NOT originals) of supporting documents.
It’s important to notify credit card companies You can file a complaint online at
and banks in writing. Send your letters by www.consumer.gov/idtheft. If you don’t
certified mail, return receipt requested, so have Internet access, call the FTC’s Identity
you can document what the company Theft Hotline, toll-free: 1-877-IDTHEFT
received and when. Keep a file of your (438-4338); TTY: 1-866-653-4261; or write:
correspondence and enclosures. Identity Theft Clearinghouse, Federal Trade
Commission, 600 Pennsylvania Avenue,
When you open new accounts, use new NW, Washington, DC 20580.
Personal Identification Numbers (PINs) and

DO NOT SEND AFFIDAVIT TO THE FTC OR ANY OTHER

GOVERNMENT AGENCY
Name __________________________________ Phone number _______________________ Page 1

ID Theft Affidavit

Victim Information

(1) My full legal name is ___________________________________________________________

(First) (Middle) (Last) (Jr., Sr., III)

(2) (If different from above) When the events described in this affidavit took place, I was known as

____________________________________________________________________________
(First) (Middle) (Last) (Jr., Sr., III)

(3) My date of birth is ____________________

(day/month/year)

(4) My Social Security number is________________________________

(5) My driver’s license or identification card state and number are__________________________

(6) My current address is __________________________________________________________

City ___________________________ State _________________ Zip Code ______________

(7) I have lived at this address since ____________________

(month/year)

(8) (If different from above) When the events described in this affidavit took place, my address was
______________________________________________________________________________

City ___________________________ State _________________ Zip Code ______________

(9) I lived at the address in Item 8 from __________ until __________

(month/year) (month/year)

(10) My daytime telephone number is (____)____________________

My evening telephone number is (____)____________________

DO NOT SEND AFFIDAVIT TO THE FTC OR ANY OTHER

GOVERNMENT AGENCY
Name __________________________________ Phone number _______________________ Page 2

How the Fraud Occurred

Check all that apply for items 11 - 17:

(11) ❑ I did not authorize anyone to use my name or personal information to seek the money,
credit, loans, goods or services described in this report.

(12) ❑ I did not receive any benefit, money, goods or services as a result of the events described
in this report.

(13) ❑ My identification documents (for example, credit cards; birth certificate; driver’s license;
Social Security card; etc.) were ❑ stolen ❑ lost on or about __________________.
(day/month/year)
(14) ❑ To the best of my knowledge and belief, the following person(s) used my information (for
example, my name, address, date of birth, existing account numbers, Social Security
number, mother’s maiden name, etc.) or identification documents to get money, credit,
loans, goods or services without my knowledge or authorization:

_________________________________ ____________________________________
Name (if known) Name (if known)
_________________________________ ____________________________________
Address (if known) Address (if known)
_______________________________ ____________________________________
Phone number(s) (if known) Phone number(s) (if known)
_________________________________ ____________________________________
Additional information (if known) Additional information (if known)

(15) ❑ I do NOT know who used my information or identification documents to get money,
credit, loans, goods or services without my knowledge or authorization.

(16) ❑ Additional comments: (For example, description of the fraud, which documents or
information were used or how the identity thief gained access to your information.)

____________________________________________________________________________________

____________________________________________________________________________________

____________________________________________________________________________________

_____________________________________________________________________________________

____________________________________________________________________________________
(Attach additional pages as necessary.)

DO NOT SEND AFFIDAVIT TO THE FTC OR ANY OTHER

GOVERNMENT AGENCY
Name __________________________________ Phone number _______________________ Page 3

Victim’s Law Enforcement Actions

(17) (check one) I ❑ am ❑ am not willing to assist in the prosecution of the person(s) who
committed this fraud.

(18) (check one) I ❑ am ❑ am not authorizing the release of this information to law
enforcement for the purpose of assisting them in the investigation and prosecution of the
person(s) who committed this fraud.

(19) (check all that apply) I ❑ have ❑ have not reported the events described in this affidavit
to the police or other law enforcement agency. The police ❑ did ❑ did not write a
report. In the event you have contacted the police or other law enforcement agency, please
complete the following:

_____________________________ _________________________________
(Agency #1) (Officer/Agency personnel taking report)
____________________________ _________________________________
(Date of report) (Report number, if any)
_____________________________ _________________________________
(Phone number) (email address, if any)

_____________________________ _________________________________
(Agency #2) (Officer/Agency personnel taking report)
_____________________________ _________________________________
(Date of report) (Report number, if any)
_____________________________ _________________________________
(Phone number) (email address, if any)

Documentation Checklist

Please indicate the supporting documentation you are able to provide to the companies you plan to
notify. Attach copies (NOT originals) to the affidavit before sending it to the companies.

(20) ❑ A copy of a valid government-issued photo-identification card (for example, your driver’s
license, state-issued ID card or your passport). If you are under 16 and don’t have a
photo-ID, you may submit a copy of your birth certificate or a copy of your official school
records showing your enrollment and place of residence.

(21) ❑ Proof of residency during the time the disputed bill occurred, the loan was made or the
other event took place (for example, a rental/lease agreement in your name, a copy of a
utility bill or a copy of an insurance bill).

DO NOT SEND AFFIDAVIT TO THE FTC OR ANY OTHER

GOVERNMENT AGENCY
Name __________________________________ Phone number _______________________ Page 4

(22) ❑ A copy of the report you filed with the police or sheriff’s department. If you are unable to
obtain a report or report number from the police, please indicate that in Item 19. Some
companies only need the report number, not a copy of the report. You may want to check
with each company.

Signature

I certify that, to the best of my knowledge and belief, all the information on and attached to this
affidavit is true, correct, and complete and made in good faith. I also understand that is affidavit or the
information it contains may be made available to federal, state, and/or local law enforcement agencies
for such action within their jurisdiction as they deem appropriate. I understand that knowingly making
any false or fraudulent statement or representation to the government may constitute a violation of
18 U.S.C. §1001 or other federal, state, or local criminal statutes, and may result in imposition of a fine
or imprisonment or both.

_______________________________________ __________________________________
(signature) (date signed)

______________________________________
(Notary)

[Check with each company. Creditors sometimes require notarization. If they do not, please have one
witness (non-relative) sign below that you completed and signed this affidavit.]

Witness:

_______________________________________ __________________________________
(signature) (printed name)

_______________________________________ __________________________________
(date) (telephone number)

DO NOT SEND AFFIDAVIT TO THE FTC OR ANY OTHER

GOVERNMENT AGENCY
Name __________________________________ Phone number _______________________ Page 5

Fraudulent Account Statement

Completing this Statement
• Make as many copies of this page as you need. Complete a separate page for each
company you’re notifying and only send it to that company. Include a copy of your
signed affidavit.
• List only the account(s) you’re disputing with the company receiving this form. See the
example below.
• If a collection agency sent you a statement, letter or notice about the fraudulent account,
attach a copy of that document (NOT the original).

I declare (check all that apply):

❑ As a result of the event(s) described in the ID Theft Affidavit, the following account(s) was/were
opened at your company in my name without my knowledge, permission or authorization using
my personal information or identifying documents:

Creditor Name/Address Account Type of unauthorized Date Amount/Value

(the company that opened the Number credit/goods/services issued or provided
account or provided the goods or provided by creditor opened (the amount
services) (if known) (if known) charged or the
cost of the
goods/services)
Example
01234567-89 auto loan 01/05/2002 $25,500.00
Example National Bank
22 Main Street
Columbus, Ohio 22722

❑ During the time of the accounts described above, I had the following account open with your company:

Billing name ___________________________________________________________________

Billing address__________________________________________________________________

Account number _______________________________________________________________

DO NOT SEND AFFIDAVIT TO THE FTC OR ANY OTHER

GOVERNMENT AGENCY
 Annual Credit Report Request Form
You have the right to get a free copy of your credit file disclosure, commonly called a credit report, once every 12 months, from e
the nationwide consumer credit reporting companies - Equifax, Experian and TransUnion.
For instant access to your free credit report, visit www.annualcreditreport.com.
For more information on obtaining your free credit report, visit www.annualcreditreport.com or call 877-322-8228.
Use this form if you prefer to write to request your credit report from any, or all, of the nationwide consumer credit reporting companies. The
following information is required to process your request. Omission of any information may delay your reque
Once complete, fold (do not staple or tape), place into a #10 envelope, affix required postage and mail to:
Annual Credit Report Request Service P.O. Box 105281 Atlanta, GA 30348-5281.
Please use a Black or Blue Pen and write your responses in PRINTED CAPITAL LETTERS without touching the sides of the boxes like the examples listed below:

Social Security Number: Date of Birth:

- - / /
Month Day Year
Fold Here Fold Here

First Name M.I.

Last Name JR, SR, III, etc.

Current Mailing Address

House Number Street Name

Apartment Number / Private Mailbox For Puerto Rico Only: Print Urbanization Name

City State ZipCode

Previous Mailing Address (complete only if at current mailing address for less than two years):

House Number Street Name

Fold Here Fold Here

Apartment Number / Private Mailbox For Puerto Rico Only: Print Urbanization Name

City State ZipCode

I want a credit report from (shade

each that you would like to Shade here if, for securit
Shade Circle Like This > reasons, you want your credit
receive):
report to include no more than
Equifax the last four digits of your
Not Like This >
Experian Social Security Number.
TransUnion

If additional information is needed to process your request, the consumer credit

reporting company will contact you by mail. 31238
Your request will be processed within 15 days of receipt and then mailed to you.
Copyright 2004, Central Source LLC

70
 FREQUENTLY ASKED QUESTIONS
Q. What if I want to hire a credit repair company to fix my credit?

A. Most credit repair companies cannot spend the amount of time necessary to factually dispute items
off your credit report. If you pay an attorney firm $39 a month to repair your credit how much time can
they realistically spend asking you questions about each account, contacting the original creditor, cross-
referencing each item with each bureau, etc. This is why these types of credit repair firms can actually
do more harm to your credit score than good! Avoid these types of companies and only deal with
someone reputable. For more information please visit http://www.nationalcrediteducators.com.

Q. Would placing a fraud alert on my credit file before disputing give me better results?

A. No. Anyone can make a phone call. The credit bureaus want consumers to use the FTC’s Identity
Theft Affidavit when disputing fraudulent accounts. If identity theft has actually occurred, consumers
can protect their credit file from further damage by adding a fraud alert and instructing creditors to call
them at a specific phone number if credit is applied for. Here’s what will give you better results:
determining what items are being reported incorrectly and disputing them factually.

Q. I’ve never heard of Innovis. Are they really an important credit bureau?

A. Absolutely. Remember, banks and lenders buy lists of consumers who meet their scoring criteria
(this is also know as pre-screening) in order to offer them pre-approved credit cards and Innovis has a
service which “cleans” that list. In addition, Innovis may soon get government approval to score con-
sumer credit reports and sell your information to other lenders. Keep your eye out for Innovis!

Q. I have a bankruptcy on my credit report. Should I dispute the discharged items first or the
actual bankruptcy listing?

A. It’s pretty difficult to remove a bankruptcy when the credit bureau can not only verify the bankruptcy
itself but can also verify the list of items included in bankruptcy. The only way to remove a bankruptcy
completely from your report is by 1) Luck, or 2) Violations. If the credit bureau violates the FCRA, you
can occasionally persuade them to delete the listing. This usually requires a lot of persistence and
letter writing. In some cases, you will have no other choice but to sue them and have the deletion of the
bankruptcy as part of your settlement. Remember, if you can’t get the bankruptcy removed, it’s not the
end of the world. Focus on the accuracy of the items included in the bankruptcy.

Q. I have a charge-off on my Experian and TransUnion report. How do I determine the date of
last activity of these accounts when they don’t list it?

A. Experian will usually list the month and year the account charged off. If they list “Charge off as of Jul
2006” you can count 6 months back (180 days) and assume the DOLA was around February, 2006.
TransUnion lists an estimated date the item will be removed. Let’s say it’s 08/2009. Go backwards 7
years and you come to 08/2002. Where do these dates come from? The original creditor is required
to report the date so contact the creditor to verify that information. Never take the credit bureau’s word
for it, because re-aging happens all the time! If you can find re-aging, and more importantly, prove it,
with documents from the original creditor - you can demand and get deletion! Equifax actually lists the
DOLA so you can check the dates across each bureau (assuming their date is correct) to see if there
are any discrepancies. If you find large discrepancies you can bet re-aging has taken place!

Copyright 2007-2012
Consumer Publishing Group
71 NEXT PAGE

Q. I have a paid derogatories on my credit report. How do I get them deleted?

A. If they’re paid accounts, why deleted them? Paid derogatories don’t always hurt your score. The
older they are the less of an impact they have. In fact, in some cases deleting a paid derogatory can
lower your score! Remember, a perfect credit report is not always the highest scoring. Don’t ever be
embarrassed about a paid derogatory. A paid account is an honorable account.

Q. Should I use your letters word for word or write my own?

A. Our letters are examples. A consumer can copy them but it’s best for consumers to write their own
letters in their own style of speech. You can even handwrite them. The less “boilerplate” the dispute
looks the better the results. If it looks like it was copied out of a book or found on the internet the credit
bureaus may not take it as seriously. In addition, some consumers use their own personalized station-
ary to give more of an authentic appearance. If you’re a poor writer (or just lazy like me) consider
getting the Ultimate Credit Letters Disk by going to http://www.consumerpublishinggroup.com.

Q. What are some of my options if I am in debt up to my ears?

A. Some consumers consider bankruptcy, however because of the current “means test” it’s much
more difficult to qualify for Chapter 7. This means consumers are only eligible for credit counseling
(don’t miss our chapter on that mistake!) before they can file Chapter 13. And the majority of Ameri-
cans who have done either eventually end up in Chapter 7 anyway and get stuck with TWO bankrupt-
cies. In our opinion it usually best for consumers with debt in excess of $10,000 to either do their own
debt negotiation or consult a debt negotiation specialist.

Q. What do I do if a creditor, credit bureau or collection agency ignores my Identity Theft

Affidavit or refuses to take my fraud claim seriously?

A. Consumers can contact the Federal Trade Commission Consumer Response Center at 1-877-
382-4357 to speak with a counselor. They also have hundreds of publications consumers can request
as well. More information can be found by going to http://www.ftc.gov. However, don’t hold your breath
for government help. You just may have to sue!

Q. What is some of your techniques are not working. What do I do next?

A. First of all, make sure you are doing them correctly. If your disputes aren’t really factual, or if you
purchase your credit reports online, or if you sign up for one of those free credit report services, or if
you’re rude to the bureaus or to your creditors over the phone, etc., then we suggest you change your
approach. In addition, nothing works 100% of the time. If it did, life would not have its challenges and
just about everything would be meaningless.

Q. Can you refer me to an attorney that can help me?

A. No. We are not an attorney referral service. You may just have to step up to the plate and initiate a
lawsuit yourself. There are very few attorneys who are going to take a case that pays $1,000, $2,000
or $3,000 in damages. I’m not saying there aren’t any, they’re just not standing on rooftops yelling, “We
can help you sue the credit bureaus!” However, there is a growing movement of legal advocates and
attorneys that are now specializing in consumer protection law. One such organization is http://
www.NACA.net. Check out their website and see if they can be of any assistance.

Copyright 2007-2012
Consumer Publishing Group
72 NEXT PAGE

 WHAT DEBT COLLECTORS DON’T
WANT YOU TO KNOW!
By now most people have heard of the “cease and desist” letter to stop
those annoying calls from debt collectors. However, did you know there are
several different types?

CEASE AND DESIST - PHONE CALLS ONLY

You ask the debt collector to stop calling you and only correspond by mail.
This allows them to write you letters. In some cases, you’ll want communica-
tion. For example, if you’re contacted by an attorney debt collector you can
negotiate with them by mail. Or, if you’re contacted by a collection agency
you’ll want them to be able to respond with a letter stating your account has
been deleted. This method doesn’t require any special wording and you don’t
even need to know what the law is anymore (they already know it). “I dispute
account number [xxx]. Cease and desist all telephone communication. How-
ever, I would be happy to correspond with you by mail.”

CEASE AND DESIST - PHONE CALLS AND CORRESPONDENCE

This is where you take the “cease and desist” one step further. No phone
calls and no written communication. I would only use this type of notice if you
are positive the account is not yours. Otherwise, you leave the debt collector
with no other option but to sue you in order to collect. “I dispute account
number [xxx]. This is not my account. Cease and desist all communications
with me.”

CEASE AND DESIST - ALL

Last but not least, there’s the “cease and desist” all collection activity. That
includes phone calls, letters, credit bureau reporting and any type of
legal action. If you put a debt collector on notice that an account is not yours,
or is the result of identity theft, or that you have no contractual relationship with
them and they continue collection activity they are now knowingly and wilfully
violating the law. “I dispute account number [xxx]. [Factual reason, i.e. we have
no business relationship, it’s not my account, this creditor has been paid, etc.]
Cease and desist all collection activity including any negative reporting to the
credit bureaus.”

Copyright 2007-2012
Consumer Publishing Group
73 NEXT PAGE

 HOW TO BORROW UP TO $10,000.00 IN LESS
THAN 48 HOURS AND PAY ZERO INTEREST!
This method is another one we’ve never released to the public - until now! It’s
essentially a two step method commonly used (and guarded) by the rich and wealthy to
borrow large sums of capital for short or long-term investments. The good news is now
the average consumer can benefit from it despite their economic status!

STEP 1 - BUILDING YOUR CREDIT SCORE TO 700 (OR ABOVE)

The first key to doing this is by building a solid payment history. This means you
never, ever want to pay your credit card bills off in full every month! 99% of the time
you should carry a balance on your accounts and maintain a debt to credit ratio of 10%
to 30%. This means if your card has a limit of $500, you’ll always want to carry a
balance of $50 to $150.

Here are two reasons why: Banks make money off interest. If you don’t carry
any balance, they don’t collect any interest. Your debt to credit ratio would be zero.
This means you AREN’T USING ENOUGH credit. Second, by carrying a balance you
establish a “payment history,” and paying on time every month shows you can manage
your credit responsibly. Likewise, if your debt to credit ratio goes beyond 30%, this can
show you may be using credit IRRESPONSIBLY!

Building a solid payment history and maintaining the right debt to credit ratio
are two very important score building keys; another is your “high credit limit”. Let’s
say you started with one $500 credit card. And after a few months you get approved for
a $1,000 credit card. You now have a total high credit limit of $1,500. The higher that
figure gets, your “high credit limit”... We believe the more credit worthy you appear and
the scoring system reflects that.

Once you get your credit score built up to approximately 700 (or above), and
while still maintaining that 10% to 30% debt to credit ratio, it’s now time for...

STEP 2: THE “PRE-SCREEN PAYMENT METHOD”!

In this example, let’s say you now have a total of 3 credit cards, each with limits of
$1,000, and you have one credit card with a limit of $2,500. Even though you’ve been
showing a payment history on all your accounts for 12 to 24 months, now it’s time to
switch things up...
Copyright 2007-2012
Consumer Publishing Group
74 NEXT PAGE

 Here’s how: Pay off all your lower limit accounts in full! In the example we’re
using, that would be your 3 credit cards with a $1,000 limit. Let’s say you owed 10% on
each account, so you’d pay $100 on each card bringing their balance down to zero.

WHAT HAPPENS NOW AND HOW THIS REALLY WORKS!

The paying off of those accounts will cause a dramatic shift in your credit report.
In this scenario two things will happen within 30-45 days. 1) You will begin receiving
attractive “balance transfer” offers from other companies, and 2) You will begin receiv-
ing balance transfer “checks” from the lower limit credit cards you paid off competing
to get your business back! It is not uncommon for these balance transfers and
checks to be “pre-approved” (no credit check and no co-signer) and 100% inter-
est free for 6 to 12 months!

PAYMENT, PRE-SCREEN AND FLOAT!

By simply floating these balance transfers from one to the other you can borrow
money at 0% for as long as you want! 6 months... 6 years... Or more! We have
numerous clients who had absolutely no credit and after 18 months have built over
$50,000 in unsecured credit using this method. They routinely leverage their credit this
way to invest in business opportunities, real estate and other investments.

GET A $25,000 MICRO-LOAN TO START A NEW BUSINESS!

Surveys have showed that approximately 33% of the top 500 fastest growing
companies started with less than $10,000. The fact is, it doesn’t take a lot of money to
start a small business and the more people you employ - the more taxes you’ll pay!
That’s why the government has set up Micro-Enterprise Programs where you can
borrow up to $25,000 to start or expand a business. Contact the Small Business Ad-
ministration at 1-202-205-6490 for more information.

THE ONE “HIDDEN SOURCE” THAT WILL LOAN WOMEN AND

COUPLES UP TO $10,000 TO START OR EXPAND A NEW BUSINESS!

Count Me In For Women’s Independence is a national non-profit micro-lender

that raises money from women to be loaned to women who are starting businesses to
support themselves and their families. Count Me In provides loans from $500 to $10,000.
You your first loan must be $5,000 or less. However, after you’ve paid the loan you’ll
be eligible for higher loan amounts. For more information visit their website at http://
www.CountMeIn.org.
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 THE TWO SECRETS YOU NEED TO KNOW
BEFORE CALLING ANY “NONPROFIT”
CREDIT COUNSELING SERVICE!
You’ve probably seen those annoying debt relief commercials on television. We
did some investigative work when it came to understanding just how these businesses
ran and stumbled upon a few shocking things you need to know before calling! The
first thing we noticed were catch phrases in their names, like “non-profit” and “counsel-
ing” but these companies are not charitable organizations solely out to help the public.
They do help some people get out of debt, but after reading this chapter I think you’ll
agree: it’s a lot cheaper doing it yourself!

ARE YOU BEING DECEIVED BY “NONPROFIT”

DEBT CONSOLIDATION COMPANIES?

Here’s how most Debt Consolidation Companies work. First, they all seem to
claim having a ‘special’ relationship with thousands of creditors, implying they can
negotiate and reduce your debt better than you could yourself! The fact is, the only
relationship they have with creditors involves a computer database and a printer (which
sends out debt negotiation letters on your behalf). This is simply a marketing ploy to
make it appear they can accomplish more than you could negotiating yourself. As I’ll
explain later, with the right information you can accomplish much more than any Debt
Consolidation Company could ever dream of!

HOW SOME CONSUMERS ARE GETTING RIPPED OFF...

Debt Consolidation Companies typically offer a “free” initial consultation (a.k.a.

Sales pitch), where they obtain the names and account numbers of your creditors, in-
cluding the balances owed on your accounts. Now, they are in a position where they
can formulate a plan for your debt free future and tell you how many decades it will take
to pay off your debt if you don’t use their service (and the benefits if you do). Basically,
they give their pitch. They’re a business, and that’s fine.

However, then come the fees! Some companies want $5 per creditor, others have
a “flat-rate” debt relief plan for only $39.95 a month. Let’s just say you go for the flat-
rate plan for $39.95 a month, or $480 a year, and if you’re on a 5 year payment plan,
we’re talking about $2,400! Now that’s a lot of money, but wait, it gets even worse!
Debt Consolidation Companies can also receive “commissions” from YOUR creditors

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ranging between 10 to 15% behind your back.

Let’s say you’re paying off $10,000 dollars in debt and one of these “debt relief
heroes” cuts your 23% interest rate accounts down to ZERO (the average they can
actually do is about 7%). With NO INTEREST, you could pay $166 a month and be
debt free in 5 years. If their back-end commission were just 10% that would be $16.60
a month, and over a 5 year period, that adds up to almost $1000 dollars. When you total
the figures up, they’re charging you a total of $3,400 dollars doing something you can
do yourself, and do better, with just a little time, a computer and some postage stamps!

WHOSE SIDE ARE THEY ON ANYWAY?

What’s worse is that while many Debt Consolidation Companies give you the
impression they’re working for you, they’re also working for the creditors, because
that’s where a large chunk of their profits come from! Since they’re getting a monthly
fee, as well as a commission from the creditors, it’s in their best interest to stretch your
payment plan out as long as possible. While most of these organizations are probably
ethical, the conflict of interest and amount of fees we’ve described here is enough to
make any consumer a bit on uncomfortable. Wouldn’t you agree? But there’s more to
the story... Yes, I’ve saved the WORST for last!

HOW DEBT CONSOLIDATION CAN RUIN YOUR CREDIT

When Debt Consolidation Companies contact your creditors (through the postal
service, just like you could) to reduce your interest and monthly payments, the most
common way they accomplish this is to CLOSE your accounts. Now, let me ask you a
question: If you’ve got 6 accounts, late pays and you CLOSE all 6 accounts, do you
think your credit will be improved? Your credit score will probably go down. I can
guarantee you one thing, when your accounts are closed there will be a notation by them
that you used debt consolidation! Sure, they may help you get out of debt and consoli-
date your payments into one lower payment, but what they’re not telling you is they are
not negotiating the amount of the debt you owe, just the interest. This type of decep-
tion, in our opinion, is scandalous. You can achieve better results negotiating directly
with your creditors using the methods and techniques in this guide!

DEBT CONSOLIDATION VS. “ACCORD & SATISFACTION”

When a Debt Consolidation Company contacts your creditor, their approach is to

renegotiate the current contract. However, by using the Accord & Satisfaction (A&S)
process, you’re offering a completely new contract. The old agreement, which you may
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be in default over, or have late-pays, will be extinguished and replaced with a new agree-
ment. This is assuming the creditor accepts the terms of the A&S. With this approach,
you can reduce the amount you owe by as much as 60%, lower or even freeze your
interest rate; have the old accounts deleted from your file, and have the new accounts
reported as either “CURRENT”, or if you’re settling them with a lump sum payment,
“PAID AS AGREED.”

WHY DEBT CONSOLIDATION COMPANIES ‘DO WHAT THEY DO’...

It’s our guess that Debt Consolidation Companies don’t use the A&S process
because their current approach is much more profitable for their company. Again, we
come back to the ‘conflict of interest’ issue between these companies dipping into your
pockets, and getting commissions from your creditors. We don’t know about you, but
we wouldn’t trust any company that claims to be a ‘debt relief hero’, while at the same
time lowering (or at least not raising) your credit score for up to 5 years. Sounds like a
raw deal to us, especially when they’re raking in thousands out of your pockets using
such a simple process!

IRS Revoking Exemptions Of Credit Counselors

“The Internal Revenue Service has concluded that more than 30 credit-counseling firms -- ac-
counting for more than half of the industry's revenue -- are not entitled to tax-exempt status. Five
firms, mostly small ones, have already had their tax-exempt status revoked, while the rest have
been notified of the agency's intention, according to the agency. The proposed and final revoca-
tions are the results so far of 60 audits the IRS has been conducting for more than two years into
credit-counseling organizations. The audits were prompted by hundreds of consumer com-
plaints of deceptive business practices, including high fees, high-pressure tactics and inad-
equate educational services. The IRS has been trying to determine if credit-counseling agen-
cies were misusing their tax-exempt status to take advantage of financially strapped consum-
ers.

Steven T. Miller, commissioner of the IRS's tax-exempt and government entities division, said
the agency is seeking revocations for a combination of reasons. In some cases, "we do not
believe they are providing sufficient education to the debtor," he said. "Or regardless of what they
are providing, too much money is being siphoned out of these organizations and going into the
pocketbooks of the CEOs and for-profit affiliates." To date, none of the credit-counseling agen-
cies under review has been given a clean bill of health. However, Miller said, "I think some of
them, as we continue, will pass muster." The firms can appeal the proposed revocations, but, if
they do take effect, "that doesn't mean we're closing their doors," Miller said. It means "they are
a taxable entity and are responsible for income tax like any other corporation."

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Predatory Lending Specialist Spills The Beans
On The 7 Most Common Mortgage Scams!
An Interview with Ken Delashmutt.

Note: The tips below regarding mortgage loans apply in most States.

Q. Mr. Delashmutt, what are some common home equity scams?

A. According to the Federal Trade Commission (FTC), you should be aware of the
following schemes:

1. Equity Stripping. A lender tells you that you can get a loan, even though you know
your income is not enough to keep up the monthly payments. The lender is attracted by
the high equity in your home. The lender may encourage you to "pad" your income
on your application form to help get the loan approved. The lender doesn't care if
you can't make your monthly payments. As soon you miss a payment, the lender will
foreclose - taking your home and stripping you of the equity you spent years building.

2. Balloon Payments. You are behind in your mortgage and face foreclosure. Another
lender offers to save you by financing your mortgage and lowering your monthly pay-
ments. Check the loan terms carefully because the payments may be lower because the
lender is offering a loan on which you repay only the interest each month. At the end, the
principal (i.e. the entire amount borrowed) is due in one lump sum, called a "balloon
payment". If you can't make the balloon payment or refinance the debt, you face foreclo-
sure again.

3. Loan Flipping. Suppose you had your mortgage for years but could use some extra
money. A lender calls to talk about refinancing, and using the availability of extra cash as
"bait", claims it is time that the equity in your home started "working" for you. You agree
to refinance. If, after a few payments, the lender calls to offer you a bigger loan for
another purpose; say a vacation. If you accept, the lender refinances your original loan
and then lends you additional money. In this practice, called "flipping", the lender
charges you high points each time you refinance, and may increase your interest
rate is well. If the loan has a prepayment penalty, you pay that each time you get a new
loan. With each refinancing, you increase your debt and probably pay a high-price for
some extra cash. After a while you are over your head and face losing your home.

4. The "Home Improvement" Loan. A contractor knocks on your door and offers to

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install new roof at a price that sounds reasonable. You say that you are interested but
can't afford it. He says he can arrange financing through a lender he knows. You agree
and he begins the work. At some point after he starts, you are asked to sign some papers.
The papers may be blank or the lender may rush you to sign before you have time to read
what you've been given. The contractor threatens to leave the work on your house
unfinished if you don't sign. You sign the papers and later realize that you have signed
a home equity loan. The interest rate, points, and fees seem very high. To make matters
worse, the work on your home isn't done right or hasn't been completed (or even started).
The contractor has been paid by the lender and has little interest in doing the work to
your satisfaction.

5. Credit Insurance Packing. Lenders use many tricks to get you to buy credit
insurance that you do not need. At the closing, the lender gives you papers to sign that
include charges for credit insurance or other "benefits" that you did not ask for and do
not want. The lender hopes you don't notice and doesn't explain how much extra money
the insurance costs. You may not ask questions or object because you are afraid that you
might lose the loan if you do. The lender may say that insurance comes with the
loan to fool you into believing that it comes at no extra cost. If you object, the
lender may even tell you that if you want a loan without the insurance, the papers must be
rewritten which could take extra time and cause the manager to reconsider whether to
approve it. When you agree to buy the insurance, you're paying extra for the loan by
purchasing a product you may not want or need.

6. Mortgage Servicing Abuses. After your mortgage is approved, some lenders try to
trick you into paying more than you owe. You may get a letter saying that your monthly
payments will be higher than you expected. The lender says your payments include
escrow taxes and insurance, even though you paid for them yourself with the lender's
okay. In a later message, the lender says you are being charged late fees, even though
your payments have been on time. You may receive a message saying that you failed to
maintain required property insurance and the lender is buying more costly insurance at
your expense. Unexplained legal fees are added to the amount you owe without an
accurate or complete account of those charges. You ask for a payoff statement to
refinance and receive one that is inaccurate or incomplete.

7. Signing Over Your Deed. If you face foreclosure you may feel desperate. Another
"lender" may contact you with an offer to help you find new financing. Before he can
help you, he asks that you deed your property over to him (claiming it is a temporary
measure to prevent foreclosure). The refinancing that would save your home never comes
through. Once the lender has the deed to your property, he starts to treat it as his own.
He borrows against it or sells it for his benefit. He treats you as a tenant in your own
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home and your mortgage payment as rent. If your "rent" payments are late, you'll be
evicted.

Q. How can I protect myself against home equity scams?

A. To protect yourself against losing your home DON'T...

1. Agree to buy something on the spot because the lender says it might

not be available later,

2. Agree to a home equity loan if you can't afford the monthly payments,

3. Sign any document that you haven't read or which has blank spaces,

4. Let anyone pressure you into signing anything,

5. Agree to a loan that includes credit insurance that you don't want,

6. Let promises of extra to cash or lower payments cloud your judgment,

7. Deed your property to anyone,

8. Sign loan paperwork before receiving the TILA disclosures (interest rates, monthly ...
payments, etc.) and Real Estate Settlement Procedures Act, (RESPA) settlement sheet
(details closing costs) and fully understand them).

And make sure to...

9. Keep good records,

10. Challenge any charges you think are inaccurate,

11. Check the contractor's references and get more than one estimate,

12. Shop around for rates, charges, and estimates,

13. Ask if credit insurance is required as a condition of the loan,

14. Shop around for credit insurance if it is required,

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15. Know your rescission rights (see below),

16. Seek advice from knowledgeable family members or others you trust,

17. Investigate the reputation of any prospective lender, and...

18. Seek legal advice.

Q. If I pledge my home as security for a consumer loan, what dangers do I face?

A. If you own a home it is likely to be your greatest single asset. Unfortunately, if you
agree to a loan that is based on the equity which you have in your house, you are putting
your most valuable asset at risk. You should be careful because certain abusive or ex-
ploitative lenders (commonly called predatory lenders) target home owners, particularly
the elderly, minorities, low income persons and those with poor credit ratings. Although
there are many reputable lenders, the past few years have seen an increase in the mort-
gage credit market. Luckily, there is some protection under both federal and state law.
First, Congress passed the "Truth in Lending Act" (TILA) in 1968. TILA can be found
at 15 U.S.C. 1600 et. seq. It is implemented by the Federal Reserve Board's Regulation
Z at 12 CFR, Part 226 and by the Federal Reserve Board's Official Staff Commentary to
Regulations Z (OSC). In 1994, Congress passed the "Home Ownership and Eq-
uity Protection Act of 1994", which amended TILA to protect consumers who
could fall prey to "high cost" lenders. These high-cost mortgages (referred to as
Section 32 Mortgages by the Federal Reserve) require additional disclosures in mortgage
transactions consummated after October 1, 1995.

Q. When can I cancel a home equity loan?

A. When you use your home as collateral for a loan, TILA gives you the right to cancel
the credit transaction within three business days. This right of rescission gives you three
extra days to reconsider whether you want to use your home to guarantee payment for a
personal loan. It applies even if your home is a condominium, mobile home, or house-
boat, as long it is as it is your principal residence. The right applies to certain installment
loans as well as to home equity credit lines (a form of revolving credit in which your
home serves as collateral). You also have the right to rescind when you could lose
your home by operation of law. For example, if you sign a home repair contract and
agree to repay the debt in over four installments, the repairman could file a lien against
your home if you do not pay. Under those circumstances you also have the right to

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rescind within three days. The right to rescind does not apply to all situations where your
home is used as collateral for a loan. You do not have the right to rescind when:

1. You apply for a loan to buy or build your home;

2. You consolidate or refinance a loan already secured by your home with the same
creditor, without borrowing additional funds; or

3. A state agency is the creditor for the loan.

Q. What does it mean to rescind a loan?

A. To rescind means you are canceling the deal, i.e., deciding that you do not want the
loan or the service being financed. You can rescind within three days for any reason.
You may find better credit terms or simply change your mind.

Q. How can I rescind a credit transaction?

A. You have until midnight of the third business day after the transaction to rescind. Day
One is the first day after all three of the following events occur:

1. You sign the credit contract.

2. Your receive a Truth in Lending disclosure form containing certain important (material)
disclosures about the credit contract.. These disclosures explain the key terms of the
credit being offered. They are...

A.) The Annual Percentage Rate (APR),

B.) The finance charge,

C.) The amount financed,

D.) The total of payments, and

E.) The payment schedule.

F.) You receive two copies of a notice explaining your right to rescind.

If you decide to rescind, you must notify the creditor in writing that you are
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canceling the contract. You may use the form provided to you by the creditor or a letter.
Make sure that your written notice is delivered, mailed, or filed for telegraphic
transmission before midnight of the third business day. Regulation Z 226.23(a). You
cannot rescind by simply telephoning or visiting the creditor.

Q. Can I waive my right to rescind?

A. Yes. If you have a financial emergency, you may be unable to wait for three business
days. For example, you may need to borrow money quickly to have a damaged roof or
foundation repaired. You can waive your right to rescission if you have a "bona fide
personal financial emergency." If so, you can have a loan processed to meet the emer-
gency situation. You must give the creditor your own written statement (preprinted forms
do not count) describing the emergency and clearly stating that you are waiving your
right to rescind. The waiver must be dated and signed by you, as well as anyone else who
shares in the ownership of your home. Consider this decision carefully. If you waive
your right to rescind, you must go ahead with the deal.

Q. Am I entitled to any extra protections under TILA if I receive a high cost home
loan?

A. Yes. In 1994, Congress passed the "Home Ownership and Equity Protection Act of
1994," which amended TILA to protect consumers who could fall prey to "high cost"
lenders. These high-cost mortgages (referred to as Section 32 mortgages by the Federal
Reserve Board) require additional disclosures in mortgage transactions consummated
after 10-1-95. A failure to provide these disclosures gives a new basis to rescind a
Section 32 mortgage loan. Regulation Z 226.23(a)(3) and 226.32 (c).

Q. When must be additional disclosures in high-cost mortgages be given?

A. As noted above, traditional TILA disclosures must be given at the time the loan
papers are signed. Borrowers then have an additional three business days to rescind if
their homes are pledged as collateral. For high cost mortgage loans, the disclosures must
be given three days earlier, i.e., three days prior to the signing of the loan documents.

Q. What are the additional disclosures that must be made in high-cost mort-
gages?

A. Four additional disclosures are required. Regulation Z 226.32 (c). They are:

1. The following statement must be included:

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"You are not required to complete this agreement merely because you have received
these disclosures or have signed a loan application. If you obtain this loan, the lender will
have a mortgage on your home. You could lose your home, and any money you put into
it, if you do not meet your obligations under the loan."

2. The APR,

3. The dollar amount of the regular payment,

4. For variable rate loans, the creditor must say that the interest rate and monthly pay-
ment may increase and disclose the maximum possible monthly payment.

Q. Are there any loan terms in high cost mortgages which are forbidden by TILA?

A. Yes. If any of the following prohibited loan terms appear in a high cost mortgage loan,
you have a right to rescind:

1. Balloon payments, if the loan term is less than five years; 15 U.S.C.1639(e),

2. Advance payments, that is a payment schedule that consolidates more than 2 periodic
payments and pays them in advance from loan proceeds; 15 U.S.C.1639(g),

3. Negative amortization, which occurs when the borrower's payments are less than the
interest accruing on the loan, thus causing the principal to grow over the course of the
loan, instead of decreasing; 15 U.S.C.1639(f),

4. An interest rate which decreases after default; 15 U.S.C.1639(d)

5. Rebates which are calculated by method unfavorable to the consumer; 15

U.S.C.1639(d), and

6. Prepayment penalties with certain exceptions; 15 U.S.C.1639(c).

Q. Are there any acts or practices which TILA forbids by high rate mortgage
lenders?

A. Yes. Regulation Z 226.32 (e) forbids certain acts and practices in connection with
high rate mortgages. It isn't clear, however, whether any remedies, other than damages,
are available to consumers. The forbidden acts and practices are:

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1. Engaging in a pattern or practice of extending credit to consumers based on the value
of the consumer's equity ("equity skimming") where the consumer's income is insuffi-
cient to repay the loan.

2. Paying a home improvement contract directly from the loan proceeds (the lender is
permitted to issue a check payable jointly to the consumer and contractor or the con-
sumer alone or to a third party escrow agent).

3. Selling or assigning a high rate mortgage without furnishing the following statement to
the purchaser/assignee:

"Notice: This is a mortgage subject to special rules under the federal Truth in Lending
Act. Purchasers or assignees of this mortgage could be liable for all claims and defenses
with respect to the mortgage that the borrower could assert against creditor.
How does TILA define a high cost mortgage?

High cost mortgages fall into two categories. Neither category has a clear definition. The
first category is based on the APR and is "high cost" if the APR exceeds certain estab-
lished rates by more than 10% (Regulation Z, 226.32(a)(1)(i)). The second category is
based upon the "points and fees" charged to the borrower and is "high cost" where
"points and fees" exceed the greater of $400 or 8% of the "total loan amount" (Regula-
tion Z, 226.32(b)(1)).

Q. What can I do if my TILA rights are violated?

A. If your TILA rights are violated, you may enforce them in either state or federal court.

You have the following possibilities:

Suits for damages: you may file a civil lawsuit either as an individual or a class-action for
damages if the lender has failed to provide you with proper TILA disclosures; 15 U.S.C.
1640. You may also file a TILA counterclaim if you are sued on the debt. In an individual
action you may recover any actual damages that you have suffered plus:

(I) An amount equal to twice the finance charge,

(ii) For consumer lease violations, 25% of the total of monthly payments under the lease
( but not less than $100 nor more than $1000),or

(iii) For individual actions related to credit transactions, not under an open end credit
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plan that is secured by real property or a dwelling, not less than $200 or more than
$2,000.

(iv) For failure to comply with the disclosure requirements related to high interest mort-
gages, an amount equal to the sum of all finance charges and fees paid by the consumer,
unless the lender demonstrates that failure to comply is not material.

Class-action lawsuits. There is no minimum recovery for each member. The total
recovery to the class is limited to not more then $500,000 or 1% of the net worth of the
creditor.

Rescission rights. You may also sue or counterclaim to enforce your right to rescind a
loan transaction secured by your home. 15 U.S.C. 1635 & 1640 (a)(3). You also have the
right to enforce your rescission rights in the context of state court foreclosure proceed-
ings; 15 U.S.C. 1635(I). The allowed tolerance for an inaccurately disclosed finance
charge raised as a basis for rescission in foreclosure proceedings is only $35.00 [much
higher tolerances are allowed to consumer files and affirmative action (15 U.S.C. 1605
(f)).

Attorneys fees and court costs. If you are successful in a suit for either damages and/
or enforcement of rescission rights, the court should require that the lender pay your
attorneys fees and court costs.

Suits by state Attorney Generals. A state Attorney General may also sue to enforce the
requirements under 15 U.S.C. 1639 regarding high rate mortgages.

Q. What can lenders due to keep from paying me damages once they have vio-
lated TILA?

A. Even if a lender fails to accurately make all disclosures required by TILA, a lender
may avoid liability. First the lender is allowed to correct errors within sixty days after
discovering them, unless you have already filed a lawsuit or notified the lender in writing
of the error; 15 U.S.C. 1640 (b). Next, the lender may avoid liability by showing that the
violation was not intentional and resulted from a bona fide error, notwithstanding the
maintenance of procedures reasonably adopted to avoid the error. Such mistakes as
miscalculations, clerical errors, computer malfunctions, printing errors, etc., may be held
to be bona fide good faith errors; 15 U.S.C. 1640(b).

Q. What can I do if I am a victim of "Unfair Lending Practices"?

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A. A lender who willfully engages in an unfair lending practice described in this section is
guilty of a misdemeanor, so you can report the lender to the police, the District Attorney
or your State Attorney Generals office.

You can also sue the lender...

If you can prove the lender has "willfully" engaged in an unfair lending practice you
may recover three times the amount of your actual damages, costs and reasonable
attorney's fees. You also have a defense against the unpaid obligation of the home loan
to the extent of any damages awarded by a court and the court may cure any existing
default of your home loan and cancel any pending foreclosure sale, trustee's sale or other
sale to enforce the loan.

Q. What protections do I have if my lender tries to foreclose on my high-cost

mortgage?

A. If you develop a definite plan of action with well-timed, well-informed steps you can
stop, prevent or avoid foreclosure.

Q. I am in immediate danger of losing my home. What can I do?

A. You should immediately seek the advice of a lawyer and professional mortgage audi-
tor to review your loan documents to determine if an unfair lending practice has oc-
curred. If you file suit claiming an unfair lending practice, the foreclosure sale must be
postponed until at least 30 days following the date your complaint is filed with the court.

Q. My home was foreclosed upon a few months ago. What can I do?

A. Again, immediately seek the advice of a lawyer and professional mortgage auditor to
see if your home can be recovered because of unfair lending practices. Many preda-
tory lenders construct loans that they know the borrower cannot afford with
intent to foreclose at a later date. There are specialists dedicated to protecting con-
sumers from these unfair and abusive practices.

Q. How do I choose a predatory lending specialist?

A. Ask them for documentation proving they have challenged a lender and have been
successful (i.e. out of court settlement letter, court documents, etc.) If they won’t
provide hard evidence of their success I wouldn’t do business with them.

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 USING THE “FAIR CREDIT BILLING
ACT” TO YOUR ADVANTAGE!
The Fair Credit Billing Act requires fast action on the part of creditors and lenders when billing errors
occur in the consumers billing statements.

You are protected from:

A. Charges made by an unauthorized user of your credit cards,

B. Charges incorrectly identified by amount or date of purchase,

C. Charges for goods or service not accepted or not delivered as originally agreed upon,

D. Failure to accurately reflect payments, returns or other credit to your account,

E. Bills delivered to the incorrect address,

F. The right to withhold payment on any balance due to defective merchandise or service.

If you believe your bills are inaccurate, this is what you can do:

1. Contact the creditor within 60 days of the error in writing and include in the letter your name, account
number and the amount, which you believe is in error. Explain why you believe there is a mistake.

2. Be sure to send the letter to the special address for billing inquiries and put your letter in a separate envelope
from your payment and mail it certified mail.

3. While waiting for a response, you don't have to pay any charges on the questionable amount. But you do
have to pay the current correct charges.

4. Your account must be corrected or you must be informed why the creditor believes the bill is correct within
90 days.

5. If the creditor made a mistake you will not be charged finance fees. If no error was found, you do have to
pay accumulated finance charges and the amount due.

6. Not happy? You have 10 days to respond before the creditor imposes additional finance charges or
other charges.

THE FEDERAL TRADE COMMISSION

The Federal Trade Commission (FTC) enforces a variety of federal antitrust and consumer protection
laws. The FTC seeks to ensure that the nation's markets function competitively, and are vigorous, efficient, and

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free from undue restrictions.

The FTC also works to enhance the smooth operation of the marketplace by eliminating acts or
practices that are unfair or deceptive. In general, the FTC's efforts are directed toward stopping actions
that threaten consumers' opportunities to exercise an informed choice. Complaints from consumers
about creditors, collection agencies, and credit bureaus under the consumer protection laws can be filed with
the FTC. While the FTC rarely takes legal action, it does record complaints for statistical purposes which can
influence the legislative process.

One of the divisions of the FTC that concerns consumer credit is the Division of Credit Practices-
Bureau of Consumer Protection. The Division of credit practices enforces many of the nation's consumer
credit statutes, including:

A. The Equal Opportunity Act - which prohibits credit discrimination on the basis of sex, race, martial status,
religion, national origin, age, or receipt of public assistance.

B. The Fair Credit Reporting Act - which ensures the accuracy and privacy of information, kept by credit
bureaus and consumer reporting agencies. It give consumers the right to know what information credit
bureau's and consumer reporting agencies are distributing about them to creditors, insurance com-
panies, and employers.

C. The Truth in lending Act - which requires creditors to disclose in writing certain cost information, such as the
annual percentage rate (APR), before consumers enter into credit transactions.

D. The Fair Credit Billing Act - and The Electronic Fund Transfer Act - which establish procedures for
resolving mistakes on credit card and fund transfer accounts (ATM).

E. The Fair Debt Collection Practices Act - which prohibits debt collectors from engaging in unfair,
deceptive, or abusive practices, including over charging, harassment, and disclosing consumer debts to
third parties.

* Other laws include the Credit Practices Rule and The Fair Credit and Charge Card disclosure Act.

THE FEDERAL TRADE COMMISSION’S ADDRESS

_______________________________________________________

Federal Trade Commission

Division of Credit Practices
Consumer Response Center
600 Pennsylvania Ave. NW
Washington, DC 20580

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 TWO UNIQUE LETTERS YOU CAN USE TO
PAY OFF ALL YOUR BILLS
FOR AS LITTLE AS .35 CENTS ON THE DOLLAR!

Another option for those with too much debt is fair and honest debt negotiation, also
known as debt settlement. First of all, you must have something they want, and that’s
money. And they must offer you something you want, and that’s a more favorable
credit rating or a reduction of the total amount owed. The nice thing about debt
negotiation is you’re the one with the power! If you’re not paying your creditors
anything now, any conversation you initiate with them involving how they can get their
hands on your money will be of great interest to them! However...

YOUR CREDITORS COULD CARE LESS ABOUT YOU!

Don’t waste their time or yours by trying to explain your situation to them! If you’re
unable to pay them the entire amount owed, often they’ll be willing to negotiate a new
arrangement with you. The majority of the time, creditors will make their first offer at 40
to 50 cents on the dollar. You’ve got to break them down and show them who’s boss.
You’re going to tell them how it’s going to be! In other words, as long as they don’t
agree to your terms, they aren’t going to get one dime.

STARTING THE NEGOTIATION PROCESS

There are two ways to start the negotiation process. One is by calling the creditor
and playing tug-of-war over the phone; the other is simply initiating the process through
the mail. In either case, you’re going to need to call the original creditor and get the name
of the president, corporate executive officer, chief financial officer, debt-recovery de-
partment manager, or credit manager to address your negotiation letters. When you call,
simply explain what the situation is, but make sure you’re referred to someone who has
the authority to negotiate, someone at the top!

A SIMPLE AND EASY WAY YOU CAN NEGOTIATE BY MAIL...

It’s our opinion that from this point on, simply get off the phone and do your negotia-
tions through the mail, using what’s know as the “Accord & Satisfaction” (A&S) pro-
cess. The A&S process is like offering a new contract. The ‘accord’ is the agreement
between you and your creditor. The ‘satisfaction’ is the payment expressed in the
‘accord’, or new agreement. You’ll essentially be exchanging an old debt with terms that

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may reflect late-pays or a charge-off, with a new debt agreement with new terms. It’s
like starting from scratch again! Generally, when there’s a disagreement between you
and a creditor as to the amount of a debt or the terms of a contract, you can offer to pay
a specific amount in settlement of the debt under a new set of terms. The creditor can
accept the offer, cash your check, and consider the debt completely discharged, or paid
monthly with a new set of terms activated upon final payment.

A&S = OLD DEBT/TERMS EXCHANGED WITH NEW DEBT/TERMS

If you’ve paid in full, you can enjoy new terms of an agreement, such as having the
negative item deleted, and a new item reported as a positive item on your credit file. The
best status to negotiate for when you’ve finally satisfied the debt is “PAID IN FULL, AS
AGREED,” with no late payments or derogatory comments.

If you’re making monthly payments, the creditor should agree to delete the old ac-
count and report the new one as a “CURRENT” account in return for your first pay-
ment. Some creditors may not report your new account as “CURRENT” until you’ve
made three payments. That’s what negotiation is all about - finding out what two parties
can agree on and making a settlement. Another alternative is to have the creditor report
that you voluntarily closed the old account, which is called a “consumer closure” and
will appear on your file as “CLOSED,” with a new account showing as “CURRENT.”
Remember, you’re the one in charge here!

Now, the creditor has a few choices in the A&S process: 1) Accept the new
arrangement and get their money, or 2) Write the account off as bad debt, or file a lawsuit
in court!

If your A&S is successful, it will create a new contract and therefore prevent any legal
action or negative reporting against you regarding the previous agreement. But in order
for an A&S to be legally binding and hold up in court, there must be a “meeting of the
minds.” You, the debtor, have the burden of proof of showing that adequate notice was
provided, or that a “meeting of the minds” was reached.

ESTABLISHING A ‘MEETING OF THE MINDS’...

Without a “meeting of the minds” there is no contract. You, the debtor, must provide
adequate notice for the A&S to be legally binding. This is why it’s critically important to
locate the decision maker initially by telephone and keep their contact information and
any notes about your negotiations. When your A&S is ready, you can call up and
negotiate an agreement over the phone and then follow up the conversation with your
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written A&S agreement. Others prefer to just simply make an offer by mail and address
it to the individual who has the authority to negotiate settlements.

Once your letter is signed and returned by the creditor, you’ll mail a payment off to
them and finalize the agreement. By negotiating through the process of A&S, you can
reduce the amount of the debt you owe, negotiate better repayment terms and get a
favorable credit rating in the process. Remember, the creditor wants your money! So
negotiate hard. Your attitude should be... As long as they don’t agree to your terms, they
aren’t going to get one dime! A question I like to ask creditors is, “What’s the best you
can do for me today?”

BEFORE YOU GO MAKING THOSE CALLS...

Before getting the decision maker on the phone, write down the terms you want. Tell
them you have an outstanding balance of X, and it’s been past due by X number of
months or years, its current status on your credit report, and that you want to negotiate a
resolution and settle the debt. Tell them you will pay X-amount of dollars; Start with
25% of the total amount if you’d like.

Take it slow and make them sweat. You’re in no hurry! Pretend like you’re doing
them a favor, that you could always do other things with the money or simply file
bankruptcy. If they refuse anything less than 40%, tell them to think it over and just wait
a few weeks until you contact them again. Always try to deal with one person throughout
the process so you can develop that communication.

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 A&S TELEPHONE AGREEMENT
Your Full Name
Your Address

Creditor Name
Creditor Address
Date

Re: Account # ____________

Dear (person you reached agreement with on phone),

This letter is to confirm our telephone conversation on (date) regarding the full settlement of the above account. As we
discussed on the telephone, I will pay your company the amount of $__________ as full and final settlement for this
account in one lump sum/or/through monthly payments of $________ for ______ months. Upon receipt and endorse-
ment of payment, (name of creditor) hereby agrees to:

(Insert the EXACT agreement you made with the creditor, here are some examples...)

Delete the account noted above from all 3 major credit bureaus, within 30 days, and send me a written notice of such
deletion to the address listed in this letter;

Report the new account as “paid as agreed” upon receipt of lump sum payment, within 30 days; or,

Report the new account as “paid as agreed” upon receipt of final monthly payment, within 30 days, or,

Report the new account as “current” and “revolving” with no negative marks, and report the account as “paid as
agreed” upon receipt of final monthly payment, within 30 days, respectively; and,

Freeze all interest with respect to any monthly payment plan; and,

Cease all collection or legal activity on the extinguished account noted above, unless debtor goes over 90 days into
default on this Accord, which would render it null and void.

I appreciate your cooperation in this matter. If this settlement agreement is acceptable to your company under the laws
of Accord & Satisfaction, please acknowledge this with your signature in the space provided below and return a copy
to me. Upon receipt of the signed letter of agreement I will immediately forward a cashier’s check to you for the
amount stated above.

Thank you for your immediate attention to this matter.

______________________________ ___________________________ _____________

Authorized Representative Signature Print Name/Title Date

Sincerely,

(Signature)

Print Your Name

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 A&S NON-TELEPHONE AGREEMENT

Your Full Name

Your Address

Creditor Name
Creditor Address
Date

Re: Accord & Satisfaction - Account # ____________

Dear (person of authority you reached on phone but did not negotiate with),

This letter is to confirm our telephone conversation on (date) regarding the fact that I would like to make an offer of
full settlement of the above account. I will pay your company the amount of $__________ as full and final settlement
for this account in one lump sum/or/through monthly payments of $_________ for ______ months. Upon receipt and
endorsement of payment, (name of creditor) hereby agrees to:

Upon receipt and endorsement of one lump sum payment, or monthly payments, (name of creditor) will:

(Insert the terms you’d like the creditor to agree to, such as...)

Delete account noted above from all 3 major credit bureaus, within 30 days, and send me a written notice of such
deletion to the address listed in this letter;

Report the new account as “paid as agreed” upon receipt of lump sum payment, within 30 days; or,

Report the new account as “paid as agreed” upon receipt of final monthly payment, within 30 days, or,

Report the new account as “current” and “revolving” with no negative marks, and report the account as “paid as
agreed” upon receipt of final monthly payment, within 30 days, respectively; and,

Freeze all interest with respect to any monthly payment plan; and,

Cease all collection or legal activity on the extinguished account noted above, unless debtor goes over 90 days into
default on this Accord, which would render it null and void.

I appreciate your cooperation in this matter. If this settlement agreement is acceptable to your company under the laws
of Accord & Satisfaction, please acknowledge this with your signature in the space provided below and return a copy
to me. Upon receipt of the signed letter of agreement I will immediately forward a cashier’s check to you for the
amount stated above.

Thank you for your immediate attention to this matter.

______________________________ ___________________________ _____________

Authorized Representative Signature Print Name/Title Date

Sincerely,

(Signature)

Print Your Name

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 OTHER DEBT MANAGEMENT STRATEGIES
The average American family has about $25,000 to $30,000 worth of credit card debt (exclud-
ing secured debt and student loans). With a 2% minimum payment that leaves a monthly expense of
$500 to $600. What’s interesting is that many banks and financial institutions will begin RAISING
minimum monthly payments and in some cases DOUBLING them! But this news was kept quiet until
the new bankruptcy laws changes in October of 2005. I highly doubt there was any coincidence
there! Now imagine a families minimum credit card payments going from $600 to $1,200 a month.
That’s bad news for the 35 million families who pay only their minimum balances each month!

THE STRATEGY OF “DEBT ROLL-UP”

So where can consumers turn? Let’s discuss “debt roll-up.” This strategy involves paying
over the regular monthly minimums required on each of your accounts. By paying over and above the
minimums each month, you can greatly accelerate the time it takes to pay off your accounts. Of
course, this only applies if you can find extra cash or save extra money each month by changing your
spending habits. If you frequent coffee shops you’re probably spending - if you were to add it up - more
than $100 a month!

The basic concept of the “debt roll-up” strategy is to start by making a list of all your debts and
then ranking them in order of their size, starting with the smallest and working up to the largest. The
smallest debt will get paid off the quickest while keeping your other minimum payments current on all
your other accounts. Once the smallest debt is paid off, naturally you move onto the next largest credit
card debt on your list.

For this process to work it’s crucial consumers have a monthly budget (computers can help a
lot with software such as Quicken or Microsoft Money). If you’re confident you have enough disposable
income (income after expenses) then the “debt roll-up” approach can work well. On the flip side, if you
can only pay extra above the minimums here and there, you won’t really benefit much from this tech-
nique. If you’re a consumer who’s not yet drowning in debt financially, but still feeling a little anxiety and
pressure about getting too far into debt and being unable to pay at all, then the “debt roll-up” technique
is an excellent way to get started!

BORROWING YOUR WAY OUT OF DEBT!

Another debt management strategy is based on real estate ownership. If you have enough
equity in your home many banks will (in most cases) gladly lend you money against it. There’s little risk
to the lender because they can force a foreclosure on your property to recover their money if you
default. These programs are commonly called “second mortgages” or “home equity lines of credit”
(HELOCs). Let’s say you have $20,000 worth of equity in your home and you borrow $30,000 against
that equity to pay off all your bills. You then take that money and pay off your credit cards. If you’re very
disciplined, this plan can work. However, if a consumer’s gotten themselves in a mess once, they’re
most likely to make the same mistake twice, which is why many lenders do not loan money to con-
sumers who have filed bankruptcy!

Many people suddenly find themselves with some extra cash (or credit, which feels like free
money) so they get busy coming up with ways to spend it! Maybe a $5,000 vacation or trip for the
holidays to Cancun or a $3,500 plasma television home theatre system. Sounds tempting doesn’t it?
Before they know it, consumers find themselves back in $10,000 or even $20,000 in debt. Plus they
have a second mortgage payment to keep up with, so they’ve doubled their debt!
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 Another big problem with HELOCs is that consumers trade unsecured debt with secured
debt. If you default on your obligation again (many consumers make the same mistake more than
twice!) unsecured debt is much harder to collect than secured debt. With a secured debt the con-
sumer has pledged physical property (i.e., their home) as collateral and that property can then be
taken. Why trade unsecured debt with secured debt? For most people this is not the best move to
make, yet countless consumers fall for this trap year after year.

DECLARING BANKRUPTCY!
A declaration of bankruptcy forces all creditors to cease and desist from collections against the
petitioner. It can stop wage garnishment, kill court judgments, and generally wipe clean most debts,
depending on which form of bankruptcy is declared. For some people bankruptcy may be their only
option; however, in October of 2005 new bankruptcy laws went into effect. As you already know con-
sumers can file either chapter 7 or chapter 13. Chapter 13 is typically a bad idea because most
consumers end up eventually falling into chapter 7 anyway (which leaves then with 2 bankruptcies on
their credit report). 70% of Americans used to file chapter 7 bankruptcy but under new tougher rules it’s
much harder to qualify.

The way chapter 7 works is certain property becomes “exempt” from creditors, although these
exemptions vary from state to state. The court then liquidates “nonexempt” property and distributes it
to the creditors. The creditors usually get nothing, since most consumers filing chapter 7 have only
exempt property.

THE NEW ‘BK’ LAWS AND WHO TO THANK!

However, under chapter 13 you’re required to pay back a portion of the debt over a 5 year
period. Under the new laws today, the court applies a “means test” to determine which type of bank-
ruptcy you qualify for. If you can afford to pay $100 a month towards your debts and your income is
above the median for your state you will be DENIED chapter 7 eligibility and required to file chapter 13.
What’s worse is the court calculates your ability to repay your debts not based upon your actual docu-
mented living expenses but what the IRS schedules determine what your monthly living expenses
SHOULD be in your state and county. Thanks for singing this one into law, President Bush!

Once you file bankruptcy, it becomes a matter of public record. Should a prospective em-
ployer, landlord or lender want to verify the accuracy of your financial statements, they can do a simple
search of public records on the internet (they don’t even need to run a credit check!) to locate informa-
tion on your bankruptcy filing. Not to mention chapter 13 bankruptcy can stay on your credit report for
up to 10 years.

BANKRUPTCY IS NOT A “FREE LUNCH”

BUT NOT THE END OF THE WORLD!
Bankruptcy is not a “free lunch” but a very expensive one, as you can see. Still, it may be the
best solution for some consumers and there should be no shame in it. PERIOD! The top two reasons
for bankruptcy are DIVORCE and MEDICAL ILLNESS. Nobody is perfect. Not even Donald Trump!
But bankruptcy is not the end of the world. With 3-4 years of new account history, we’ve seen consum-
ers build their scores in excess of 700 points and qualify for decent interest rates. Since chapter 7 is
so much harder to qualify for, the banks may consider it less of a risk now.

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 FREQUENTLY ASKED QUESTIONS
Q. Do I have a legitimate financial hardship condition?

A. That all depends. There are personal circumstances which are sometimes hard to avoid, such as
loss of employment, medical problems, death of a family member, loss of child support payments,
divorce, or some other serious event that has caused a severe economic hardship. Make a plan, and
set a budget. Where you’ll be in 12-24 months if you stick to your plan will be night and day!

Q. Am I really committed to avoiding bankruptcy?

A. Ask yourself. If you decide to avoid bankruptcy debt negotiation can be a great alternative. Creditors
often welcome consumers with a genuine approach to debt settlement who are trying to work things
out.

Q. What amount of debt are creditors most likely to negotiate on?

A. Generally, if your debt is below $5,000, aggressive negotiation strategies will not be as simple and
effective unless you have at least $10,000 in debt. Negotiations can still be arranged but large reduc-
tions in principal are much more difficult to obtain when a consumer has lower levels of debt. A debt
level of $10,000 to $30,000 is more in the range of when a consumer might consider debt negotiation
but there is no fixed rule.

Q. What type of debt are most easily negotiated?

A. The negotiation strategies described in the Credit Secrets Bible can work well for a variety of debt,
but the types of debt easiest to negotiate are unsecured credit card debt. Department store charge
cards, financing contracts, and miscellaneous bills can also be negotiated. However, the results may
be less predictable for those type of accounts. Student loans cannot be negotiated since the IRS and
state taxing agencies can simply nab your tax refund to collect any balance due. Auto loans are tough
to get reduced since they’re secured by the vehicle but can be refinanced. Mortgages that are in
foreclosure can be negotiated, but usually with very unfavorable terms such as higher interest rates.

Q. How do I know if I have enough of a monthly budget to start the negotiation process?

A. How much of a budget do you have? Your monthly budget should be at least $200 for every $10,000
of debt. So, if you owe $30,000, you would need a monthly budget of $600 or more. And the budget you
actually need may be less than the current total of your monthly minimum payments. Since you could
back off of your monthly payments while still negotiating your debt in a responsible manner, this ap-
proach can work well for some consumers. If you take your lowest balance card, and instead of paying
it, deposit the payment into a savings account, you now have some leverage! But remember, if the
account goes over 180 days past-due it could go into charge-off status. Not good!

Q. Will the new bankruptcy laws have any affect on debt negotiation or settlement strategies?

A. No. Here’s why: The consumer still has leverage because the bank or lender does not know if the
consumer can qualify for chapter 7 (which means they get NOTHING). Even if the consumer files for
chapter 13, the creditor will still only receive an average of 25% to 50% of the total amount of the debt.
And under chapter 13, it will take the creditor FIVE YEARS to recover that amount! So a lump sum of

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25% to 50% today (or spread out over 12 months) is far better than the same amount collected over 5
years.

Q. What happens to my credit when I start the debt negotiation process?

A. Your credit score will probably go down during the negotiation process itself because the account
will show past due with the credit bureaus. How much it will decline depend on your personal circum-
stances. Your credit score should begin to improve after all your debts are settled. In addition, your
debt-to-credit ratio will improve as your debts decrease!

Q. Are there any tax requirements upon settlement?

A. Most banks feel they are required to report cancelled debts exceeding $600 to the IRS. You may
also be required to report the “gain” you enjoyed on your annual tax return. However, if you were
insolvent in the amount of $30,000 and you only enjoyed saving $25,000 by negotiation - the IRS may
allow you to “write-off” that cancelled income. In any case, consumers should contact a tax advisor or
attorney for advice specific to their situation just to be on the safe side.

Q. What if I would rather hire someone to negotiate for me?

A. There are plenty of companies out there. Just make sure they’re not “debt consolidation” compa-
nies who only negotiate your interest. If you decide to hire someone, expect to pay between 3% to 8%
of your debt as a setup fee, monthly fees, plus on average 25% of the negotiated savings. It can get
expensive. You could save yourself thousands of dollars by simply using the negotiation strategies
outlined right here in the Credit Secrets Bible! Keep in mind some banks like MBNA will not negotiate
with third parties.

COMMENTARY: “Credit Cards -- They're Just Like Cocaine”

“Credit cards are just like drugs. There is no better analogy in my opinion. If consumers use them irresponsi-
bly, they offer short term pleasure and long term pain. Many consumers get the illusion that they have more
money than they actually do. Can you relate? Then you live with less because each month a portion of your
income is picked out of your pocket paying the interest on past debt. Today the prestige of credit is extremely
high. So we use it, and use it, and use it until we literally cannot survive without the comfort of it.

Consider this fact. Creditors do not make a penny until you go into debt. Therefore, do you really think they
hope to contribute to your future wealth? Or do you think they would prefer that you use credit somewhat
irresponsibly and charge just about everything in sight? As long as you can maintain your payments, they want
you in debt just like the local drug dealer wants you addicted!

And just as you think you are smart enough to climb out of the hole you’ve dug for yourself, your friendly credit
card executives are figuring more and better ways to offer convenience to entice you to use your card even
more such as in fast food restaurants, taxi cabs, movie theatres, mortuaries and even paying your taxes!

Banks are always finding new ways to increase consumer credit card debt. Their primary goal is obviously to
increase profits. I once heard a bank executive say, "We are breaking down the barriers of debt." To me that
sounds like “We are going to get more and more people addicted to credit” just like a drug dealer would want
more and more people hooked on crack! What an amazing business...

Listen, our future is at stake here. Until we as consumers begin using credit responsibly, we will foolishly
squander our future by living in an illusionary world and “pay the price” - just like a drug addict. Those are my
2 cents. Keep the change!”

-Bob Andrews

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 The “Special Phone Number” you can call to get the
TRUTH about all those ads offering you a guaranteed
$5,000 to $10,000 Credit Card with NO CREDIT CHECK
(find out what's a rip off and what's not!)

You’ve seen all the ads out there promising you a $5,000 to $10,000 credit
card, only to find out (in most cases) you’re approved for a $300 credit card with
$280 in fees - and $20 left in available credit? Always read the fine print! In a
minute I’m going to reveal a special phone number to call that will go over all this
and more, but before I do that I want you to understand why adding primary
unsecured accounts to your credit file is such an important topic.

THE CHALLENGE IN BUILDING YOUR CREDIT SCORE

The problem is, if you’ve got bad credit, or no credit all, you may not even
qualify for a secured credit card (if you can even afford one). So, just getting one
new line of credit reported to your credit file can be extremely difficult, if not
impossible!

Without new credit being reported your file, you simply can’t raise your credit
score high enough to qualify for low-interest credit cards, or a low-interest loan to
purchase a nice car or home! So, not only is it a problem just getting a new
account reported to your credit file, but it can also cost you a fortune in the long
run in the form of higher interest rates!

WHAT BAD CREDIT WILL COST YOU IN THE LONG RUN...

Let me give you an example of how much bad credit can cost you when you
purchase a car or home. If you’re making payments on a car or home you could
be paying tens of thousands more! This added amount shows up in the form of
higher interest on your monthly payments.

Take a look at the chart below for an illustration of how much bad credit can
really cost you! If you raise your score high enough, you could literally save
yourself thousands of dollars over a 5 year period just on a car. Would it be worth
spending a little time and a few postage stamps to restore your credit to save that
kind of money? Of course it would! Just take a look...

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 Total Interest Paid On A $150,000
Home Over 30 Years!
Credit Rate Interest You Pay!

Perfect 5.5% $104,404.40

Damaged 7.5% $151,715.60
Horrible 9.5% $202,706.00

I know, it’s absolutely outrageous, but those are the rules of the “credit game.”
But wait, it gets even worse! Let’s take a quick look at how much more you’ll be
paying for a home mortgage with bad credit. The following chart will give you a
startling illustration of just how valuable good credit is in today’s economy.

Total Interest Paid On A $20,000

Car Over A 5-Year Period!
Interest
Credit Rate You Pay!

Perfect 2% $1,033.60
Damaged 10% $5,496.00
Horrible 20% $11,792.80

If you’re making payments on a home over a 30 year period, you could be

paying thousands more just for having bad credit! Don’t throw this money away
when it’s so easy to restore your credit. The main key to improving your credit is
knowing how the system works. Once you know how, things become very simple.

And the fastest way to increasing your credit score is having a new primary
account reported to the credit bureau. Adding a new account to your credit file not
only raises your “high credit limit” (as spoken of earlier), it also lowers your “debt
to credit” ratio. These are two very important factors in determining your credit
score.

And the “special number” to call is 1-801-350-3999. This is a 24 hour

recorded message so call it now!

** Message or offer subject to change without notice **

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 THE FIVE VITAL SECRETS EVERY MARRIED PERSON
MUST KNOW BEFORE APPLYING FOR CREDIT!

SECRET NUMBER ONE: According to the Federal Equal Credit Opportunity Act
(FECOA) creditors cannot deny consumers access to credit because of their sex. How-
ever, on average, in all surveys it is a known fact that women earn less money than men.
They earn less per hour, per week, per a month, per a year and less over the span of their
lifetimes. Regardless of what the FECOA states, the relationship of credit to income is
very strong. In our society if you make less money you will get less credit, period. The
sad FACT is that women (on their own) have less access to credit. It is for this reason it
becomes essential that women know more about credit than men...

SECRET NUMBER TWO: If you are a married woman with JOINT credit (meaning
all your credit accounts are jointly held with your husband) you have NO CREDIT
yourself. Many women in America find this out the hard way every year when they get
divorced and lose all their credit privileges since they were jointly held with their hus-
bands. If you are a women in this position it is strongly suggested that you begin
building your OWN CREDIT in your OWN NAME.

The benefits are twofold. 1) If your husband has financial difficulties (for any reason)
and is forced to file bankruptcy or his credit becomes derogatory, you and your husband
will have YOUR CREDIT in reserve to survive on. 2) If you ever get divorced down
the road (over 50% do) you will NOT end up in financial hardship due to NO CREDIT
and/or derogatory credit. Instead, you will have your OWN CREDIT to transition to
and this can be the difference between smooth sailing or drowning in the storm.

SECRET NUMBER THREE: If you are currently married (with some credit or no
credit) to a husband who has excellent credit, you can leverage his credit with the “Pig-
gyback Method” to build credit in your own name much faster than if you had to build
it all by yourself. Later, once you have established enough accounts on your own, you
cancel your accounts that were held jointly with him.

SECRET NUMBER FOUR: If you are a single man or woman with excellent credit
and are getting married you may want to think twice about adding your new lover to all
your credit accounts. If he/she messes up or you end up getting divorced down the road
(over 50% do) your credit will end up taking the beating, regardless of how many years
you diligently spent building it up.

We strongly suggest that married couples keep their credit SEPARATE!

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In most cases, they have far more to lose than to gain. Naturally, some credit will
have to be joint no matter what you do. If you purchase a home (which a large home
which may require both your incomes to qualify) this account on the credit report will be
joint. However, the potential abuse with a home mortgage is a lot lower than with Credit
Cards.

SECRET NUMBER FIVE: Married people have more to gain by each building strong
individual credit reports rather than joining all accounts and building one joint report.
Banks and credit card companies absolutely love the ignorance of married couples join-
ing all their credit accounts.

Here’s why: If you take 1 million couples with credit before they got married, those 1
million couples actually represented 2 million credit reports or CREDIT LIABILITIES.
When those couples got married, those 2 million credit liabilities CUT IN HALF to just
1 million credit liabilities. For banks it work outs GREAT! For couples getting married
the deal is a little raw. If they have trouble, although they are 2 people, they are repre-
sented by only 1 credit report.

In the same scenario, smart couples who get married, but each build individual credit
reports, have not one credit report representing them but 2. This is the difference be-
tween being in the ocean with one boat versus two. If the one boat starts sinking, you
have a second boat to “jump ship” to!

We cannot tell you how many times we talk to loving married couples
in financial trouble who only WISHED they would have known
about this strategy before the tidal wave rolled in...

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 THE “PYRAMID METHOD” TO AAA-
CREDIT IN LESS THAN 45 DAYS!
What I'm about to share with you is one of the most amazing techniques I have ever
discovered and personally used. You know that I am against debt. I feel that it has done a
tremendous amount to damage the well being of our society because it has gotten out of
control. I do have to admit that there is also a good side to credit as well. Credit can
do a tremendous amount to grow a business and create many jobs for hard working and
ambitious people WHEN IT IS USED PROPERLY. Unfortunately, the majority of the time,
credit in the hands of most consumers is NOT used properly.

The only time I can personally agree with the use of credit is when it's for the purpose
of starting or expanding a business with a solid plan behind it. It is for this reason that I have
decided to include this section for you. The following technique can get a persons credit
profile off to a real fast start. I know this because I speak here from experience based on
fact and NOT theory. This method is, however, subject to change!

This method is known as “Pyramiding” or "Piggybacking." This technique will allow

you to build a very substantial credit profile in a very short period of time. This is accom-
plished by becoming an “authorized user” of someone elses credit card. This can piggy-
back or add an already existing and established credit card account onto your credit file. For
this technique to work you, will need someone with an excellent credit history (preferably a
close friend or relative) to add you as authorized user (a.k.a. “guarantor”). Your guarantor
can convert a present credit account into a joint account by adding your name as a second-
ary cardholder. Your guarantor can also eventually co-sign for you to get a credit account
on your own which will be a joint account between you and your guarantor.

Let your guarantor know that you will NOT be charging any purchases on ANY of the
accounts they assist you in obtaining. Let them know they may request that their bank mail
your card directly to them. You will only be using their excellent credit history to help you
establish a solid foundation so you can begin applying for credit on your own at a much
faster pace. This will be possible because as they add you to their credit accounts and also
co-sign for an account of your own, part of their excellent credit history can piggyback onto
your credit file. It is absolutely amazing and you must see it to believe it. Once you have
established a guarantor, do the following:

1.) Have them contact as many of their credit accounts as possible and request a secondary
card in your name. Have the guarantor indicate to the bank that they would like the card
mailed to the guarantor and make sure the guarantors address will not report to your credit

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file. This could cause great confusion trying to check your credit when it appears your
address has changed!

IMPORTANT NOTE: Since some creditors will issue secondary cards without con-
sidering or looking at the secondary cardholder’s credit history, you will want to avoid
these types of credit card companies since they will not build your credit. These cards
only use the primary cardholder’s credit history. Additional cards issued, even if in a
spouses name, remain on the primary cardholder’s credit profile and their sole re-
sponsibility. The rule of thumb is if the application asks for the secondary cardholder
S.S.N., it WILL "piggyback" onto the secondary cardholder’s credit history.

2.) About 60 days after you’re added as a secondary cardholder, you’ll want to check your
credit report to see that the account has posted to your credit file. Although you will be a
secondary cardholder on the account, they should appear on your credit report. Once these
accounts appear, you will then want to apply for credit in your name (as a primary card-
holder), with your guarantor co-signing for you or acting as a co-applicant (do not confuse
this with a secondary cardholder).

3.) About 60 days after you receive a card in your name, with your guarantor, make sure
your debt-to-credit ratio is between 10% to 30% and you have removed as many derogatory
items from your report as possible. This is critical in “dressing your profile” and attracting
new lenders.

IMPORTANT: Tips To Remember When Using This Technique!

1.) Always remember that when building your credit report you want to minimize the num-
ber of inquiries and maximize the number of approved accounts posted to your file. This
means you want to apply for credit only when you feel 95% sure that you will be approved.
When it comes to your credit report, inquiries are NOT your friend.

2.) Since you only want to apply for credit when you feel 95% sure you will be approved,
the best applications to apply with are those that are sent to you in the mail pre-approved
(don’t be fooled by “pre-selected” offers). If you begin having multiple accounts posted
to your file, you should begin receiving pre-approved applications.

3.) Realize that all banks use a scoring system to rate you based on the information you
provide them when applying for credit. For example: Pre-approved applications are the
highest scoring form of applications to apply with. On the contrary, do NOT ever write
to a bank or "pick up" their brochure and send it in. As this is one of the lowest forms
of application a bank looks on.

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4.) Whenever applying for credit, you may choose to do it in person at the store or over
the phone as opposed to applying by mail, as some people feel this may be to one’s
advantage.

5.) Since banks rate you on a scoring system, this means you will want to have as many
points as possible. Beyond your high credit limit and debt-to-credit ratio, points are
established and determined in the following areas:

A.) PAYMENT HISTORY: Accounts with more than 3 years of payment history are
best. A long payment history with no late pays shows responsibility and stability!

B.) ADDRESS: Time at current address and whether it is a Post Office Box or a street
address. Street address scores higher than a P.O. Box and the longer you have been at
the address the better. 5 years plus will usually score the highest. More years = More
score! A street address is best!

C.) EMPLOYMENT: Executive/professional work will score the highest with skilled
labor being in the middle and blue collar and all others scoring the lowest. The longer
you've been at the job, the better. 10 years plus will usually score the highest with 1 to 3
years being in the middle.

D.) TELEPHONE: Generally speaking, a telephone number being listed in the appli-
cants name will add a few points. Residential Phone listed in the consumers name will
score highest! Avoid cell phones and Voice Mail numbers on credit reports whenever
possible!
E.) RENT/MORTGAGE: Having a mortgage will score higher than renting as it shows
stability and previous repayment habits/credit. Depending upon your income and area
of residence in the country, monthly obligations (rent or mortgage) of under $550 will
score higher than monthly obligations over $550.

F.) CHECKING/SAVINGS ACCOUNTS: Having a checking AND savings account

will score higher than just a checking account alone. Having no accounts will obvi-
ously score the lowest. Whenever you fill out a credit application make sure you have a
checking and savings account and that you check “yes” off on the application.

G.) DEPENDENTS: Zero dependents will score the lowest. 3 dependents will score
the highest and 4 dependents will score in the middle.

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 FREQUENTLY ASKED QUESTIONS
Q. What if I can’t find anyone that’s willing to add me as an authorized user?

A. There are private companies that sell or broker authorized user accounts (a.k.a. “seasoned
tradelines). However, these accounts only report temporarily. In addition, the account is from a com-
plete stranger. For this reason alone, we do not recommend purchasing these type of services from
private companies. In addition, the reporting of these accounts is subject to change by the creditors.

Q. I’ve found someone to add me to one of their credit card accounts, but how do I know the
company will report to the credit bureaus?

A. This is an important topic. Many companies DO NOT report authorized user accounts to the credit
bureaus. First, ask the company. If they say they report, ask what information they’ll need. If they don’t
need a Social Security number, then they don’t report unless the account goes into default. Move on to
another card! Keep in mind, some cards require authorized users to be permanent. In other words,
the only way to remove the new user is to cancel the card! This may not be a favorable situation for
either party.

Q. Is there less benefit from a temporary authorized user account?

A. Not really. And this is also a big selling point to a friend, family member, or business associate!
Let’s say a consumer gets a credit card piggybacked for 90 days. When the primary cardholder calls
their bank to cancel the secondary cardholder, the account gets reported as “closed by consumer.”
This usually does not hurt a consumer’s credit score. The consumer still keeps ALL the history that the
primary cardholder had at the time of closure. They just don’t pick up any additional history.

Q. If I built my credit score up high, could I actually make money doing this for others?

A. Possibly. Some credit cards actually allow up to 20 authorized users! When the secondary
cardholder’s authorization gets cancelled, the consumer could then resell the “slot” to someone else.
Keep in mind, banks know this, which is why it’s extremely difficult to find credit card companies that
will allow multiple authorized users, and report their account to the credit bureaus.

Q. You mentioned something about once I get my credit score higher I could have a loan co-
signed? Can you go into more detail on that?

A. Yes. After getting a few authorized user accounts reported, consumers usually wait until there
score reaches 650 or higher. At that point, they can have a friend, family member, or business associ-
ate co-sign a loan or credit card. In this case, the primary account holder IS the consumer. At a later
point in time, depending on the criteria of the lender, the co-signer can be removed.

Q. What’s the best way to persuade someone to do this for me?

A. The consumer approaches the person and says, “Bob. I am building my credit from scratch and I
need more of a credit history. Would you be willing to do me a favor? Would you add me to one of your
credit cards so I can pick up your history on the account? Just have your bank mail the card to you so
there are no worries of any liability on your part. All I need is just a couple of months. Either way, I pick
up your history. Would you be willing to help? [Sure.] Great, I appreciate that!”

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 HOW TO GET A CHECKING ACCOUNT IN 48 HOURS...
EVEN IF YOU’VE BEEN REPORTED TO CHEXSYSTEMS!
If you’re currently having trouble getting a checking account because you’ve been
reported to ChexSystems, you may have more options than you think. Here are a few
examples of some of the options you may have:

1. Find a bank that doesn’t use ChexSystems. Many financial institutions use Chex-
Systems to screen new customers, but some - like credit unions and small banks... Don’t.
It’s worth the effort to find a bank that doesn’t use ChexSystems. The advantages of
credit unions are: 1) If a family member qualifies for an account, so does the immediate
family, 2) once you become a member, you can keep your membership for life, and 3)
credit unions are more likely to grant a savings-only account regardless of your Chex-
Systems record.

2) Open a savings account. A savings account will give you additional banking op-
tions, such as PayPal for online transactions

6) Request off-line verification. If you ask the bank to do an off-line verification, their
search will be more specific and will keep your name from being confused with similar
names. If you suspect that you’ve been reported to ChexSystems because someone was
using your name, you could be a victim of identity theft.

7) Amend your ChexSystems report. Once you get a copy of your ChexSystems
report, make sure that each “banking institution incidents” includes a statement that reads:
“all amounts owed have been paid.” This statement should be filed by your bank after the
initial report to say you no longer owe money. ChexSystems asks banks to do this, but
few ever do. The benefit: certain banks will consider your application if they see “all
amounts owed have been paid.”

8) Dispute the incident with the bank. Ask the bank that reported you to file a “delete
record” request with ChexSystems, especially if you have paid the closed accounts in
full. You might have to talk to several representatives at the bank, but be persistent. It is
within your rights to have your ChexSystems report amended with “all amounts owed
have been paid,” or deleted completely.

9) Dispute the incident directly with ChexSystems. If your ChexSystems report is

incorrect, send a signed letter to ChexSystems disputing any inaccurate information.
Inaccurate information could be as simple as a misspelling (i.e., of your name) or an
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incorrect date or amount. After you send your letter, ChexSystems is required to verify
your records with the reporting bank. If the bank takes more than 30 days to reply,
ChexSystems is required to remove the incident from your report until the bank re-
sponds. Normally, ChexSystems will provide you the outcome of your dispute within 30
days. If the bank responded, ChexSystems’ results should include the name, address and
phone number of the bank who verified your incident (sample letter are provided at the
end of this section).

10) Use changes in your personal information to your advantage. When you apply
for a bank account, the bank provides your information to ChexSystems. This informa-
tion includes your name, address, social security number (SSN), and often prior ad-
dresses, your driver’s license number and date of birth. Here’s what you should remem-
ber: Identifying information changes over time. For example, your address might have
changed, you might have a new driver’s license, or your name changed after marriage.
In each case, the difference between the new information and ChexSystems’ record can
work to your advantage in accidentally creating a new Chexsystems bank credit file.

11) Do not provide previous addresses. Many incidents reported to ChexSystems do

not include a full social security number. This forces banks to verify your name and
address instead. Generally, only incidents from the state where you live will be considered
from this search. For this reason, when you complete your bank application, be sure not
to volunteer prior addresses if at all possible.

14) Request the bank’s filing guidelines. Ask for your bank’s ChexSystems reporting
guidelines in writing. ChexSystems doesn’t tell banks how and when they should report
an account holder. It’s up to the bank to determine this. Fortunately, the FCRA demands
“reasonable procedures” when reporting data to credit bureaus. If the bank doesn’t have
filing guidelines, they cannot prove they followed “reasonable procedures” when re-
porting you to ChexSystems. In these cases, it’s easier for the bank to have your file
removed from ChexSystems than to deal with a legal dispute.

15) Investigate ChexSystems. Most states require that companies register with the
Secretary of State before doing business. ChexSystems often forgets to do this, which
you can use to your advantage. Send a letter to the bank informing them of ChexSystems’
failure to comply with state law, and send copies sent to ChexSystems and to the state’s
Attorney General.

This could be all it takes to have your ChexSystems record deleted.

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 SAMPLE CHEXSYSTEMS DISPUTE OF
ANY NON-ACCURATE ITEM

Note: Be sure to enclose photocopies of any and all evidence that can help support your dis-
pute. DO NOT send any original documents, photocopies only.

Your full name

Your address
City, State Zip Code

Date

Your social security number

ChexSystems
Customer Relations
12005 Ford Road Suite 600
Dallas, TX 75234

Dear ChexSystems:

I have received a copy of my ChexSystems report, and I am writing to notify you that the
following information is incorrect:

Bank Name
Date

[Indicate: wrong amount, wrong date, this is not your credit line, you do not have a credit
listing with this bank, this account was paid off, the dates are wrong, or other reasons you
would like this listing verified.]

[Itemize: each correction using the same format]

Based on this, please delete this information and send written confirmation that you have done
so to the address above.

Thank you for your assistance.

Sincerely,

Your full name signed here

Your printed full name here

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 SAMPLE CHEXSYSTEMS DISPUTE FOR
30-DAY TIME EXPIRED
Note: Be sure to enclose photocopies of any and all evidence that can help support your dis-
pute, such as the registered letter confirmation receipt from your first letter. DO NOT send any
original documents, photocopies only.

Your full name

Your address
City, State Zip Code

Date

Your social security number

ChexSystems
Customer Relations
12005 Ford Road Suite 600
Dallas, TX 75234

Dear ChexSystems:

In a letter dated [Insert: date of first letter], I requested that you correct the following infor-
mation in my ChexSystems report:

[List: errors indicated in first letter]

To date, I have not received confirmation that you have done so.

As 30 days have now passed, this letter is my formal demand to be removed from the ChexSys-
tems database. Please note that your failure to do so violates the Fair Credit Reporting Act.

Please immediately send confirmation of the deletion to the address above.

If I do not hear from you within ten business days, I am prepared to take legal action to remedy
the situation.

Thank you for your assistance.

Sincerely,

Your full name signed here

Your printed full name here

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 SAMPLE CHEXSYSTEMS 15 DAY
METHOD OF VERIFICATION REQUEST
Note: Be sure to enclose photocopies of any and all evidence that can help support your dis-
pute, such as the registered letter confirmation receipt from your first letter. DO NOT send any
original documents, photocopies only.

Your full name

Your address
City, State Zip Code

ChexSystems
Customer Relations
12005 Ford Road Suite 600
Dallas, TX 75234

Date

RE: Consumer ID # [your consumer ID # here]

Dear Consumer Relations Dept.:

I am writing in response to your claim that [Name of Bank] has confirmed my unpaid debt.
Please note that you have again failed to provide me a copy of the evidence submitted to you
by this bank.

I request that you provide me a description of the procedure you used to determine the accu-
racy and completeness of the bank’s information. Please send this information to me within
fifteen (15) days of the completion of your reinvestigation. In addition, please provide the
name, address, and telephone number of each person you contacted at [Name of Bank]
regarding my alleged account.

I also request a copy of any documents submitted to you by [Name of Bank] which bear my
signature and show that I have a legally binding contractual obligation to pay them.

Be aware that this is my final goodwill attempt to have this matter resolved. As it now stands,
the information you have presented to me is inaccurate and incomplete and represents a seri-
ous error in your reporting.

It is my understanding that your continued failure to comply with federal regulations can be
investigated by the Federal Trade Commission (see 15 USC Section 41). For this reason, I am
maintaining a careful record of my communications with you should I need to file a complaint
with the FTC and the state of [your state] Attorney General’s office.

If you do not respond within 10 business days, I am prepared to take legal action against your
company for causes of action including, but not limited to, defamation, fraud and violations
under the Fair Credit Reporting Act.

Sincerely,

Your Name (printed or typed, not signed)

Your social security number

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 SAMPLE DISPUTE TO THE
FURNISHER OF INFORMATION
Instructions: Complete and mail this form by certified letter to the bank that has reported you
to ChexSystems.

Note: Be sure to enclose photocopies of any and all evidence that can help support your dis-
pute, such as the registered letter confirmation receipt from Form 1. DO NOT send any original
documents, photocopies only.

Your full name

Your address
City, State Zip Code

Name and Address of original bank

Date

RE: Acct # [insert your account number here]

To Whom It May Concern:

I am writing regarding the unpaid debt on account # [insert your account number here],
which I dispute.

According to the Fair Debt Collection Practices Act, I am requesting “validation,” or competent
evidence that bears my signature and shows I have some contractual obligation to pay you.

Please be aware that any negative mark on my credit report (which includes ChexSystems
credit report) for a debt I don’t owe is in violation of the Fair Credit Reporting Act (FCRA).
Therefore, if you cannot validate the debt, you must request that all credit reporting agencies
delete the entry. In addition, until I have received and reviewed any evidence you provide me, I
ask that you take no action that might damage my credit reports.

If the debt described above has been resolved, I ask that you remove, or have removed, any
derogatory marks from my credit reports per the FCRA and send me confirmation that you have
done so.

Please note that if you fail to respond within 30 days of receipt of this certified letter, I am
prepared to take legal action against your company for causes of action including, but not
limited to, defamation, fraud and violations under the Fair Credit Reporting Act.

By sending this letter, I am disputing both the validity of the alleged debt and the validity of
your claims. This is my attempt to correct your records. Please be aware that any information I
receive from you will be collected as evidence should any further action be necessary.

Best regards,

Your full name signed here

Your printed full name here

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 How To Buy Your Dream Home With
NO Income Verification, NO Asset Verification
With As Little As 5% Down!
The main key to purchasing your dream home with no income or asset verification and
as little as 5% down (plus closing costs) is - as you’ve probably guessed - your credit score! As
you probably know, your credit score (which ranges from 300 to 850) is used by lenders to help
them decide if you’re a good financial risk. The higher your score, the better! In previous
pages we discussed the fact that...

Increasing Your Credit Score By a Mere 40 Points

- And Lowering Your Interest Rate By 2% -
Can Save You Over $100,000 on a 30 year Mortgage!

In addition, the higher your score the less you may have to put down as a down
payment. For example, if your score is between 500 and 619, you will typically have to put as
much as 30% down. That’s a large chunk of cash! However, if your score is between 620 and
699 your down payment could be much lower - even as low as 5% depending on your debt to
credit ratio (and other mitigating factors).

HOW TO BUY A HOME THROUGH A

“DEPOSIT LOAN PROGRAM”!

Consumers with a score of 620 to 699 typically do what are known as “SIVA” loans:
“Stated Income Verified Asset.” They state their income, and must verify they have some type
of asset (savings or retirement account, “CD” or certified deposit, annuity, etc.). Consumers
who don’t have any (or enough) reserve assets can use one “little known” method called
a Deposit Loan Program.

Here’s it works: A bank associated with the Deposit Loan Program deposits $25,000
(or more, for example) into a bank account under your name and social security number (or
employer identification number if the loan is for business purposes). The account is deposit
only; therefore you cannot withdraw any of the funds.

In this case, the only purpose for the account is to make it appear as though you have
some type of asset the bank can verify. The borrower simply lists the bank account on their
loan application, and the lender contacts the bank and requests a “verification of de-
posit” (VOD). Once the VOD is received, the problem of having no reserve assets is solved! In
addition, if the lender requires the VOD to be “seasoned” (aged a number of months) or “sourced”
(closing costs paid through the account), these things can also be handled for a nominal fee.
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 Deposit loan programs typically charge a monthly interest rate (that’s where they make
their money). Let’s say they charge 1% interest on the $25,000 loan example above. That
would be $250 a month. And let’s say the minimum term for the loan is 3 months. So, your
total interest payments are only $750. There simply is no other resource we know of where you
can spend less than a thousand dollars and have a $25,000 account reported to the credit bu-
reaus!

But another incredible feature is...

Once You Make Your First Payment The Account Reports to the
Major Credit Bureaus as a Current Installment Loan!

HOW TO BUILD YOUR CREDIT SCORE QUICKLY

WITH DEPOSIT LOAN PROGRAMS!

Deposit loans are an excellent tool to build your credit quickly! Upon your final payment
to the bank (which in the example before would be the third month) the account gets reported to
the major credit bureaus as a PAID installment loan of $25,000. We have numerous clients
who have shot their credit scores “through the roof” using a Deposit Loan Program.

One clients score in particular went up 80 points in less than 45 days! He hadn’t even
finished his 3 month term, closed the account, and returned the $25,000 as payment on the loan.
Keep in mind, these loans can go all the way up to $15 MILLION (if you’ve got the budget for
the interest payments!)

HOW TO BUY A HOME WITH

NO INCOME AND NO ASSET VERIFICATION
WITH AS LITTLE AS 5% DOWN!

To qualify for this type of loan you first must build your credit score to 700 or above.
When your score is 700 or above, you can qualify for what’s known as a “NINA” loan: “No
Income No Asset Verification.” It’s these types of loans where you can qualify for as little
as 5% down (plus closing costs). Of course, there are other factors outside your credit score
which can affect your eligibility for NINA (a.k.a “no doc”) loans and your interest rate.

Again, we have countless clients who have gotten “no doc” loans using the insider tech-
niques outlined here in the Credit Secrets Bible!

For more information on Deposit Loans, please visit http://www.try.tc

 Testimony

Before

Subcommittee on Financial Institutions And Consumer Credit

of the

COMMITTEE ON FINANCIAL SERVICES

Regarding

"Fair Credit Reporting Act: How it Functions for Consumers and the Economy"

June 4, 2003

Submitted by: Leonard A. Bennett

Leonard A. Bennett, P.C.
12515 Warwick Boulevard
Newport News, Virginia
(757) 930-3660
(757) 930-3662 (fax)
email: lenbennett@cox.net

on behalf of

National Association of Consumer Advocates

1730 Rhode Island Ave., NW, Suite 805
Washington, DC 20036
202-452-1939
202-452-0099 (fax)

113
 Chairman Bachus, Congressman Sanders and other distinguished members of the

Financial Services Committee, the National Association of Consumer Advocates (NACA) thanks
you for inviting us to testify today in this early stage of considering changes to the Federal Fair
Credit Reporting Act.

My name is Leonard A. Bennett. I have been asked to appear before you on behalf of
NACA, its 850 plus members and the tens of thousands of consumers who we represent or on
whose behalf we litigate. I am a consumer protection attorney. I have practiced law in Virginia
since 1994, and in North Carolina since 1995. I obtained my undergraduate degree in Finance
from George Mason University and my law degree from the George Mason University School of
Law and Economics. I have been asked to represent NACA today because of my litigation
experience. More than anything else, my practice is focused on the private enforcement of the
FCRA.

I have had the opportunity to review the prepared statements of the sub-committee’s
witnesses from your May 8th hearing. I expect that you will have heard more of the same today.
The position of both the financial services industry and the credit bureaus is essentially the same
- the FCRA system is perfect and you should not allow preemption to expire. The reality is far
from these mis-truths. The Credit Reporting system remains seriously flawed and under present
trends will only get worse. And the fear of the preemption sunset is blown out of proportion and
would not jeopardize what national standards the FCRA has established.

Unlike some consumer protection statutes, the FCRA is not targeted to protect any
particular group of Americans. It protects all of us. Wealthy and those of modest means alike.
Husband and wife. Father and Son. It protects those of us in the South as much as those of you
from any other region. I practice primarily in Hampton Roads, Virginia. As a result, I have had
the privilege to represent countless members of the United States Armed Forces. I represented
several consumers in pending cases while they proudly served our country in Iraq. And whether
an enlisted or an officer, the law protects each the same. The FCRA’s protections do not know
party line or ideology. It is a unique statute for a unique problem. The law must protect our
privacy. It should help maintain the security of our information. It could help expand a
frictionless economy. And ideally it would better guarantee that those who have earned good
credit are able to keep the fruits of their efforts and responsibility.

2
 Beyond the importance of the FCRA to consumers, you must also consider its benefits to
our economy and American business. In its original adoption of the FCRA, Congress found that
“the banking system is dependent upon fair and accurate credit reporting. Inaccurate credit
reports directly impair the efficiency of the banking system, and unfair credit reporting methods
undermine the public confidence which is essential to the continued functioning of the banking
system.” 15 U.S.C. Section 1681(a)(1). In considering the 1996 Amendments to the Act,
Representative Kennedy explained, "[i]f these reports are not accurate, or if they are distributed
without a legitimate purpose, then our whole society suffers. Consumers may be unfairly
deprived of credit, employment, and their privacy. And businesses may lose out on the
opportunity to gain new customers." 140 Cong. Rec. H9809, September 27, 1994. These
insights are still true today. Accurate information is critical for a functioning economy. I am a
believer in the free market system. The more accurate the information, the better the decisions
made by our economy’s actors. One of the principals I was taught in my undergraduate years
studying the stock and investment markets is a concept titled “the efficient market hypothesis.”
The idea is that the investment markets will be fluid and frictionless only if perfect and equal
information is available to all market participants. The same may be said for the consumer credit
markets. Businesses need more accurate and complete information with which to make better
lending decisions. Whether for the financing of an automobile, a home, or a department store
purchase, sellers and lenders need access to accurate credit information so that they may transact
business safely and with lower risk. These include large consumer lenders such as the credit
card industry or mortgage lenders. But, it also includes more modest-sized businesses without
the large margins for error available to institutional creditors. Credit file inaccuracies are
damaging to businesses in both directions. Inaccurate credit reports may misstate the quality of a
consumer’s credit in a manner which could cause a potential seller or lender to inappropriately
extend credit. The rise in consumer bankruptcies is one of the results of this false positive. On
the other side of the coin, inaccurate derogatory information will keep businesses from selling
and financing goods and services to consumers with otherwise excellent credit. The growing
flaws in the credit system are endangering American businesses in both ways. Credit risks are
inappropriately getting credit, while responsible consumers are often saddled with inaccurate
derogatory histories that keep them from doing the same. The irony of the credit industry’s
opposition to FCRA improvement is the fact that the industry stands to gain as much as any other

3
participant in this debate.

You have heard or will hear from countless witnesses all who express the policy view of
their respective organizations or trade groups. Few if any of your witnesses will have any live
experience actually using or enforcing the statute. Throughout the history of the consumer credit
laws, attorneys such as myself have been titled “private attorneys general” by courts and
commentators. It is our role to bring private enforcement actions to ensure compliance with laws
such as the FCRA. Without these efforts, the FTC would need an army of regulators to perform
the function - a possibility an advocate of limited government such as myself could not accept.
You have now met one of the individuals who actually goes into federal court to implement the
laws that you enact. I and other members of NACA see the flaws in the FCRA firsthand. We
face the walls and obstacles placed in the way of full enforcement by the credit bureaus and their
army of lawyers. We face the limitations and restrictions of the FCRA on a daily basis. I would
like to take this opportunity to better inform the sub-committee on the mechanics of the FCRA
system and some of the flaws within it.

Most of my litigation experience arose from claims of credit file inaccuracy. There are
countless ways in which my clients’ credit reports have been inaccurate. Often, my client’s
credit files were combined - partially or entirely - with those of another person. This may
happen through the criminal acts of a third-party. I am involved in a Michigan case in which an
identity thief discovered that our client, with a social security number off by one digit, had better
credit. So she began to apply for credit using our client’s social. Within no time, the credit files
at the bureaus began to show a single identity with the thief’s name as our client’s alias. Despite
multiple investigation demands, nothing was done about the problem or to keep it from
recurring. She has been forced to sue. These cases are identity thefts and they have received the
greatest notoriety. Unfortunately, they are far from the exception. The industry describes ID
Theft as a criminal law problem. But the only reason that identity theft is so prevalent and so
easy to accomplish is because of the lack of any industry safeguards to stop it.

As common in my case portfolio are those claims we describe as “merged identity” cases.
As easy as it is for an identity thief’s credit files to be combined with that of an innocent
consumer, it is even more likely to happen to persons of similar name and address or social
security number. The credit reporting industry is now almost entirely automated. Its file

4
searches do not require full identifying information - either to obtain a credit report or to furnish
information to the bureau. As a result, I have been asked to help Sandra K. Brown, who had
perfect credit, when Equifax could not keep the files of Sandra M. Brown from merging. And
Mary E. Jones and Mary W. Jones, who because of their similar names and addresses had both of
their identities combined by Trans Union. Or Teresa B. Davis, who lived on the same street as
had Teresa G. Davis several years prior and had much better credit before Equifax merged the
two files. These are my cases, solely out of Newport News and Hampton, Virginia. But, there is
nothing about this problem which is unique to my community. It is happening everywhere
throughout America. And while no one consumer is truly immune from it, the problem is much
worse for consumers with common surnames, particularly those who share their name with
multiple generations.

I also see a large number of pure inaccuracy cases - those in which an individual item
within a credit report is inaccurate. These types of problems, though lacking the glamour and
intrigue of an identity theft, are far more common and just as damaging. The Consumer
Federation of America study, already made a part of the sub-committee’s record by
Representative Hinojosa on May 8, found that 1 in 10 credit scores were inaccurate. This is
because of inaccurate information within the credit files used to calculate such scores. At the
present, there are far more FCRA cases in my community than I can accept and litigate. Some
examples which repeat again and again include Mr. Jeffreys who refinanced his Bank of
America mortgage in early 2002. Within his credit report the creditor and bureaus continue to
report the account as a charge off and pending foreclosure with a full balance. This is despite the
fact that he has mailed to all parties a copy of the original note marked paid in full by the
creditor, a letter from the Bank stating as much, and a letter from his real estate attorney. Or
Linda Johnson, whose ex-husband filed bankruptcy on a credit card for which she was never
responsible. When he filed bankruptcy, MBNA added Ms. Johnson as a cardholder and would
not remove the account from her credit files until it was sued. These are only examples and they
are far more typical of these problems than not.

The FCRA, as amended, includes a system of reinvestigation which Congress had hoped
could provide a remedy by which consumers could obtain a correction of an inaccuracy within
their credit files. Unfortunately, the system does not work. Of all of the provisions within the
Act, no other is more fatally flawed than the investigation requirement. Let me first explain the

5
real world mechanics of the system.

When a consumer discovers an inaccuracy within his or her credit report, they may
initiate a dispute in one of two ways - by contacting the furnisher directly or by contacting the
credit reporting agency. If the consumer contacts the furnisher directly, he does so at his own
peril. Despite the 1996 amendments, the FCRA has left the furnisher largely immune from
effective oversight. Without a private cause of action, the broad and admirable accuracy
standards of Section 1681s-2(a) are merely aspirational. The only furnisher liability under the
FCRA is under Section 1681s-2(b) and this is only triggered through a contact from the credit
reporting agencies. No FCRA case has survived even the earliest stages of litigation without the
consumer establishing that the dispute was initiated through the bureaus.

Approximately 80% of all consumer disputes received by the credit reporting agencies
are made in writing. The remaining 20% come in by telephone. Each agency has a different
process for handling these disputes, but all three use a similar system. The three bureaus
collaborated through their trade organization to automate the entire reinvestigation process using
an online computer program, E-Oscar. Upon receiving a written dispute, often in the form of a
detailed letter with documents attached, the CRA assigns the dispute to its dispute department.
The employees within the department are usually hourly employees and are minimally paid. In
the case of Equifax, things are even worse. The CRA contracts out its FCRA responsibilities to
a foreign company based in Jamaica which uses only foreign labor for its “investigations.” The
job of a CRA dispute department employee, even if titled “investigator,” is solely data entry. No
matter how detailed the written dispute, the CRA will merely translate it into a two digit code
and, usually by automated means (ACDV), send a message to the furnisher identifying the code
its employee believes best describes the dispute. The employees of all three CRAs operate under
a quota system whereby each employee is expected to process all of the disputes of an individual
consumer in less than four minutes. Worse still, the “codes” used by both the CRAs and their
subscribers (the furnishers) are limited in number and rarely describe the actual basis for the
consumer’s dispute. For example, in two of my recent cases, both identical, consumers Van
Evans and Ray Bailey wrote dispute letters to all three bureaus. The disputes were conveyed in
great detail and explained that the consumers were not responsible for the disputed accounts and
that any signatures claimed to be theirs were forgeries. Each consumer dispute letter also
enclosed copies of handwriting exemplars such as signatures on driver’s license, military ids and

6
other credit cards. Van Evans had also obtained a copy of the forged note and included it in his
dispute letter. When Equifax and Trans Union received the letters, their employees simplified
the disputes to a code and the description “not his/hers.” This was all the furnishers received. In
a deposition taken in a Pennsylvania case, Trans Union’s responsible employee explained the
CRA’s “investigation procedure.”

Q . . . [T]he dispute investigator looks

9 at the consumer's written dispute and then
10 reduces that to a code that gets transmitted
11 to the furnisher?
12 A. Yes.
13 Q. Does the furnisher ever see the
14 consumer's written dispute?
15 A. No.
. . .
Q. Are there any instances in which the
22 dispute investigator would call the consumer
23 to find out more about the dispute?
24 A. No.

This is consistent with CRA testimony in every other case of which I am aware. The
Bureaus do not convey the full dispute or forward any of the documents to the furnishers. As an
expected result, nearly all consumer disputes are verified against the consumers.

However, while the CRAs are the cause of many of the FCRA problems, they are not
solely responsible. Despite the 1996 Amendments, the furnishers continue to neglect or ignore
their role in the credit reporting system. It is not an unfair characterization to describe the
investigation process as a shell game wherein the CRAs and furnishers have worked in concert to
protect one another from their already minimal liabilities under the FCRA. In nearly every case
against a credit reporting agency in which I have been involved, the bureau has asserted as its
defense the fact that the furnisher verified and re-reported the inaccurate information. Contrary
to the plain language of the FCRA and the unanimous judgment of the federal judiciary, the
CRAs do not believe they have any duty under the FCRA to independently evaluate the
documents and disputes before them. Rather, they continue to assert the position that their only
duty in conducting an investigation is to confirm that the furnisher wishes to maintain the

7
disputed item. The CRAs continue to blindly mirror whatever the furnishers provide. In its
deposition, Trans Union brazenly admitted this fact on the record.

21 Q. What happens when a dispute

22 investigator gets some type of documentation,
23 other than the consumer's dispute, that comes
24 from a third party, but doesn't come from the
1 furnisher?
2 A. We wouldn't be able to act on any
3 instructions or anything in there.
4 They're not the furnisher of
5 the information.

Trans Union’s policy is identical to that of Equifax and Experian. The CRAs simply
parrot whatever they receive from the furnisher. At the same time, the furnishers are relying
heavily on the fact that there is no private cause of action under Section 1681s-2(a) and no
standard for the furnisher investigation under Section 1681s-2(b). Nearly all institutional
furnishers have the same procedures. On January 21, 2003, I represented a consumer in a jury
trial against a furnisher in a Richmond federal court. In Johnson v. MBNA, we obtained the first
plaintiff’s verdict in the country under 15 U.S.C. Section 1681s-2(b). In pre-trial depositions and
in evidence at trial, MBNA admitted that its sole procedure for handling consumer disputes
under the FCRA was to compare the CRA data to its own summary of the account in its
computer. That itself was the subject of the consumer’s dispute. MBNA’s 12 “investigators”
were expected to perform an average of 250 investigations per eight hour day. They were never
to consult original documents and were not provided any means by which to determine if the
account summary within their computer was in fact accurate. Throughout the litigation of this
case and now on MBNA’s appeal, the furnisher has made two arguments: 1. The furnisher duties
under Section 1681s-2(a) are not enforceable by any means and are separate and apart from the
duties under Section 1681s-2(b); and 2. There is no qualitative national standard for furnisher
compliance under the FCRA. MBNA has opposed even the imposition of a “reasonable
investigation” standard under the Act. In its Appellant’s Brief, the furnisher argued,

The words “reasonable” and “procedures” are plainly

absent from Section 1681s-2. Thus Congress did not intend to
impose upon any furnisher the duty to defend its investigation or

8
 records qualitatively under Section 1681s-2(b). Indeed, the
requirements of accuracy as they relate to mere furnishers of
information are contained in Section 1681s-2(a), a section which is
expressly made non-actionable by consumers like Johnson under
Section 1681s-2(c)-(d). ... If Congress had wanted to subject
furnishers to a qualitative standard, it easily could have done so.

This position, taken by MBNA, the largest credit card company in America, exposes the
distinction between the industry’s cry for Congress to maintain preemption and the reality in
which furnishers actually operate - one which still lacks any enforceable national standard.

Rather than comply with the spirit and intent of the FCRA, furnishers continue to fight its
application or ignore its accuracy objectives. Nearly every major furnisher who has been
deposed has confessed to a policy of automated investigations in which the consumer has almost
no hope of obtaining relief. The furnishers merely proofread the form from the CRA and match
it to the data within their computer’s account screen. There is no other means by which to verify
and correct a credit reporting dispute once the error has worked its way into the furnisher’s
computer account record. None of the major furnishers of which I am aware reviews original
documents or paper records. In a May 21, 2003 deposition, Capital One’s representative
confirmed this fact for her employer.

7 Q Okay. What kinds of information do your

8 ACDV operators have available to them through the
9 interface of the Odyssey system?
10 A Name, address, ECOA, pay history, cycle11 date, last date
paid. Statements, action or activity
12 on the account, late fees, past-due fees, membership
13 fees, etc.
14 Q What about original application information?
15 A That, we cannot see in Unisys.
16 Q All right. Is there a reason why it is that
17 your ACDV operators do not have access to all of the
18 other systems that I mentioned, being Tandem, CHIA,
19 Retain One, Casper, Baltrax, Amdahl, Capstone, and
20 Rocky?
21 A Yeah, I'll give you the simplified answer
22 first. Based on what my associates do, which is to
23 verify the information, the -- some of the systems
24 that you mentioned there are for in-depth research; my
25 associates do not complete in-depth research.

9
 When questioned further as to why Capital One would never conduct “in-depth research”
of FCRA disputes, the representative explained that the furnisher’s procedures were developed in
collaboration with the three bureaus, and that this is the policy which was developed through
such involvement.

1 Q Okay, why is it that your associates do not

2 complete in-depth research?
3 A They do that because, when the -- we had
4 three bureau reps actually come to Capital One in -- I
5 can verify this, I want to say it was like February of
6 2000 --
7 Q When you say -- let me stop you here for a
8 minute and interrupt, I'm sorry -- you say three
9 bureau reps, do you mean a rep from each of the
10 different bureaus or from combinations thereof?
11 A I'm sorry, a representative from each bureau
12 came on three separate visits, so a Trans Union rep
13 came, Experian rep, and then an Equifax rep.
14 Q Okay.
15 A And they came to explain to my team how to
16 more properly and more accurately work accounts, the
17 cases. One of the questions that I had for them, as a
18 manager, was should we verify the accounts -- and I
19 even explained to them what my definition of verify
20 is -- which is, we pull up our system of record, in
21 this case Unisys or Beast, we look at what the bureau
22 has sent us on the ACDV. If there are any
23 discrepancies, we make sure that what the bureau has
24 mirrors exactly what we, as Capital One, have. That's
25 verifying.
1 Q That was what you described to the
2 representatives as verifying?
3 A Yes.
4 Q And what did they say in response to that?
5 A Well, I actually followed that up with, Do6 you want
us to do that, or do you want us to do things
7 such as pull statements, etc., actually do the
8 research which would involve CHIA. And in each case,
9 the bureau rep said, No, we want you to verify it. We
10 want you to make our system look like your system. So
11 that's what we've been doing.

As long as consumers remain stuck in the catch-22 of the CRA-Furnisher responsibility

dodge, the FCRA will continue to offer little relief for your constituents. The Bureaus will

10
continue to issue flawed and inaccurate credit reports to the many innocent users who must rely
on same for their daily business decisions. Whether or not the industry lobby accepts this truth,
the financial services industry has far more to gain by improving the credit reporting system than
by accepting its serious flaws.

The continuing drumbeat from the other side of this issue is for extension of the FCRA’s
preemption of state credit reporting statutes. The argument that was made on May 8 and will be
repeated today is that our economy would be badly harmed if we replaced the FCRA’s “national
standards” with a patchwork of state substitutes. This argument is founded upon several false
assumptions. First, the argument assumes that the FCRA in its current form is working. It is not.
Disputes are up, identity theft is rampant, and consumer complaints to the FTC in the FCRA and
identity theft areas are overwhelming all other matters. Businesses cannot now comfortably rely
upon the credit reporting industry to produce an accurate predictor of default or bankruptcy.
Despite the efforts made in 1996, the FCRA still has failed to place and keep pressure upon
either the credit reporting agencies or the furnishers to maintain accuracy in the information they
report.

Industry's preemption argument assumes that the FCRA's "national standards" are in
competition with certain, unstated state standards. They are not. At a minimum, even with the
scheduled sunset, Section 1681t(a)'s preemption of "inconsistent" state laws will remain.
Furthermore, the FCRA establishes for furnishers a "national standard" of completeness and
accuracy. (The standard for CRAs remains "maximum possible accuracy.") I am unaware of any
state laws whose standards exceed those of the FCRA. The issue is not competing state standards
but more generous state remedies that protect consumers better than the FCRA does. Industry
ought to be forced to identify the purported "unworkable" state standards that form the
foundation of its position. If there really is a legitimate problem with competing state law
standards, NACA would join with industry and this Committee in accommodating those
concerns. Otherwise, the national standards established by the FCRA need simply to be
followed. This objective will not be furthered by adopting industry's proposed amendment.

11
 THE “HIDDEN TRUTH” ABOUT CREATING AN
ALTERNATE CREDIT FILE... AND HOW OTHER
CONSUMERS HAVE DONE IT LEGALLY!
Several different methods were developed over the last few decades that have allowed consumers to create
new ‘clean’ second (a.k.a “alternate”) credit files. However, there are two important things a consumer must
consider before they decide to use this technique. First, starting an “alternate” credit file does not relinquish them
from any previous liabilities that exist on their old (primary), damaged file. Second, it’s illegal for a consumer to
conceal adverse information that is accurate from a credit reporting agency or to any person who extends
credit such as a bank or credit card company.

There are several disadvantages to creating an alternate credit file for personal use. First, should you
ever have to show someone your SSN card - the numbers will not match. Second, if you’re required to
produce copies of tax returns in order to finance a home - again the number will not match. Third, because of
anti-terror legislation and the growing problem of identity theft, banks and credit card companies are increasingly
verifying Social Security Numbers (SSN’s) and other personal data through a number of different methods. And
last, but not least - as you know, the technique is not legal if you intend to conceal adverse information.

THE TRADITIONAL METHOD OF “FILE SEGREGATION”

For informational purposes only, here’s the most common method consumers have used to create new
‘alternate’ credit files. They fill out Form SS-4 and obtain an Employer Identification Number (EIN) from the
Internal Revenue Service (IRS). These numbers are generated by the IRS randomly. The first 2 digits of the
EIN must be less than “64” so it falls within the numbering sequence of Social Security Numbers. If too high of a
number is given, the consumer must reapply until they get the correct number. A consumer can only have a total
of three EIN’s!

Now in order for the consumer to keep their new file separate they must use a different address. Once
they’re ready to create their new file, they go out and apply for credit using their new EIN in place of their
SSN. The first time they apply for credit, they usually get a denial letter back from the credit card company stating
the reason as “No Record Found”. Upon being denied credit thereafter, the reason must be “Insufficient Credit
History”, or something similar, to indicate a new “clean” file has been created!

The consumer now goes out and gets a catalog card, or a secured credit card, and begins building their
credit from scratch while being extremely careful not to merge their damaged file with their new one. There are
many problems consumers face when using the EIN method, and it’s very easy for the consumer to make
one small mistake and get both credit files merged! Because of all the reasons we’ve outlined here, the
opinion we always tell our clients is to keep it legal and clean up their current credit file using the techniques
outlined here in the Credit Secrets Bible!

HOW CONSUMERS HAVE CREATED A SECOND CREDIT

FILE WITHOUT CHANGING THEIR CURRENT SSN!
To our knowledge, the following has NEVER been published in the history of credit repair. But this actually
happens by accident every day! It essentially allows consumers , who know about it, to enjoy the benefits
of a second credit file while still using their current SSN. How is this possible? Here’s how...

The credit bureaus computer system uses the following criteria in maintaining their records: The first TWO
letters of your last name, your current address, and your SSN. Here’s how consumers have accidentally
created a second credit file. First, for whatever reason their name changed (making the first two letters of their
last name different). Peoples names change every day (i.e. marriage), so there’s nothing unusual about that.
And...

Copyright 2007-2012
Consumer Publishing Group
127 NEXT PAGE

 Second, the consumer moves, so their address changes to one that has never been listed as a previous
address on their credit report. Third, the consumer then applies for credit using their current SSN, their
new last name, and new address, but forgets to list their previous address. When this is done, a second
credit file is often created accidentally! Keep in mind, most banks and credit card companies only pull a credit
report from one of the three credit bureaus. If they received it from Experian, then the consumers second credit file
would be in Experian’s files only.

If a consumer applies for a mortgage in the above example or orders a “tri-merge” credit report
(which both pull reports from all three credit bureaus) then a second credit file could be created - acci-
dentally - with all three credit bureaus! We’ve had many clients who have had this happen. A second file had
been accidentally created. The problem here is the minute any consumer knows they’re using a second credit
file, and they’re attempting to conceal their credit history, they’re breaking federal law!

WHY USING AN “ALTERNATE” CREDIT FILE IS UNETHICAL!

Using an alternate credit file - in our opinion - is actually fraud. For example, if you were to sell someone
a car without disclosing that its title had been salvaged, that’s fraud. The failure to disclose to the buyer a material
fact (that the car was in a salvage accident) that had he or she known, would have likely made a different decision
- is fraud. The buyer of the car in this example has been deceived as to its value, just as a bank or credit card
company is deceived as to the credit worthiness of a consumer using a second credit file. Anyhow, that’s enough
of me talking off my soapbox. Now I’m going to reveal to you...

THE ONLY 100% LEGAL METHOD YOU CAN USE

TO CREATE AN ALTERNATE CREDIT FILE!

This 100% legal method is quite simple. Instead of building personal credit on a second credit file under
your SSN - build business credit using an Employer Identification Number (EIN). Then contact Dunn & Bradstreet
to establish a business file. What do all these credit bureaus have in common besides tracking your credit?
Simple...

They all sell your credit information to outside lenders who are looking to approve you for business credit!
This is the one legitimate 100% legal and ethical way to build a alternate credit file, and it has been used
for decades by the rich and wealthy. Now it’s your turn! The first thing you’ll need is a new account reported to
your Business Credit File. One of the fastest ways to do this is through a technique we discussed earlier - a
Deposit Loan Program (or DLP).

Here’s exactly how DLPs work. First, you sign a loan agreement (the minimum is usually $25,000) and
pay your first month’s interest in advance (more on this later). Second, the DLP company deposits $25,000 into a
bank account in YOUR BUSINESS NAME and under your business’s EIN. Remember, this is a deposit only
account - no withdrawals are allowed. That’s understandable when you consider there’s NO CREDIT CHECK and
NO DEPOSIT. It’s strictly a credit building tool to get your business credit started. The bank then reports your
$25,000 loan to the major business credit bureaus under your Business Credit File!

Second, you can also “piggyback” your business credit onto your personal credit. So you’re building
business and personal credit at the same time at no additional cost! DLP’s usually charge monthly interest and
require a minimum of three interest payments be made. After the third month, you can then close the account and
you’re done. For greater score enhancement, it’s best to go the full 12 month term on the note.

Either way, once you close the account you will then have a $25,000 installment loan - PAID IN
FULL - reported to your Business and Personal Credit File! The downside is you will need about $2,500
dollars to complete a 12-month DLP. In addition, there is only one company we know of that makes this possible.
For cheaper and simpler alternatives to building business credit visit http://www.ConsumerPublishingGroup.com.

* This information is subject to change without notice!

For DLP more, information visit http://www.try.tc
Copyright 2007-2012
Consumer Publishing Group
128 NEXT PAGE

 How To Start Fixing Your Credit FAST Using ALL
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 7 FREE

And

EXCLUSIVE

CREDIT

ARTICLES

By Jay Peters
Consumer Publishing Group
 The TRUTH About storing your credit will do nothing more than lead
Credit Repair... you into a snake pit. This is because they pro-
by Jay Peters vide you with outdated "Boiler Plate" dispute let-
ters which are rarely effective. These are noth-
Have you ever wondered what companies ing more than form letters and... Quite frankly
send you when they claim you can erase your bad (more bad news) the Credit Bureaus and Credi-
credit overnight? How about those ads that say tors will laugh at you if you try to use them.
you can get any major credit card 100% Guaran-
teed regardless of your credit? While I agree with the Federal Trade Com-
mission (FTC) that "Anything a Credit Repair
Ads abound almost everywhere (online and off) Clinic can do for you legally, you can do for your-
selling books, systems and secrets to help you self at little or not cost"... The key element you
fix your credit in a hurry. Many of these programs need for success is the latest inside techniques
have claims which read like the covers of super- and procedures to get the results you want. These
market tabloids "In 3 hours my credit score involve strategies known as "Proof of Contract",
jumped from 580 to 676!"... "Erase bad credit "Constructive Notice", "Challenge of Procedure"
and smash your debts with just 2 Magic Letters!". or "Restrictive Endorsement" and many others.
"Create a completely new credit file in 24 hours!"
Are these types of claims ALWAYS too good to All these terms may "sound" impressive but
be true? The answer is "Yes and... No". they are really quite simple. In the end, it is noth-
ing more than a method of communication which
While many people would love for you to be- exercises your consumer protection rights, gets
lieve that the only thing that can fix bad credit is the results you want and raises your credit score.
time; in reality... Nothing could be further from the Even more impressive, once you learn how
truth. The fact is, time is only one factor which will simple it can be by doing it for yourself, you will
fix a credit report (but it's a far cry from being the find there is a fortune to be made doing it for oth-
only factor). How can I back this up? Easy. Un- ers! Either way, it all starts by requesting a free
der a consumer protection law known as the Fair copy of your credit report by visiting:
Credit Reporting Act (a.k.a. The FCRA) the only www.AnnualCreditReport.com.
negative information which can remain on your
credit report is not what is accurate... But what Jay Peters is the Marketing Director for Con-
can be proved as such. What's this mean to you? sumer Publishing Group which publishes the
Credit Secrets Bible (in print since 1994). To
It means any negative item on your credit re- receive Free Credit Tips including "How To Make
port can only remain there if it is accurate and Yourself Identity Theft PROOF in 60 minutes or
CAN BE PROVED AS ACCURATE under the less For FREE!" visit their website: http://
guidelines of the FCRA. This undisputable fact www.Credit-Secrets-Bible.com
presents consumers with both good news and bad
news. The good news is that through the FCRA (c) Copyright 2007 by Jay Peters
your credit score can most likely be improved dra- ******************************************************
matically in a very short period of time with only a NOTE TO PUBLISHERS: Permission is
modest amount of effort on your part. granted by Consumer Publishing Group for pub-
lishers to reproduce this article (in full or in part)
The bad news is that while the actual "work" provided website address www.Credit-Secrets-
will take very little of your time, it is vital that you Bible.com is retained.
have good information on "how" to go about it. ******************************************************
This is the bad news; 9 out of 10 courses on re-
Copyright 2007-2012
Consumer Publishing Group
131 NEXT PAGE

 Is Your Credit Score 3.) LIFE and HEALTH INSURANCE. Custom-
Costing You A Fortune? ers who are unable to pay their monthly insurance
by Jay Peters premium thereby pass along that increased cost
to the insurance company whose stuck with the
While some surveys show that 9 out of 10 con- bill... Resulting in a loss for the company. Since
sumers are unaware what their credit score is, customers who pay without lapse are more prof-
I'd like to quickly share with you how your credit itable it is felt by many that a low credit score now
score could be costing you a fortune... In more even affects a monthly life and/or health insurance
ways than you can imagine. premium negatively.

We all know a low credit score will make ev- One of the more shocking areas where a low
erything in the world of finance more expensive credit score will you cost you is in the area of em-
because of higher interest rates from lenders due ployment. It's estimated as many as 42% of em-
to being considered a greater credit risk (i.e. ployers now do credit checks on applicants be-
higher interest rates on car, homes and credit fore hiring them (according to a 1998 survey by
cards). While this may be considered common the Society for Human Resource Management).
knowledge by some, it's truly devastating effects
are understood by few. While many employers claim they only do it to
"verify" information on your application (such as
For example. If you purchase a $200,000 where you live and where you have worked etc.)
home on a 30 year fixed mortgage at 8% interest we can both assume they are taking the liberty to
instead of 6% (because of your credit score); that "have a peek" at how you handle your financial
2% is going to end up costing you a total of affairs as well. According to the Public Research
$96,934.11 over the term of the loan. Now, think Interest Group (PIRG) as many as 79% all credit
about how many "extra" years you'll have to work reports contain errors - 25% of which are seri-
to pay off $96,934.11 because of an extra 2% in ous enough to cause the denial of credit (accord-
interest? ing to a 2004 report).

The part few people talk about is all the other And that's all the more troubling in light of the
areas in life where a low score will increase yourincreasing impact a bad credit report can have,
cost of living on an annual basis. For example. says Ed Mierzwinski, director of PIRG's con-
In addition to paying more for a car, home and sumer program. "It's outrageous that the credit
credit cards, a low credit score will most likely bureaus are claiming their scores are accurate
have you paying more for the following as well. enough to take people's lives and screw with them
like this".
1.) AUTO INSURANCE. As many as 92% of Jay Peters is the Marketing Director for Con-
the 100 largest personal automobile insurers use sumer Publishing Group which publishes the
credit information to underwrite new business, Credit Secrets Bible (in print since 1994). To
according to a 2001 study by Conning & Co., an receive Free Credit Tips including "How To Make
insurance-research and asset-management firm. Yourself Identity Theft PROOF in 60 minutes or
less For FREE!" visit their website: http://
2.) HOMEOWNERS INSURANCE. It's thought www.Credit-Secrets-Bible.com
many insurance companies see a correlation be-
tween low credit scores and increased property (c) Copyright 2007 by Jay Peters
insurance claims. Therefore, a low score will re-
sult in higher rates. ******************************************************

Copyright 2007-2012
Consumer Publishing Group
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NOTE TO PUBLISHERS: Permission is $10,000 in total unsecured revolving credit ac-
granted by Consumer Publishing Group for counts and you're currently in debt $2500, then
publishers to reproduce this article (in full or in your debt to credit ratio is 25%. Since the main
part) provided website address www.Credit-Se- way lenders make money is by charging inter-
crets-Bible.com is retained. est, one of the elements of the credit scoring
****************************************************** model is driven by your ability to maintain bal-
ances and pay over time. This shows your true
Insider Techniques To Raise (long term) credit worthiness which is most prof-
Your Credit Score Fast itable to lenders since they make money prima-
by Jay Peters rily via interest and not annual fees.

If there is one question I'm asked by consum- Over the years we've discovered without ques-
ers more than any other about credit, it's this tion that carrying the proper debt to credit ratio
"What's the fastest way to raise my credit will boost your score faster than paying off your
score?". My response is always the same "How bills in full each month. I have argued with the
much do you want to raise it?" Better Business Bureau on this topic and they
still disagree (despite my sending them proof
If you wish to increase your score from 580 to from Fair Isaacs own website www.MyFico.com
650 then your strategy will be very different from the organization which invented the credit scor-
someone wanting to go from 670 to 725. Why? ing software used by credit bureaus).
Because you starting point is different which re-
quires a different approach. Also, while the re- Of course, what do you do if you're like most
moval of negative items from a report will almost Americans and your debt to credit ratio is too
always lead to an increase in score, it's a basic high? For example. You have $10,000 in unse-
concept at best. Therefore, within this article, cured revolving accounts but you owe $8500,
we'll discuss somewhat inside techniques known thereby giving you an 85% debt to credit ratio.
by very few (since this is what our company spe- How can you bring it down without selling every-
cializes in publishing). thing you own? The answer is simple and takes
us to the next technique which is...
In relation to just removing negative items,
these are techniques which you can use even if SUB-PRIME MERCHANDISE CARDS: The
you have NO derogatory information on your single most cost effective (and powerful) tool for
credit report. We'll start with the most overlooked consumers to increase their high credit limit and
strategy first and that's your... decrease their debt to credit ratio is the use of
Sub-Prime Merchandise Cards which report to
DEBT to CREDIT RATIO: The most fraudulent one of more of the major credit bureaus.
belief I've been hearing for over 15 years is "I
have excellent credit, I pay all my bills off in full Unfortunately, despite their immense benefits,
every month!" This is a false belief for one to these are the most misunderstood cards in the
buy into and understanding your debt to credit credit industry. A large portion of the misunder-
ratio holds the key to getting your "credit mind- standing is due to marketers misrepresenting the
set" right. cards and the growing number of companies pro-
moting them. When you learn how they work one
Your debt to credit ratio is your ratio of debt to quickly understands why they have been the sub-
total available credit you have been extended (re- ject of much misrepresentation.
volving accounts only). For example. If you have

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 A Sub-Prime Merchandise Card is nothing 1.) It will increase your current "High Credit Limit"
more than a card attached to a line of credit which by $5,000 almost overnight as the account "looks"
allows you to buy merchandise from a specific like any other unsecured revolving account.
vendor (usually the company that sold you the
card). The merchandise (in most cases) will be 2.) By carrying a small outstanding balance it will
purchased through a catalog or online mall. positively impact your credit report by building and
showing potential lenders your credit worthiness.
Where the problem arises is that the cards are
marketed almost exclusively to the sub prime 3.) With a good payment history you are virtually
market via email, telemarketing and direct mail guaranteed to receive "legitimate" pre-approved
etc. The reason for this is they can advertise al- credit offers in the future due to other lenders rent-
most irresistible offers like "$5,000 Credit Card... ing your name from the credit bureaus.
GUARANTEED! No Credit Check! NO Co-
signer! You cannot be turned down!" Or "Unse- This technique is hard to beat for both cost and
cured $10,000 Credit Line! Everyone Ap- effectiveness. Of course, the whole key is know-
proved!". I'm sure you get the idea... ing exactly which cards report to the credit bu-
reau and offer the best rates. The only thing more
While there are many companies which do this effective is...
and are a "shady at best", there are a few which
do it legitimately and it's the best kept secret to PIGGYBACKING/PYRAMIDING: Despite its'
build your credit and build it fast. virtually unlimited potential, piggybacking is not
used by nearly as many consumers as it should
Here's how it works: the company approves any- be. It's easy, effective, and extremely fast. Unfor-
one with a pulse (literally) and gives them a card tunately, it's mostly used among parents and sib-
for $2,500 to $12,500 with NO credit check and lings while those who can really benefit stay in
NO Cosigner. However, the card is only good for the dark.
merchandise through their website or catalogs
and the consumer is required to put down a de- How it works. Almost every credit card or credit
posit on whatever they purchase. After the de- account will allow the primary account holder to
posit is paid, the remaining balance is financed add on (at a later date) what's known as an "Au-
on the card. thorized User" or "Secondary Account Holder".
In most cases, when this is done, the entire ac-
For example. A person buys $1,000 worth of count history (retroactively) gets posted to the au-
merchandise. Their deposit is $300 so they then thorized users credit report regardless of their
finance $700 on their merchandise card and current age or credit history!
make payments. Sound like a scam? If you say
"Yes" like most people then you're missing the For example. If it's a credit card with a $10,000
point... Big time. limit which has been paid as agreed for the last
10 years, then that complete history will be posted
With a legitimate Sub-Prime Merchandise to the authorized users' credit report. I once saw
Card your credit line WILL be reported to at least a clients' credit report who used this technique
one major credit bureau (or more). This means if with his mother. He was only 24 at the time and
you get a $5,000 card and you finance $500, on he had a $15,000 Gold credit card on his report
your credit report it will look like any other credit with history going back 11 years! I laughed as I
card and will do three extremely important things thought to myself that this kid would have had to
for you. be approved when he was 13 years old for this

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account to be his! the future to secure the lowest possible rate on a
mortgage when they applied and needed it.
As you can see, this strategy is usually only
used by parents and their children and in most More complex forms of Advance Credit Profil-
cases with no regard to the benefits the children ing involve one subscribing to affluent or semi-
are reaping credit wise! In fact, in recent years, affluent business and professional publications
due to its' effectiveness, this technique has led and organizations. These would include maga-
individuals with excellent credit scores to "rent zines, newsletters, trade journals and national as-
out" authorized user accounts on one or even sociations. The goal is to get ones name into
multiple credit cards in return for a fee! I once the databases of these publications and organi-
recall seeing an ad in USA TODAY for just such zations. Why? To get on highly targeted lists in
an opportunity. Like most good credit loopholes, order to receive select credit offers.
I'm sure this methods' days are numbered much
like what may be the case with... Marketers of credit offers have found that sim-
ply renting names of consumers from the credit
ADVANCED CREDIT PROFILING: This is a bureaus does not provide enough information
strategy while not complex, can be taken to very about the person as a credit risk anymore. There-
complex levels. Even in its' most basic form, it's fore, it is speculated that many will rent a list from
taken advantage of by very, very few. It involves the credit bureau and then cross-reference this
intentionally building your credit report in a way list against another list they have secured from a
which creates a "profile" that closely fits the cri- consumer source such as an affluent business
teria of most lenders (as well as the overall credit or professional publication, trade journal or or-
scoring system). Again, this is a technique which ganization.
can be used in a myriad of complex ways, but for
simplicity I will explain it in its' most basic form. By crossing the two lists together the market-
ers find the names contained on both lists. This
While many consumers will boast when they in turn provides them with one highly refined and
have 10, 20, 30 or even 50 thousand dollars worth targeted list to mail their offer to. This results in
of credit cards on their report, many of these shortening the process of securing a new quality
same people do NOT have even one mortgage, account holder thus lowering the overall account
automotive loan or lease, equipment loan or a acquisition cost of new accounts.
even a line of credit with a local bank or credit
union. These other forms of credit create a much When a consumer learns how to intentionally
more well rounded credit profile for the consumer. put themselves into these databases to wind up
This is achieved by showing greater credit ac- on these refined lists, the credit building process
count diversity and experience with multiple types is sped up exponentially. Of course, many would
of credit due to the various lines held. call this "highly speculative" but we have undeni-
able experience that it works.
For example. A person with $50K in credit
cards does not represent near the credit experi- DEPOSIT LOAN PROGRAMS: This is a tech-
ence as a person with the same $50K along with nique so unbelievable that I myself proclaimed it
a mortgage, an automotive loan and an equip- had to be a scam before researching the facts.
ment lease. We have clients who have financed It allows the consumer (or business) to have a
vehicles not because they had to (or even wanted $25,000 to $250,000 loan appear on their credit
to) but because they "needed to" in order to cre- report as "Paid as Agreed" by way of very cre-
ate a credit profile that would position them in ative financing. This method is extremely effec-

Copyright 2007-2012
Consumer Publishing Group
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tive and not within the budget of most ($750 to from consumers. Of course, the hate mail is al-
$7,500 upfront). Also, because this technique ways from a few people that happen to own these
takes advantage of certain banking laws, I have "certain types" of businesses I discussed and
reason to believe it could be made unavailable those businesses of course are Credit Counsel-
at any time if those banking laws were to change. ing or Debt Consolidation companies; of which
This method can be used with consumer credit many "claim" to be non-profit organizations.
files on SSN's as well as business and corpo-
rate credit files done on TIN's as well as Dunn You'd almost have to be an ostrich with your
and Bradstreet. head stuck in the sand to not see or hear at least
one advertisement a day from a Credit Counsel-
In the end, all of us need to remember that to- ing or Debt Consolidation Company. However,
day our credit score is more important than it has you can expect this to change and change soon.
ever been in the history of the credit reporting Since this is a topic which tends to "stir up" the
system. While credit miracles don't happen over- owners of these businesses, I am going to take
night, you can create your own credit miracles by a different approach by NOT sharing my opinion,
applying simple insider strategies consistently but rather, the opinion of others. I will start with
over time. Before you know it, you're a proud the news media and the Internal Revenue Ser-
member of the 700 Club. The "700 Plus Credit vice:
Score" club that is!
"(NPR News, May 15, 2006). The Internal Rev-
Jay Peters is the Marketing Director for Con- enue Service is revoking the tax exempt status
sumer Publishing Group which publishes the of some of the largest credit counseling agen-
Credit Secrets Bible (in print since 1994). To cies in the country. An IRS investigation disclosed
receive Free Credit Tips including "How To Make that the firms solicited business from people se-
Yourself Identity Theft PROOF in 60 minutes or riously in debt and that they didn't provide coun-
less For FREE!" visit their website: http:// seling or consumer education, as required.
www.Credit-Secrets-Bible.com
Prodded in part by a congressional oversight
(c) Copyright 2007 by Jay Peters committee and consumer advocates, the IRS be-
gan investigating dozens of credit counseling
****************************************************** agencies -- most holding nonprofit status -- two
NOTE TO PUBLISHERS: Permission is years ago. IRS Commissioner Mark Everson
granted by Consumer Publishing Group for pub- says the companies "poisoned an entire sector
lishers to reproduce this article (in full or in part) of the charitable community."
provided website address www.Credit-Secrets-
Bible.com is retained. Everson says in many instances, companies
****************************************************** were organized merely to funnel business to
loosely affiliated for-profit companies. Many of the
Facts Consumers Should Know firms spend millions of dollars on commercials
Before Considering Credit that urge anyone with debt to call them to solve
Counseling or Debt Consolidation their financial woes. And because tax-exempt or-
By Jay Peters ganizations are not bound by the federal do-not
call list, the firms were able to randomly call con-
There is one topic which every time I write about sumers, pitching their services under the guise
it seems to generate some hate mail while at the of a non-profit counseling service.
same time spawning a flurry of wonderful praise

Copyright 2007-2012
Consumer Publishing Group
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 The IRS investigations are also likely to affect tors (as well as anyone considering giving you
consumers, thanks to a new bankruptcy law that credit) is that you are so out of control with your
requires consumers considering bankruptcy to get finances that you can't even manage paying ev-
counseling before they are allowed to file. The eryone back on your own. Therefore, you're hir-
IRS wants to ensure that only legitimate non-profit ing someone else to do it for you!
agencies are doing the counseling. In addition
to the actions announced Monday, the IRS is 99% of the time these companies will claim
sending more than 700 compliance letters to the they can negotiate with your creditors and get
rest of the credit counseling industry (END)." interest rates reduced thereby saving you money.
While this is true, what's also true is you can easily
Since almost all Credit Counseling and Debt negotiate these same rates as well as they can
Consolidation companies claim a non-profit sta- by just calling your creditors yourself. You'd be
tus, I feel most consumers are easily sucked in amazed at how many of your creditors would love
with their skepticism and defenses at bay. After to hear from you (especially when the chips are
all, when most of us hear the word "nonprofit" the down!). Not too mention, any money the coun-
first thing we usually think of is a church or home- seling company was to save you would more than
less shelter. likely be sucked back up by their monthly fees
(usually around $500 to $1,000 per year).
From the NPR article and the actions of the IRS,
I think it's fair to assume that many of these "non- This brings us into a whole other dynamic of
profit" organizations have been operating under their business model. Because these compa-
a scenario similar to that of a wolf guarding a hen nies always make their money off of monthly fees
house. However, this doesn't mean all credit paid by the consumer, the longer they can keep
counseling and debt consolidation companies are those monthly fees coming in the more profitable
bad but... You do need to know the truth about their business will be. It's for this reason that most
how they operate and their limitations. consumers who sign up with these companies
usually find themselves on payment plans with
The first thing you want to understand is these the lowest monthly payment possible (which turns
companies are ALL more interested in making out to also be the LONGEST payment plan as
money off you than they are in preserving your well). Not surprising is it?
credit rating. The bottom line with either credit
counseling or debt consolidation is that it abso- Am I against Credit Counseling and Debt Con-
lutely ruins your credit. I can just hear the compa- solidation companies? Absolutely not. After all,
nies arguing this with a consumer right now, tell- there are millions of people in America who will
ing them nonsense like "It helps your credit since never be able to manage their finances. Credit
it tells creditors that you're working on your situa- to them is a destructive addiction much like al-
tion and not just running away from it." Listen... If cohol or drugs and they will never be able to con-
one these places tells you that than watch out. trol it. Instead, it will always control them. We've
Why? Because they will lie to you about other all seen these people. Every time they are ex-
things as well! tended credit shortly thereafter they are in finan-
cial trouble (usually blaming it on some external
One of the first actions these programs usually factor). For these people I think these credit and
requires you to do is for you to CLOSE all your debt counseling programs can be a good thing
revolving credit accounts. You then make pay- (as a ruined credit report is not a hindrance to
ments to the organization and they take care of them but actually an asset). It keeps them out of
everything for you. What this says to all your credi- future financial trouble by forcing them to live their

Copyright 2007-2012
Consumer Publishing Group
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lives on a "cash and carry" basis; which is ulti- (c) Copyright 2007 by Jay Peters
mately conducive to a better standard of living
down the road. ******************************************************
NOTE TO PUBLISHERS: Permission is
On the other hand. If you're good with your fi- granted by Consumer Publishing Group for
nances and have control with credit but went publishers to reproduce this article (in full or
through some type of hardship beyond your con- in part) provided website address www.Credit-
trol in the past (i.e. divorce, job loss, etc.); then Secrets-Bible.com is retained
the services of these companies will never be for ******************************************************
you. You will do far better and preserve your credit
rating by taking matters into your own hands. Rea- Five Things Every Married Person
son being is that you understand your credit rat- Should Know Before Signing
ing is a powerful tool that can help you move Any Credit Application
ahead faster, help others and help yourself as well by Jay Peters
as create the life you want. It all comes down to
self management. We all know that those who Have you ever wondered if banks have a ten-
cannot manage themselves will ultimately be man- dency to approve credit cards and loans for one
aged by others. Credit is no different. When you sex more than the other? If you are married (or
learn to manage it well, you are the master and it plan to be) I will share with you five vital keys
is the servant. every married person should know before sign-
If you care about your credit and want to benefit ing any credit application.
from it in the future, then you will never rely on a
credit or debt counseling service to help you get VITAL KEY #1: According to the Federal Equal
out of any trouble you find yourself in. Instead, Credit Opportunity Act (FECOA) creditors can-
you'll look inward and get yourself out while pre- not deny consumers access to credit because
serving your credit rating the best you can. Credit of their sex. However, on average (in surveys)
and debt counseling is for people who are "ok" it's reported that women earn less money than
with throwing their credit rating in the trash so they men. Regardless of what the FECOA states,
can have "someone else" manage their payments the relationship of credit to income is very
for them (since they are unable to manage them strong.
themselves). And again, as far as negotiating
interest rates, you can do just as good as them In our society if you make less money you will
or better. If you don't believe me just call any of get less credit, period. The sad fact is that
your creditors and straight out tell them your situ- women on there own have less access to credit.
ation. You will quickly find you don't need to be It's for this reason (I believe) it is imperative that
afraid of them. They just want to get paid like the women learn and acquire more knowledge
rest of us. about credit than men. Knowledge is power;
and in the world of credit that knowledge will
Jay Peters is the Marketing Director for Con- often times prove to be priceless, especially for
sumer Publishing Group which publishes the women.
Credit Secrets Bible (in print since 1994). To
receive Free Credit Tips including "How To Make VITAL KEY #2: If you are a married woman with
Yourself Identity Theft PROOF in 60 minutes or JOINT credit (meaning all your credit accounts
less For FREE!" visit their website: http:// are jointly held with your husband) you have NO
www.Credit-Secrets-Bible.com CREDIT yourself. Many women in America find
this out the hard way every year when they get

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divorced and lose all their credit privileges since VITAL KEY #5: Spouses have more to gain by
all their accounts were jointly held with their each building strong individual credit reports
spouse. If you are a woman in this position you rather than joining all accounts and building one
can greatly benefit by beginning to build your own joint report. For obvious reasons, banks and
credit in your own name starting today! The ben- credit card companies love the "credit ignorance"
efits are two fold. of spouses who join all their credit accounts upon
marriage.
1.) If your spouse has financial difficulties (for any
reason) and is forced to file bankruptcy or their Here's why: If you take 500,000 couples with
credit becomes derogatory, you and your spouse credit before they got married, those 500,000
will have your credit in reserve to survive on. couples actually represent one million credit ac-
counts and liabilities for the banks and lenders.
2.) If you ever get divorced down the road (over When those couples got married, those one mil-
50% do and 76% in the state of California) you lion credit liabilities were instantly were cut in half
will NOT end up in financial hardship due to no from one million to only 500,000. For banks this
credit and/or derogatory credit. Instead, you will is a very advantageous situation. For the couples
have your credit to transition to and (believe me) getting married (if they have financial trouble) the
this can be the difference between sailing off in deal is a little raw. If they have trouble, although
the sunset or drowning in a storm. they are two people, they are represented by only
VITAL KEY #3: If you are currently married (with one credit report. The bank now has the right to
some credit or no credit) to a spouse who has go after two different people for one account (re-
excellent credit, you can leverage their credit to gardless of who was financially negligent).
build credit in your own name much faster than if
you had to build it by yourself. Later, once you For moment, let's play out the same scenario
have established enough accounts on your own, with a couple which is financially savvy (note:
you may choose to cancel accounts that were held they're both on the same "team" but financially
jointly with your spouse. savvy). In this scenario, the couple gets married,
but instead of joining account each builds their
VITAL KEY #4: If you are a single woman with individual credit reports. Now this couple (team)
excellent credit and are getting married you may has not one credit report representing them but
want to think twice about adding your new lover two. Metaphorically, if the perfect storm (finan-
to all your credit accounts. If he messes up or you cially) is to rise, this is the difference between
end up in divorce down the road your credit will the couple being in the ocean with two ships in-
end up taking the beating (regardless of how many stead of one. If the one ship starts to sink, the
years you diligently spent building it up). For this couple can always "jump ship" to the second.
reason, I strongly suggest married couples keep
their credit separate. Why? While some may criticize this thinking it is no
different than buying any kind of insurance. You
In most cases spouses have far more to lose buy insurance not because you plan on a prob-
than to gain. Naturally, some credit will have to lem. You buy insurance because you are think-
be joint no matter what you do. If you purchase a ing ahead. This type of thinking is no different.
home (which may require both incomes to qualify) However, if you want to be ahead of the pack that
this will appear as a joint account on the credit you need to think ahead of the pack.
report. However, the potential abuse with a home
mortgage is almost non existent as opposed to I cannot tell you how many times I have talked
Credit Cards. to loving married couples in financial trouble who

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only WISHED they would have known about these for you legally you can do for yourself at little or no
five vital keys before they got into financial cost". While I agree with the FTC I also under-
trouble. Take them, study them, apply them to stand some consumers do not have the time, pa-
your life. As I heard one woman put it "In busi- tience (or knowledge) to do the work themselves
ness and in life I've learned to expect the best and the thought of "drive-thru-we-do-it-all-for-you-
but plan for the worst". I thought her words were credit-repair" becomes very appealing. After all,
brilliant. However, I have found that when I ex- everything a mobile oil change service can do for
pect the best... Many times I tend to get it! Take me I can also do myself at little or no cost (but you
these five vital keys. Study them. Apply them. won't find me changing the oil in my car this week-
Then pass them on to someone else who can end!).
benefit from them.
Although some things are better done yourself,
Jay Peters is the Marketing Director for Con- only you can determine if doing your own credit
sumer Publishing Group which publishes the restoration work will be one of them. This is why
Credit Secrets Bible (in print since 1994). To understanding both the advantages and limita-
receive Free Credit Tips including "How To Make tions of a credit repair company and the structure
Yourself Identity Theft PROOF in 60 minutes or from which it operates are VERY important.
less For FREE!" visit their website: http://
www.Credit-Secrets-Bible.com REFERENCES: Any legitimate company or in-
(c) Copyright 2007 by Jay Peters dividual doing credit restoration work for consum-
ers will be able to provide you with at least half a
****************************************************** dozen references. If the company or person is
NOTE TO PUBLISHERS: Permission is local you should be able to call these references.
granted by Consumer Publishing Group for pub- This is without question the most important point
lishers to reproduce this article (in full or in part) of consideration when hiring a professional to do
provided website address www.Credit-Secrets- the work for you.
Bible.com is retained.
****************************************************** If possible, I suggest you ask friends, family,
relatives and professional contacts if they know
Facts Consumers Should Know Before of someone who does credit restoration work as
Using A Credit Repair Company a side business. By far the highest percentage
by Jay Peters of successful stories I hear from consumers are
those which come from those who found a credit
Have you ever wondered about those ads you consultant via personal referral. I cannot stress
see from companies and law firms which offer to this enough. It's the difference between going on
fix your credit for a low monthly fee? People with a vacation with a close friend instead of a stranger.
credit problems often ask me when it comes to
improving their credit score whether they should CONTRACT: Unlike painting a house or putting
hire a credit repair company or do it themselves? in a driveway, credit restoration work (and results)
Unfortunately, there is no simple or universal an- are extremely broad. Therefore, the use of a con-
swer to this question. However, I will shed some tract is imperative. Most likely your credit chal-
light on the subject if you're in need of a little en- lenges didn't occur overnight and they won't be
lightenment. improved overnight either. A good contract pro-
tects you as well as the service provider. The
According to the Federal Trade Commission contract should be easy to understand without an
(FTC) "Everything a credit repair clinic can do Attorney and spell out the actual services which

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will be rendered as well as the service providers' 3.) One of the biggest challenges credit repair
limitations (i.e. they cannot guarantee the removal companies charging low monthly fees run into is
of any one particular item but can guarantee an being forced to rely on the use of Automated
overall increase in score overtime). "Boiler Plate" Dispute and Correspondence Let-
ters. Boiler Plate Letters are simple form letters
MONTHLY FEE: One of the most critical ele- which are used for ALL consumers (one format
ments which affects "how" a credit restoration fits all). Once set up in a computer program with
company operates is determined by its' payment the consumers' information they are "shot out"
structure. One of the most common payment automatically on behalf of the consumers needs
structures of large companies or law firms doing (i.e. disputing a late pay, charge-off or judgment,
credit restoration is that of the monthly "auto-debit" etc).
fee. In this structure the consumer usually pays The problem here is that when a credit repair
$49 to $99 up front and then a monthly fee of $39 company has thousands of clients they are shoot-
to $49 per month. While there is an advantage ing these form letters out for, the creditors, col-
to this method (affordability) with it comes many lection agencies and credit bureaus can take
disadvantages. notice of these letters being used over and over
and discover your correspondence is coming
1.) The first disadvantage this structure creates from a third party (i.e. credit repair company or
is that it gives the company absolutely no incen- law firm) and in some cases ignore it or (worse
tive to work quickly or aggressively on behalf of yet) mark the dispute frivolous and flag your credit
the consumer. In fact, the opposite is true. The report. I spoke with a man recently who was on
longer they take the longer they will continue to the inside of a large credit repair company who
collect their monthly fee! In most cases this struc- informed me they had an archive of over 10,000
ture leads to slow results over a very long period boiler plate letters on file to avoid this problem.
of time. Looking at it logically, this shouldn't come Of course, they charged customers by the month.
as a surprise.
NONDISCLOSURE OF METHODS: One of the
2.) The other challenge within this structure is most troubling issues with 95% of large credit
the actual amount of time, effort and resources repair firms (especially law firms) is their nondis-
which a company or law firm can reasonably al- closure of dispute tactics and methods. As a con-
locate on a consumer's behalf. Remember, any sumer it is vital that you are made aware of the
large business has a tremendous amount of over- methods they are using in dealing with your credi-
head which quickly chews up most of that monthly tors, collections and the credit bureaus. If the or-
fee. Out of that $39 to $49 there are monthly ex- ganization or law firm violates laws or makes er-
penses including but not limited to: Advertising, rors (I have witnessed both) you could be held
Office Rent and Utilities, Employee Payroll and liable for their negligence. In addition, this can
Taxes, Health Insurance, Phone Service, Office actually make your credit worse and create prob-
Supplies, Refunds, Computer Maintenance and lems which are very difficult to clean up. Anyone
Programming, Website Administration, Office doing credit restoration for you should disclose
Supplies and let's not forget postage for mailing "what" they are doing since you are paying for a
letters to creditors, collection agencies and credit service. If they won't, you better run the other way
bureaus. A much simpler way to think of this is as they could be pouring gas on a blazing camp
by imagining if you had a client paying you $39 a fire.
month; how much work would you be willing to
do? LOCATED IN HOME STATE: This is one of the

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most overlooked keys to successful third party news is that it will almost always turn out to be the
credit restoration which consumers miss. It is highest paid work you will ever do in your life. How
absolutely vital when having someone else do high? How does $500 to $2500 an hour sound?
your credit restoration work for you that they op- I understand it's a bold claim but not one I am un-
erate within your home state. Here's why: if a able to back up.
credit repair company or law firm mails dispute
letters or correspondence on your behalf from If you're ever going to finance a first or second
another state, that mail will be postmarked from home (which everyone eventually should for the
that state. If the credit bureau catches this they tax breaks) the difference between good credit
can (and in many cases will) mark the dispute as and poor credit will affect your interest rate. If you
frivolous and flag your credit file. secure a $200,000 mortgage on a 30 year term
and your interest rate is only 2% lower because
It is known that many Credit Repair Companies of a high credit score, that 2% will save you
and Law Firms will resort to or create some kind $96,934.11 over the course of the loan (just be-
of method to get around this in order to get dis- cause you had better credit). Take that $96,934.11
putes postmarked from the consumers' home and divide it by the 30 to 50 hours you may spend
state (potentially more nondisclosure). For ex- working on your credit situation and you'll quickly
ample. If they are in NY and you are in CA they realize credit restoration when done properly does
will first have to mail your dispute letters inside not cost - it pays!
an envelope from NY to CA. Once in CA some-
one opens the envelope and then mails your dis- Jay Peters is the Marketing Director for Consumer
pute letters from CA so they postmarked from your Publishing Group which publishes the Credit Se-
home state. I am not an expert on postal regula- crets Bible (in print since 1994). To receive Free
tions but had a postal employee tell me the con- Credit Tips including "How To Make Yourself Iden-
cept sounded extremely shady at best. tity Theft PROOF in 60 minutes or less For FREE!"
visit their website: http://www.Credit-Secrets-
CUSTOMIZATION: It's for this reason that some Bible.com
of the most advanced forms of credit restoration (c) Copyright 2007 by Jay Peters
are done completely customized for the client and
even (in many cases) by hand. The best credit ******************************************************
restoration companies I've seen are usually run NOTE TO PUBLISHERS: Permission is granted
by one person or a small number of people and by Consumer Publishing Group for publishers
are extremely customized for each client. The is to reproduce this article (in full or in part) pro-
the most effective but with effectiveness comes vided website address www.Credit-Secrets-
cost. Every one of these services I have seen Bible.com is retained.
charges a very large upfront fee and works en- ******************************************************
tirely off of referrals. This type of service is sim-
ply impossible to perform for $39 or even $49 a The Truth About Creating
month. An Alternate Credit File
by Jay Peters
Unfortunately, if you are unable to find some-
one in your area (preferably an individual) by way What if I told you there was a way you could
of referral through a friend, relative or professional solve all your bad credit problems overnight by
contact, then I recommend you take matters into creating a brand new credit file in 24 hours - would
your own hands and do it yourself. I realize most you be interested? And what if I told you this pro-
consumers do not want to hear this but the good gram was 100% legal and even backed by the

Copyright 2007-2012
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federal government - would that sound too good of ones’ SSN is completely legal since creditors
to be true? are on shaky ground asking for your SSN in the
first place. In regards to the truth in lending act
Well… you’re right. It is too good to be true but they will argue that one has to exhibit “an intent to
these types of ads are now surfacing again after defraud” a creditor. My question “Is concealing
the Federal Trade Commission launched “Op- ones’ adverse credit history intent in itself?” While
eration New ID Bad Idea” over 8 years ago. This I am not an Attorney on the matter of credit law I
operation targeted (and took down) over 50 credit can conclude that if a consumer was to create an
repair organizations and companies selling con- alternate credit file using the EIN or PIN method
sumers both pamphlets and services giving them they better be darn sure they never have a prob-
a brand new credit file under the pretense it was lem paying their bills. If they do, they most likely
100% legal and in some cases even claimed it would find themselves in a courtroom with a case
to be a “government sponsored” program! involving credit fraud. Which brings me to my next
topic.
The con was simple. Companies would target
consumers with bad credit and offer to create a Jay Peters is the Marketing Director for Con-
brand new credit file for them by substituting an sumer Publishing Group which publishes the
Employer Identification Number (EIN) for their Credit Secrets Bible (in print since 1994). To re-
Social Security Number (SSN) along with a new ceive Free Credit Tips including “How To Make
address. EIN’s were obtained from the Internal Yourself Identity Theft PROOF in 60 minutes or
Revenue Service on behalf of the consumer. With less For FREE!” visit their website: http://
the EIN and a new address the companies would www.Credit-Secrets-Bible.com
either have the consumer apply for credit with the
“new information” or the company would apply © Copyright 2007 by Jay Peters
for them. When the creditor would run the appli-
cation it would automatically create a new credit ******************************************************
file because the computer would be unable to find NOTE TO PUBLISHERS: Permission is
the consumer in the database due to the new granted by Consumer Publishing Group for pub-
address and SSN. lishers to reproduce this article (in full or in part)
provided website address www.Credit-Secrets-
While there is some dispute among privacy Bible.com is retained.
experts as to whether or not this is legal, the FTC’s ******************************************************
actions at the time were not up for debate. Com-
panies were advertising and luring in consumers
in order to have them falsify credit applications
by providing new information such as their ad-
dress and SSN in order to obtain credit. This
was a direct violation of the Truth in Lending Act
(TILA) and worse yet, the companies were ad- .
vertising to consumers that this was 100% legal
and in some cases claiming it was a government
sponsored program. As you’ll hear me say often
“In reality, nothing could be further from the truth”.

Privacy experts will argue that using an EIN or

9 digit PIN (simply a made up number) in place

Copyright 2007-2012
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 FREE BONUS
CUSTOMER
APPRECIATION
NEWSLETTER
ON NEXT
PAGE!

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Consumer Publishing Group
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 Consumer Publishing Group
Customer Appreciation Newsletter!
Volume 12, Issue 1, 2007

What’s Inside
“Lady Liberty.” This Issue...
Consumer Publishing
Group
18124 Wedge Pkwy
Ste 700
 THREE ways Americans can legally obtain a NEW social security
Reno NV 89511-8134
number (you can thank Bill Clinton for one of them!)
Internet Orders:

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Bible.com
you do (and DOUBLE you credit card limits in no time flat!)
WHO WE ARE...

 How to legally bribe your creditors to CLEAN your credit report for
Consumer Publishing
Group is a publishing,
research and educa-
tional company that has
been in business since
you (so simple, you’ll wonder why you never thought of it!)
1994. Therefore, you
can count on us to be
here in the future and
bring you the most up-
 How to lower your current payments on your debt by up to
to-date insider
information available,
50% practically overnight (two methods that can be a life-
most of which our staff
creates, tests and is saver!)
published and
distributed first to
clients like yourself.
 The single best way to protect yourself from identity theft for FREE
We are also aligned with
National Credit before it ever happens (and get all three of your credit reports for
Educators (NCE). NCE
teaches the newest free to boot!)
insider concepts and
techniques when
training their certified
Credit Coaches to help
other consumers get the
 Over 10 different ways to get your student loan debts legally
most out of their credit
restoration and score
CANCELLED by the U.S. Government (other than death,
building efforts. You
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qualify for only one and you win!)
newest by contacting
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 Thinking about divorce? 3 critical steps to preserve your credit
Educators.com
BEFORE you file (something most people wind up learning when
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and all the amazing

 Why using a credit repair company or law firm can actually

benefits such as live
teleconference calls.

To apply visit: make your credit WORSE (and do irreversible damage!)

www.Advanced
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 And much, much more... (fasten your seatbelt!)
 How To Raise Your Credit Score you have that are not being reported to the credit bureaus.
Quick & Easy In As Little As 30 Days!
Contact the creditor and request they report the account
to all three credit bureaus. If they'll do this, you now have a
First of all, if you want to raise your credit score in a
brand new account to help raise your credit score and qualify
short period of time find out if there are any credit accounts
for additional credit. Some examples of
this would be your utilities, auto loan, in-
surance and any furniture or appliance
Who Else Wants To Earn Up To financing that's not getting reported.

$103,608 in EXTRA Profit This Year… A much easier method is to become

an authorized user of a friend or family
Starting in Just 10 Minutes? members credit card. By doing what's
known as piggybacking or pyramiding,
From: Jay Peters
you will pick up that persons credit and
Dear Entrepreneur, history. Just make sure they use credit
responsibly and have yourself removed
If you’ve got a current online business and an email prospect/customer from the account after 90 days of report-
list… then I can show you how to earn up to $103,608 in EXTRA profit this
ing just to be on the safe side.
year… starting in just

10 MINUTES… Another commonly used method is

opening a saving account in Bank A, de-
The “Credit Secrets Bible” has been one of the national top selling positing $500 or $1,000 into it and tell-
consumer credit courses in the United States since 1994. In late 2006 it
ing your banker you want to borrow
was launched in eBook form on the well-known www.Clickbank.com plat-
form and… in less than 90 days… it became the number one Con- against it to build your credit. This
sumer Credit Course on clickbank.com (earning a small fortune for it’s method is not as practical as piggyback-
affiliates in the process). Why? Well, there are many reasons but only ing but has been used successfully for
one that matters to you and that is… decades. You can then take that same
amount of money in Bank A and go to
70% COMMISSION
another bank (Bank B) and repeat the
The “Credit Secrets Bible” did not become number one on process all over again.
clickbank.com in because it’s the best credit restoration course on the
market (though it is). And, it didn’t become number one because it’s been Of course, there are many banks who
around the longest (which it has). It became number one because of the
offer easy to get unsecured cards with a
commission affiliates like you are paid. We pay MORE than any other
credit product on the entire clickbank network at 70% commission. For credit limit of $300, but after all the fees
you this translates into… the credit card company charges you're
lucky to have $20 left of available credit.
$43.17 Per Sale! So, in effect you've been approved for
an unsecured card that's almost 100%
Obviously, time is of the essence as this opportunity is not only hot…
but more importantly fresh and new. Since credit is a general topic with secured. Avoid these typed of offers like
mass appeal, many companies like yours will continue jumping on board the plague! They're a complete rip-off.
to promote this. As they do, the profitability available tomorrow will still be
great… but not anything like what it is today for those acting now. We’ve The most practical method is the use
seen affiliates churn out over 200 sales in their first month which equates
of a merchandise card. This is by far the
to $103,608 in EXTRA NET PROFIT annually… just for sending an email
and then building that email into their AR sequences. Not bad for 10 cheapest and best tool to add primary
minutes work? Just go to the link below for more information. accounts to your credit file - if they re-
port to a credit bureau. Merchandise
http://www.CreditSecretsBible.ORG/affiliate/ cards are highly misunderstood and mis-
judged by most of the credit community. We have thou- firms don't know this or they ignore this fact. They only
sands of clients who have gone to our merchandise card have so much time to work on your credit report. They
affiliate and shot their credit scores through the roof be- usually figure if they can get something derogatory deleted,
cause they followed our experience and got the only mer- their client will be satisfied and continue paying fees, re-
chandise card we are aware of that reports to the credit gardless of what happens to the score. Little do their cli-
bureau. There's no credit check, no annual fee, 0% inter- ents know that their scores could actually be going DOWN!
est and the account looks and acts just like a major credit
card on your report. What more could you ask for? For
24 hour recorded information call 1-801-350-3999.
The “Special Phone Number”
The Legal Way To Claim To Make you can call
to get the TRUTH about all those ads
A Lot More Income Than You Do offering you a guaranteed
And Double Your Credit Limits! $5,000 to $10,000 Credit Card with
NO CREDIT CHECK
All credit card applications ask for your Social Security (find out what’s a rip-off and what’s not!)
Number. They also ask for your income, which can deter-
mine how much credit you're approved for. The key is
they usually ask for your household income. That means For details call our 24 hour Recorded
you can add up how much you, your spouse, parents, chil- Message at: 1-801-350-3999.
dren and anyone else in your house earns as your total in-
come. This will make you a much more attractive credit
applicant. Be sure to never understate your income be- In some cases, these companies dispute good accounts er-
cause this can be one of the most important factors if you roneously and they get deleted - forever. For more infor-
have no credit. mation on how to select the best credit repair company or
professional, please see the bonus reports in the Credit Se-
While we're on the subject of credit card applications, crets Bible!
another huge plus is if you have a checking AND a savings
account. If you don't, get both. Everyone should be saving Three Ways You Can Legally
money every month, even if it's just $20. I have found that
if you already have a checking account with the same bank, Obtain A Second SSN
you can usually get the manager to waive the monthly fee
they charge when your balance is too low. You can even Thanks to ex-President Clinton, you could be eligible
get them waived on checking accounts because the bank- for a second Social Security Number (SSN). This is great
ing industry is becoming very competitive, to the tune of news for some consumers
even offering you money to open an account. who qualify. The Social Secu-
rity Administra- tion (SSA)
may elect to change a con-
Why Using A Credit Repair Company Or
sumers SSN for a variety of
Law Firm Can Make Your Credit Worse! reasons. The most com-
mon of which is if you've been harassed or abused by an
This all goes back to the most common misconception ex-spouse or others. You must have ample evidence to
most consumers share about their credit reports, and that's convince the SSA, such as police reports, and if possible
they need a "perfect" credit report. However, a perfect an active protective or restraining order against the indi-
credit report is NOT always the highest scoring. There are vidual. It's also a good idea to file a complaint with the
some derogatory accounts you should actually leave on your FTC at www.consumer.gov/idtheft and retain whatever re-
credit report! Why? If they get deleted your score can sponse to your complaint they provide. The more evidence
actually go down. Most credit repair companies and law you have, the more likely the SSA is to approve your change
of number request. If you are going through a divorce, and portant you don't go into default because you may not be
you're a woman, the best time to request your new SSN is able to qualify for student loan cancellation. Here are the
after your divorce is finalized and you get a name change. criteria to qualify:

Another common reason is identity theft. If someone 1. You become totally and permanently disabled.
has assumed your credit and it's impossible to sort out the
mess you may be eligible for a new SSN. In this case, you 2. You (the student) die.
would want to fill out an Identity Theft Affidavit (see the
Credit Secrets Bible) and call that in to your local police 3. You serve in the U.S. Military.
department for a police report. Sometimes they are reluc-
tant to file a report, so advise the officer the Social Security 4. You are a full-time elementary or secondary schoolteacher
Administration needs it at the hearing for your SSN change in an area that is designated as low income.
request. If you can secure any other documentation as ad-
ditional evidence, such as credit reports, letters from credi- 5. You are a full-time provider of early intervention services
tors, copies of judgments, etc., then do so. Just make sure for the disabled.
you have ample evidence that you are not using the number
change request as a way to avoid legitimate creditors. 6. You are a full-time teacher in a field designated as a teacher
shortage area.
The third and final most common reason consumer's apply
for a second SSN is a religious objection to the numbers 7. You are a full-time employee of an agency serving low
'666' because of the biblical representation as the "Sign of income, high-risk kids and their families.
the Beast" (Revelations 13:18). This reason is limited to
three sixes in a row, even if they are separated by hyphens 8. You are a full-time nurse or medical technician.
(i.e. 928-66-6230). It does not apply to scattered 6's (i.e.
962-06-2236). Some consumers have a deeply held su- 9. You are a full-time law enforcement or corrections of-
perstition to the number '13'. You need only be convincing ficer.
these numbers are disadvantaging you, such as causing se-
vere economic hardship. 10. You are a full-time staff member in a Head Start Pro-
gram.
To apply for a new SSN, please contact your local SSA
office for more information. 11. You are a Peace Corps of VISTA volunteer.

How To Get Your Student Loan 12. Your school closed before you could complete your study.
Cancelled By The U.S. Government!
13. Your school falsely certified that you were eligible for a
student loan.
It's estimated that about 60% of graduates have student
loans due to the rising cost of a college education. There
To apply for cancellation call the Department of Educa-
are several different types of student loans, so it's important
tion Debt Collection Service at 1-800-621-3115.
to determine which type you have. Some of from private
lenders, while others are from the Federal Government.
Some private loans are guaranteed by the government, and Why You Should NEVER
some are not. However, most student loans do not have to Give Your Bank Your
be paid on until about 6 months after graduation. Mothers Maiden Name!
In this article we're not going to talk about deferment, When banks ask for your mothers maiden name, some-
consolidation or forbearance. We're going to talk about how times it's used as a password. But, your mothers maiden
you can qualify for student loan cancellation. It's very im- name can be found by almost anyone with a computer. In-
stead of giving that out, make up a unique password. Do How to Make Yourself Virtually
this with all of your credit cards. Your Social Security Num- Identity Theft PROOF in
ber (SSN) is also something that's easy to get with a com-
puter. Most consumers have given it out hundreds of times. 60 Minutes or Less!
That's why you should never use the last four digits of your
SSN as a Personal Identification Number (PIN). Con- The FBI has called it “The fastest growing crime in
sumers need to be more proactive to avoid identity theft. America.” Close to 10 million Americans every year are
victimized by it and the costs are estimated at 50 billion
Another great technique is to put a fraud alert on all dollars annually. Many criminals get off easy while the vic-
three of your credit reports. Be sure to include your phone tims spend years working to restore their damaged credit
number, so that when you go to apply for credit, the credi- reports and reputations. Worse yet, there seems to be no
tor can call you to verify you are the one actually applying end in sight.
for the credit. A cell phone is the most preferable phone
number to use. “The popularity of the crime is simply growing faster than
the solutions to stop it,” many experts conclude. The task
You can extend a fraud alert with all three credit bu- of recovery is so time consuming and tedious, multiple states
reaus by mailing in a written request. To save yourself time have resorted to creating “Identity Theft Passports” for vic-
and trouble, notify them you have already attempted to get tims in an attempt to ease the pain for them as they endure
a police report but were unable to. For more information the lengthy and frustrating clean up process.
on the fraud alert please see the Credit Secrets Bible!
By the end of this article I will share with you the secrets
of making yourself virtually identity theft proof in 60 minutes
Thinking About Divorce?
or less (for free). I use the term “secrets” because less than
3 Critical Steps To Preserve 1% of the country are aware of these techniques (let alone
Your Credit Rating Before You File! practicing them).

If you are heading for divorce, take the following steps: If Americans took these preventative steps up to 99% of
all identity theft would be eliminated. However, “why” this
1. Before filing for divorce, close all joint beneficial approach is not being made common knowledge
accounts and try to get them switched to in the mainstream media is something I will not disclose in
personal accounts with only one person re- this article (more on that another time). For the moment I
sponsible. If that is not possible, try paying believe the biggest crime one can commit is to not share this
the account off. At least if the account is information with their friends and family (by the end of this
closed, neither spouse can run up the bill article you will understand why).
after the divorce.
Unlike other authors covering this subject I will not insult
2. Check each spouse’s credit and estab- your intelligence by sharing common sense tips like “Don’t
lish it before the divorce. Apply for your own cards and carry your SSN Card or ATM PIN# in your wallet or purse”
loans before the divorce so you can list both spouses’ in- or “Keep all data sensitive documents like credit card and
come on the application. bank statements locked up in your home or office”. This is
elementary advice at best. The key to protecting yourself
3. If your ex has messed up your credit after divorce, there from identity theft is to look at what the masses are doing
is not much you can do unless you want to pay off those and then do the opposite (to say the least).
accounts. If you wait seven years, however, those accounts
will automatically come off your credit report. In the mean- Almost 70% of Americans are now shredding all their mail
time, continue to pay your bills on time and strengthen your and documents and many are even subscribing to credit moni-
credit. Eventually your positive efforts will outweigh the nega- toring services or buying identity theft insurance in an at-
tive.
tempt to protect themselves from becoming victims. While If you’re one who feels this is paranoid thinking let me tell
this is better than doing nothing it’s a far cry from TRUE you about Amy Boyer. In 1999 Miss Boyer had an old high
security. school classmate (Liam Youens) come back into her life many
years later. Mr. Youens obtained Amy’s SSN and other
Study The Past To Predict The Future personal information after paying Docusearch Inc. $150.
After Youens shot Miss Boyer to death he then turned the
Contrary to popular belief statistics show the majority of gun on himself. Today the company tells visitors to its web-
identity theft does NOT result from the internet as most con- site that “not all searches are available to the public” and
sumers have been led to believe. In fact, less than 10% of some are reserved for the investigative and legal industry.
identity theft cases (where data compromise can be deter- How’s that for homeland security?
mined) originated online. In almost 50% of cases consum-
ers are the ones who detect the breach. In nearly 40% of With this “different” approach we break down identity theft
cases the criminal was someone who was in close contact into two distinct categories. 1.) Basic Identity Theft, and 2.)
with the victim (friend, relative, neighbor, coworker, in-home Credit Hijacking. By definition “Basic Identity Theft” is when
employee, waiter/waitress or financial institution employee). the perpetrator steals your identity and then uses it to obtain
In then end, nearly one third of identity theft cases come NEW credit accounts for their personal gain. “Credit Hi-
from a stolen wallet/purse, checkbook or credit card. jacking” falls under a criminal stealing your identity in order
to access and use your EXISTING credit accounts. Each
More interesting, the age of the primary victim has low- type of fraud is different and therefore so is your plan of
ered. If you are between the age of 25 to 34 you are now defense.
the largest target for the crime (65+ has become the small-
est). The bad news is that while identity theft nationwide is BASIC ID THEFT DEFENSE: The best proactive de-
on the decline (8.9 million victims last year down from 9.3 fense against basic identity theft is through the placing of an
million in 2005) the dollar amount per victim is going up “Initial Fraud Alert” on all three of your credit reports. This
($6,383 last year, up from $5,885 in 2005) and so are the Fraud Alert accomplishes three important factors:
number of hours victims spend cleaning up the mess (40+
hours last year, up from 28 hours in 2005). 1.) Your name and personal information can no longer be
sold by the credit bureaus to ANY third parties for any mar-
We’ve all heard the saying “An ounce of prevention is worth keting purpose (i.e. credit card offers, loan solicitations or
a pound of cure.” Yet, no one is practicing it in the pandemic credit pre screenings). 2.) No one can be approved for
of identity theft. Credit monitoring is nice but only 11% of credit with your personal information until the creditor per-
consumers ever catch identity theft through this means. Iden- sonally calls you at the telephone number you list on your
tity Theft Insurance (according to many experts) is even more consumer credit report. And, 3.) Requesting this initial fraud
of a hoax. A product marketed by playing on the fears of alert entitles you to a free copy of all three of your credit
American consumers which does nothing more than assist reports (one copy from each of the three major credit re-
them in cleaning up the mess only AFTER their identity has porting agencies). Please be advised that this is an “Initial
been stolen. Fraud Alert” which lasts only 90 days. To extend the fraud
alert and obtain the above mentioned benefits for 7 years
you will need to write to each credit bureau at the address
A Different Approach provided within your initial fraud alert confirmation letter
(Note: It is likely credit bureaus will make the extended alert
The following is a completely different approach to pre- harder to obtain as a great deal of their revenue comes from
venting and protecting yourself from identity theft. It is based the third party rental and sale your information).
on the reality that we live in a world now where there is zero
privacy of personal data. Meaning that your name, address, CREDIT HIJACKING DEFENSE: Most online mer-
phone number, social security number, date of birth (even chants now utilize a security feature known as “Address
your mothers maiden name) can be obtained by ANYONE Verification Service” or “AVS”. AVS is a security feature
for a fee. for online merchants allowing them to only authorize credit
card transactions for merchandise to be shipped to the same real joke will be on them. If they try to open a new credit
address which appears on the consumers credit card billing account anywhere in the country the creditor is going to have
statement. If the address does not match that of the credit to call YOU at the phone number listed on your report be-
card billing statement the transaction will automatically be fore they can be approved and it’s GAME OVER. If they
declined. try to hijack your credit by changing the address on your
credit accounts they will be asked for not only the last four
In other words, if someone gets your credit card num- digits of your SSN and mother maiden name, but also your
ber, expirations date and CVV code (the three digit code on personal security code which they will NOT know and again,
the back of the card) the only way a transaction can be it’s “GAME OVER.”
authorized online is if the merchandise if shipped to the
SAME address that your credit card billing statement is cur-
rently sent to. This is what makes credit hijacking so dan-
More on the ‘KO’ method to
gerous. When a criminal hijacks your credit they call up the eliminating debt collectors!
banks (posing as you) and change your address on your
credit cards with your personal information (i.e. last four of Let me ask you a question. Can you name one private
SSN and mothers maiden name) as if you were moving. company who can LEGALLY force you to do business with
They then proceed to order thousands of dollars in mer- them to your financial harm (credit bureau reporting, judg-
chandise (online or over the phone) to be shipped to the ments, garnishments, liens, levies, etc.) with or without your
“new” address. Because they changed “your address” on consent? Without a contract that’s legally binding? With
your credit cards they will bypass the AVS security from your consent because of fear of economic harm? No pri-
online merchants and the charges will be approved. vate company can force anyone to do anything unless there’s
a contract to enforce. The entire collection industry, includ-
The only real defense against credit hijacking is to estab- ing the attorney debt collectors, are skating on nothing but
lish a personal security code with all your bank accounts “thin ice.”
and credit cards. This is a form of security which goes be-
yond your SSN, zip code, date of birth or mothers maiden The more you understand how the collections game
name to give you a whole new tier of personal security. This works, the less they can invade your privacy and coerce
is a unique number or group of letters and numbers which you out of your hard earned money.
you create and give to every credit card provider you have.
For example. The number could be as simple as In my opinion, nobody should ever pay a debt collector,
“JACOB2801” which is a combination of your best friend unless they have made an agreement or contract with them
as child and the numerical address of the home you lived in to settle the debt. Even so, if a consumer has done this
growing up. accidentally, the debt collector has most likely used decep-
tive collection practices in not telling the consumer they might
By establishing this auxiliary passcode with all your credit be entitled to do business elsewhere. Maybe there is a more
providers no one will be granted access to your accounts friendly debt collector down the street. Maybe the con-
without providing it to them. Since you are the only one sumer would rather work with the original creditor, instead.
who knows it and it is non public it is truly secure. I have yet
to find a credit card company which will not allow you to In not telling consumers the full truth, most contracts be-
create a such a passcode and added layer of security. tween debt collectors and consumers are fraudulent. That
Summary... means once the fraud is brought to light, the contract is un-
enforceable.
So now with the initial fraud alert established on your credit
Blacks Law Dictionary defines one activity (I want you
reports (and later extended) as well as the personal security
to guess what it is) as, "The obtaining of property from an-
code set up with all your bank and credit card accounts,
other induced by wrongful use of actual or threatened force...
you are virtually identity theft proof in under 60 minutes for
Or fear..."
free. Sure, someone can always “steal” your identity but the
If you can read and write at the 7th grade level
then I'll show you how to earn up to...

$7,000 A Month With A Voice Mail Box

And
You Never Talk To Anyone...
"It's one thing to "sell" a moneymaking system, but it's something else when you STILL use it yourself. Why
would I share a proven (and profitable) secret after using it for over 12 years? Read my story and you'll
find out..."

Simply go to: http://www.VoiceMailMillions.com/free

You’re going to learn...

G How to start part-time with under $500 and pyramid your profits into an $84,000 annual income!

G Why selling the "Credit Secrets Bible" C.O.D. is the best way to fire your boss and sleep in
for life!

G The Confidential "Credit Secrets Bible" C.O.D. Marketing Structure Flow Chart!

G Seven different ways to sell the "Credit Secrets Bible" and make up to $7,000 a month!

G How to make a "Financial Killing" during the coming recession with classified ads in newspapers (how
to best choose the papers that will make you money!)

G And much, much more! Is this for you?

If you've always known deep in your heart you could be successful if you only had the right
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If you feel like you've been searching all your life for an opportunity to replace your income
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For more information visit...

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 It’s called EXTORTION. Any unlawful attempt to ob- lost your job, or you’re going through a divorce, or for
tain your property should be considered attempted extor- whatever reason you cannot meet your monthly obliga-
tion. Please see the Credit Secrets Bible for more informa- tions. Ask the creditor if you can make half payments
tion on how to use the ‘KO’ method to your advantage! temporarily until you get back on your feet. Many credi-
Don’t let these private companies push you around. The tors will agree and allow you to pay LESS than what you
usually have no legal right to force you to do anything. thought you were required to pay to keep the account
current with no late pays.
How to lower your current debt
If your creditor will not accept any type of partial pay-
payments on your debt by ment, ask them to waive the interest, or accept an interest
up to 50% only payment. In some cases, this could be a large chunk
practically overnight! of your bill. In either case, you’re basically stalling the
creditor until you get back on your feet in an attempt to
The first method is quite simple. All you need to do is avoid any late pays or an eventual charge-off. With a
call you creditor, and explain your situation. Maybe you mortgage, you can also use this similar techniques...

How To Start Fixing Your Credit FAST...

With The Push Of A Button!
If you’d like to avoid the time consuming and frustrating process of typing credit repair letters, then here’s a
simple and painless solution for you. The solution is on one computer CD disk. Pop this disk into almost any
computer and your letter writing will be as ”easy as cake”! You’ll get all of the “hard-hitting” credit repair
letters contained in the Credit Secrets Bible, including...

 Powerful, highly-effective credit bureau dispute letters that can eliminate bankruptcies, judgements, tax liens, charge-
off’s, repossessions, and more!
 Debt negotiation and “restrictive endorsement” letters you can use to settle your debts and erase bad credit for as little
as .27 cents on the dollar!
 All the letters you need that can nuke collection agencies and attorney debt collectors off your credit report and out of
your life - forever!
 ChexSystems dispute letters that can remove negative banking history so you can start doing business more conve-
niently with checks and debit cards!
 Easy-to-print copies of the Free Annual Credit Report Request form and the ID Theft Affidavit! Get your credit reports
fast and start printing and using this special form to get quick results!
 This computer disk is also available along with tons more insider credit information (they wouldn’t allow us to publish)
in the Gold Member package!

It’s called the ULTIMATE Credit Letters Disk! It’s like having your own personal secretary doing the hard
work for you! Picture this... You’re in front of a computer, and you can choose any letter you want. Simply type
in your name, the creditors name, and any other relevant information. Then, hit the print key. It just doesn’t get any
simpler than that!

The ULTIMATE Credit Letters Disk is the “Lazy Man’s way” to avoid the time consuming and frustrating process
of typing credit repair letters. After all, why should you have to suffer through all that hassle when you can
do things the EASY way! And, as a Credit Secrets Bible customer, you WON’T pay the $49 dollars everyone else
has to pay. If you order now, you’ll get the ULTIMATE Credit Letters Disk for the ridiculously low price of $39.85
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To order visit http://www.creditsecretsbible.com/ultimate/

 How to Prevent Your Home
From Going Into Foreclosure!

The same goes for mortgages! Having trouble keep-

ing up with those payments? Every lender has a “loss
mitigation department.” They don’t advertise this fact to
most consumers. If you are in danger of losing your home
or falling behind on payments, contact the lender and ask
for the name, phone number, and address of the loss miti-
gation department.
Now, there are two things you can do, unless you’re
too far behind. One is to ask the lender (in writing) for a
forbearance on your mortgage. That means you are ask-
ing them to suspend your mortgage payments for a spe-
cific period of time. Of course, interest will accrue but
you may be able to buy some time until you can get caught
up and resume normal payments.

You can also ask for mortgage “reconstruction.” Let’s

say you are behind on 3 payments. You can ask the lender
to add the total of those payments to the loan and allow
you to resume normal payments in accordance with the
timing of your budget. Lenders are required by LAW to
accommodate consumers who fall behind (or are about to
fall behind) on their mortgage payments, so put all of your
communications in writing and send them as the Credit
Secrets Bible instructs in the 2007 edition.

However, you will need to contact your mortgage

lender and ask them where to mail your correspondence.
Again, you should only correspond with those in charge
of “loss mitigation.” Any other department will probably
have no idea what you are talking about.
 The
"Credit Secrets Bible"
Wholesale Dealer
Program

Because of the awesome life-

changing power of the "Credit Se-
crets Bible" over the last 12 years,
many satisfied customers have writ-
ten in wanting to become C.S.B.
Dealers so they can share this knowl-
edge with others less fortunate. As
a result, the C.S.B. Wholesale
Dealer Program was created. If
you've ever dreamed of opening up
your mail box everyday only to find it
filled with checks and money orders
from across the Nation, the NEXT
section may be the most impor-
tant section you'll read... It's
proved to be the case with other cli-
ents in the past and it could very
well prove to be the case with you!
 Mail Order
Breakthrough!
Dear Entrepreneur,
(If not now, soon...)

I have a personal question to ask; do you hate your job? I mean,

do you really HATE IT? If the answer is "YES!", than this will be
the most important letter you will EVER READ.

My Personal Story
My name is John Bentley and I used to wake up every morning and
go to a job I hated. I say "used to", because things are different
now. A LOT DIFFERENT, because like you, one day I finally "woke up"
and decided there had to be MORE TO LIFE than working a boring job
all day.

I was sick and tired of being "Sick and Tired". I used to be a

construction worker in Montecito, California. It was there that I
toiled away 6 days a week for my employer, working on some of the
finest homes in the country, many of which were featured in national
publications such as Better Homes & Gardens.

The point I want to make is ALL the people we worked for were
VERY RICH. They all drove brand new BMW's or Mercedes Benz, wore
the finest jewelry and dined at the finest restaurants. Since they
were always taking exotic vacations, full-time live-in nannies were
a must.

Sometimes I wondered who the kids would grow more attached to;
their parents or the housekeeper? Everyday it would EAT ME UP
inside how these "Rich People" made so much money, yet worked no
harder than me! Meanwhile, I was "Busting my Ass" 55 hours a week
and GOING NOWHERE FAST! Can you relate? I would always tell myself
"There has to be a better way", and I was determined to find it...

I Was A Sucker
(go to page 2)
 This was when I began researching ways to become Wealthy. If
someone was selling a way to get rich overnight, I had to have it.
When I saw an ad I sent them whatever they asked. Most of them just
asked for $30. I was a sucker for "Get Rich Quick" ads because I
really wanted to get rich.

It didn't matter who you were, if you had an opportunity that

made even a "lick of sense" I was on it like white on rice. One of
the first Get Rich Quick programs I ever bought was titled "Making
$500,000 a Year in Mail Order" by David Bendah.

This was a book on how to make big money FAST selling information
by mail. Except in my case the money wasn’t big and it definitely
wasn’t fast. I spent the next several years moonlighting on
projects I thought would make money. Most of them lost money, some
broke even and a few actually made money (not enough, though).

I Wanted To Quit
Despite all the crazy "Get Rich Quick" schemes I lost money on
over the years, I never quit. I never gave up on my dream (and you
shouldn't either). I would love to tell you it was because I wasn't
a quitter, but I would be lying to you if I said that...

You see, I've quit just about everything I've ever started in my
life. I never graduated from high school and I've never held down
a job for more than 7 months. I didn't get my drivers license until
I was 19 and I still don’t know how to whistle or blow dry my hair.
I didn't even have my first girlfriend until I was 25! Some people
used to call me a loser and it hurt - only because [at the time] I
was stupid enough to BELIEVE THEM!

The only reason I didn't quit on my dream of being my own boss

was because I didn't have anything to quit to. You see, I wasn't
fortunate enough to have rich parents (unlike some of my friends).
However, that didn't stop me from achieving my dream of self-
employment and it shouldn’t stop you either...

The Great Life

Imagine... Never having to wake up in the morning to the annoying
sound of an alarm clock (a.k.a. electric rooster). Imagine...
Being your own boss and never having to take orders from ANYONE
(take a nap whenever you feel like it). Imagine... All this and
earning TWICE the income working only 25 hours a week from home!

(go to page 3)
 Do you believe this is possible? All you have to do is believe
and I can show you how others just like you are doing it - everyday!
How do I know this? Because my life today is EXACTLY as described
above. It's even hard for me to believe sometimes...

I haven't been "alarmed" by an alarm clock in ages. Every

morning I wake up the way God intended; when the bed rejects me!
Does the thought of firing your "BOZO" boss and waking up naturally
every morning appeal to you?

The Big SECRET Revealed

This incredibly Wealthy laid back life-style can be yours, too,
because (for a very limited time) I am going to teach a small
handful of ambitious young men and women EXACTLY how to create it.
If you are fortunate enough to join us I will take you by the hand
step-by-step and show you the way to personal freedom.

I’m going to reveal to you a Mail Order Breakthrough. You won't

learn about this breakthrough at any college or university and you
definitely won't hear about it from your boss or the president of
the company you work for. No way. Your boss wants you to stay right
where you are. Hey, we both know that! If you had to figure out
this breakthrough on your own it would take you at least 5 years (it
took me 7 - but let’s face it, I’m a little slow).

This Mail Order Breakthrough is the most AMAZING thing in the

world. It's also the most difficult thing to figure out (unless
you're blessed enough to have someone teach you from their experi-
ence). Imagine receiving checks and money orders on a daily basis.
This Mail Order Breakthrough can literally transform your mail box
into “Golden Egg Laying” goose!

What This Breakthrough Is NOT

In case you're wondering, this breakthrough has nothing to do
with mailing catalogs or chain letters and has ABSOLUTELY NOTHING
TO DO with any ridiculous multi-level marketing business (I wasted
over 3 years of my life on MLM - you’ll laugh at MLM once you try
this!).

Since there’s absolutely ZERO face-to-face selling, telemarketing

or special training required, you WON’T need any business experi-
ence. You WON'T need any credit. However, you WILL need patience
and a desire to learn and... Succeed!

(go to page 4)
 What This Breakthrough Is...
What this breakthrough is, is amazing! In a matter of weeks,
this method of making money can have you receiving envelopes from
across the country-FILLED WITH CHECKS and MONEY ORDERS for $73.60.

Believe me, it’s the most amazing “Cash Cow” you’ve ever seen!
The product you will be marketing is a time-tested and a PROVEN
winner. I don't need to convince you of this because you’re holding
it in your hands - it's “The Credit Secrets Bible!”

Guaranteed To Work
It's one thing to sell a moneymaking system, but it's another
when you actually use it yourself. That's why this system is
guaranteed to work.

You will be provided with the same PROVEN product. The same
PROVEN ads. The same PROVEN voice mail system. The same PROVEN
sales letters. And most importantly, the same PROVEN marketing
formula. All the difficult creative work has been done for you.

All you have to do is follow the system. This mostly consists

of placing ads (each one takes less than 10 minutes) shipping C.O.D.
orders and then sitting back and collecting the checks and M.O.’s!

It's the closest thing to winning the lottery! As you know, "The
Credit Secrets Bible!" retails for $75.60. Your wholesale cost is
only $12.75 to as little as $7.75 a copy! This gives you an unheard
of profit margin of up to $67.85 on every $75.60 sale!

 If you've always dreamed of owning your own successful direct

marketing business that floods your mail box with checks and money
orders on a daily basis - then this system is for you!

 If you've always known deep in your heart you could be success-

ful if you only had the right product - then this system is
definitely for you!

 If you feel like you’ve been searching all your life for an
opportunity to replace your income and tell your boss to “Take This
Job and Shove It!” - then this system is ABSOLUTELY, POSITIVELY for
you!

Here’s just an example what your MONTHLY INCOME

(go to page 5)
could be like with this system:
THIS IS WHAT OUR MONTHLY INCOME COULD BE LIKE!
Month 1 $412.74
Month 3 $1277.23
Month 5 $1608.97
Month 7 $2212.54
Month 9 $3068.12
Month 11 $4250.50

Month 13 $5,175.00 or More Thereafter!

The best part about this system is that YOU SET THE AMOUNT you
want to make and then relax while your checks and money orders come
in week after week-like clockwork!

Why Am I Willing To SHARE

My Moneymaking System?
You may be wondering why I’m willing to share my moneymaking
system? To make money, of course. Much like a McDonalds franchise
I've designed this program so for every $1000 you make, I will make
about $200. It's a WIN-WIN situation. The more you make, the more
I make - make sense?

Please Don’t Hate Me For This...

I want to prove to you that my system works. So, I'll show you
how to prove it to yourself-in the next 30 minutes or less! Here's
how: go down to your local magazine stand or grocery store and grab
any publication you like. Or save a few magazines you receive in
the mail or have access to at the library.

Then, go to the back of that publication and examine all the

classified ads, paying close attention to their offers (you may
even see the ad you originally responded to!).

Finally, a few weeks or months later, go grab the next edition

of that publication and examine it again. You'll be surprised to
discover that a percentage of the ads you saw the first time will
appear again and again!

These ads are successfully making money for their owners, oth-
erwise they wouldn't be running over and over! The most important
thing you need to understand is that the people making money from
those ads (every month) are NO DIFFERENT than you!

(go to page 6)
 Freedom From “Occupational” Slavery
In my opinion, a job is nothing more than a form of slavery - with
a paycheck. You wouldn't let someone else tell you how to dress,
act or comb your hair, would you?

So why would you let someone else tell you when to get up in the
morning and how much you will be paid? It really doesn't make any
sense when just ONE ad in ONE publication could start the wheels in
motion to FREE YOU from this slavery - FOR THE REST OF YOUR LIFE!

I have two particular ads I have ran for over 5 years. They cost
$1600 per month. For the last 5+ years they have brought in (on
average) no less than $4,000 a month! Every month! Month after
month! Like clockwork!

I could sleep in for the rest of my life just from the earnings
of these two ads, and you could too! This is because I am going to
give you the EXACT SAME ADS and Mail Order Breakthrough I use.

Start Receiving CHECKS And MONEY

ORDERS In Your Mail Box NEXT Month
The most exciting thing about this breakthrough is that the
money can roll in FAST! How would you like to start receiving
$75.60+ checks and money orders made out to you next month?
With this breakthrough it’s possible!

Picture yourself pulling in hundreds of dollars a day in

checks and money orders from across the country, or just one
big fat internet commission check. Why? Because there are
thousands of consumers (just like you) who desperately need the
“Credit Secrets Bible” - why not let them order it from you? If
not, they’ll order it (eventually) from someone else!

Are you excited? You should be! Because there are over
20,000 different publications in the United States eager to
help you reach those new customers! (NOTE: If you don’t place
the ads you can bet your sweet fanny someone else will!)

It’s estimated there are now over 50 million people in the

United States who are adversely affected by bad credit. This
is your chance to help these people AND help yourself at the
same time! This is your opportunity to make thousands of
dollars with easy work marketing a PROVEN product with a PROVEN
track record. If you’re ready to double your income - keep
(go to page 7)
reading!

Exactly What You’re Going To Receive

If you’re looking to receive 500 pages of information, 16
hours of audio tapes, 8 hours of video tapes and a password to
some stupid “Members Only” website - then the C.S.B. Wholesale
Dealer Program is NOT for you!

As a Wholesale Dealer (if you’re accepted) the first thing

you’re going to receive is our Fast Start Training Manual.
It’s a short and sweet “Cut to the Chase” training program with
NO FLUFF and NO FILLER. It’s 90 pages of pure meat - ready to
eat! You’ll also receive a 60 minute audio program. The audio
quality is poor (sorry, just telling it like it is) but the
content will knock your socks off - guaranteed!

Your C.S.B. “Wholesale Dealer” Benefits

As a Wholesale Dealer there are major benefits you’re going
to receive. These benefits can make you a fortune when you
take action and act. Here’s just a handful of them:

You’re going to get the right to buy the “Credit Secrets

Bible” wholesale for starting at only $12.75 a copy. And, the
more you buy the MORE you make! Here’s a sample of how our
Wholesale Dealer pricing works:

10 courses = $12.75 per course - (your profit margin = $60.85!)

20 courses = $11.75 per course - (your profit margin = $61.85!)
50 courses = $10.75 per course - (your profit margin = $62.85)
100 courses = $9.75 per course - (your profit margin = $63.85!)
500 courses = $8.75 per course - (your profit margin = $64.85!)

As you can see, your profit margin is in the realm of

unbelievable! In addition to your Confidential Wholesale Dealer
Pricing you’re also going to receive:

 Proven Sample Classified Ads!

 Proven Sales Letters and Cover Letters!

 Proprietary “Profit and Loss” Ad Tracker Spreadsheets!

 Access to our “Proprietary Flat Rate” Voice Mail System!

(go to page 8)
 Notification to monthly “wholesale” specials and offers
for FREE shipping etc!

 Access to our online affiliate program at

www.CreditSecretsBible.com which pays out an unheard of 60%
commission on hard product delivery! We charge the cards, ship
the packages and send you monthly commission checks!

 1 hour of telephone consultation (a $200 value) to help

you get started right. Need help? It’s only a phone call away.
Remember, your success is our success!

What You’re Going To Discover

The only thing more exciting than what you’re going to get
is what you’re going to discover! If accepted as a new Whole-
sale Dealer here’s just a little of what you’re going to
discover in one evening:

 How to start part-time with under $500 and pyramid your

profits into a $84,000 annual income!

 Why selling the “Credit Secrets Bible” through this break-

through is the best way to fire your boss and sleep in for life!

 The Confidential “Credit Secrets Bible” Marketing Struc-

ture Flow Chart!

 Seven different ways to sell the “Credit Secrets Bible”

and make up to $7,000 a month!

 How to make a “Financial Killing” during the coming reces-

sion with direct mail magazines NOT on the newsstands ( how to
best choose the publications that will make you money! )

 The “One Day” that is best to test when using daily news-
papers (over 50% of your response will be from this day!)

 Why you should NEVER buy your ads by the week when using
daily newspapers (another one that can save you a fortune!)

 “Two Ways” newspapers and magazines will try and rip you
off ( don’t learn this one the hard way! )

 The difference between low “Cost Per Order” and low “Cost
Per Sale” (and why you need to know the difference!)

(go to page 9)
 Three “Magic Words” that can double the response to all
your advertising (this one is worth $1,000 alone!)

 A 375+ page directory of 14,000 U.S. publications!

 Five Secrets mailing list brokers DON’T want you to know.

Time Sensitive Offer!

As you can imagine, I don't want to share this breakthrough with
just anyone, therefore this offer is time sensitive. We know we
can’t advertise in 20,000 publications ourselves, so we’re “Sharing
the Wealth” with our independent C.S.B. Wholesale Dealers.

However, we have to look out for our dealers by NOT saturating

the market. Don't be offended in the event your order is returned
to you. If you’re serious-Clip and mail or fax the No-Risk Reser-
vation Form today!

If you're not satisfied with the package I guarantee you a fast

FULL refund. However, I cannot guarantee your order will be
accepted. Therefore, it’s in your best interest to order RIGHT NOW!
(Note: in the event you are not accepted your order will be returned
in full).

Unconditional 30-Day/$30,000 GUARANTEE

Because this breakthrough is unlike anything else out there
(giving you an unheard of profit margin of up to $65.85 on every
$73.60 sale) I am offering it for a limited time with an Uncondi-
tional 30-Day/$30,000 Guarantee. Yes, I said $30,000.

Here's how it works: order your C.S.B. Wholesale Dealer Program

today. Read the Fast Start Manual from cover to cover and then read
it again. Study this breakthrough from inside out. “Kick the
tires” and test drive it for up to 30-Days if you like.

If after studying all the materials and opportunity you don’t

feel you can earn (at the very minimum) at least $30,000, then write
a short letter why you’re unhappy and send everything back for a
FULL refund. You heard me right! I said a FULL refund - with a
guarantee like this acting today [fast] is in your best interest
(But remember, there are no guarantees you will be accepted. Will
the mark up we are giving people there is no shortage of people

(go to page 10)

applying!)

Your Moment Of Decision

Now is your moment of decision. This is where the DOERS and
“TALKERS” part ways. We can’t make you successful (no one can).
However, we can show you how to become successful.

How much longer are you going to dream about being your own boss
and providing a second income for you and your loved ones? How much
longer are you going to let them down - let yourself down? Or, worse
yet, how long are you going to keep “chasing rainbows” with those
ridiculous MLM games?

Personally, I can’t imagine why someone wouldn’t take advantage

of this opportunity? It’s as easy as A,B,C. A.) You saw an ad for
the Credit Secrets Bible and ordered. B.) You paid for the Credit
Secrets Bible C.) Now you have an opportunity to PROFIT BIG TIME by
selling the “Credit Secrets Bible!” yourself-USING THE EXACT SAME
MARKETING SYSTEM THAT SOLD YOU!

How much more convincing could you possibly need? It’s like
there’s THOUSANDS and THOUSANDS of dollars out there just waiting
to flow into YOUR MAIL box and all you have to do is place the ads!
You know the system works because it SOLD YOU!

Are you ready to wake up every morning to a mail box full of

money? Did you know if you had to pay a professional Copywriter to
create the entire marketing system you’re going to receive in your
C.S.B. Wholesale Dealer Package it would cost you over $15,000?

We’re talking about a $15,000 dollar marketing system you can

use to profit yourself! Your cost? Absolutely FREE with your
C.S.B. Wholesale Dealer Package!

I like people who are motivated to better themselves and their

loved ones. I also like people who know a good thing when they see
it and can make a decision to ACT QUICKLY. For these people (I hope
you’re one of them), I have a very special offer if you order within
the next 15 days.

$255 FREE When You Order Today!

$255 free. That’s right. When you order within 15 days [and are
accepted] you will receive 20 wholesale copies of "The Credit

(go to page 11)

 Secrets Bible" FREE with your Wholesale Dealer Program. This is a
$255 value - but it’s yours free upon acceptance (within 15 days!).

How Much Does The

C.S.B. “Wholesale Dealer Program” Cost?
At this point you must be wondering how much all this is going to cost?
First let’s talk about what it’s worth. 1.) You’re getting a system
that’s PROVEN beyond a “shadow-of-a-doubt”. Because you ordered from it,
you know it works! 2.) You’re getting a system that contains $15,000
worth of tested and proven marketing strategies over the last 10+ years.
And... 3.) You’re getting a system which is severely limited and NOT sold
to every Tom, Dick, Harry, Sue and... Jane.

With all this in mind (and much more) the price of the “C.S.B. Whole-
sale Dealer Program” is normally $798. However, since you have already
purchased the “Credit Secrets Bible” you can deduct $100 from the normal
price of $797 so your onetime investment is only $698. This is your chance
to help other people AND help yourself in the process (to the tune of
thousands of dollars a month!). Don’t act today... Act RIGHT NOW while
you’re still in control!

Sincerely,

John W. Bentley III

P.S. I cannot stress enough that this is a very time sensitive offer. There are no guarantees
you will be accepted. If you are not accepted your payment will be returned in full with our
regrets. Clip and mail or fax the Risk-Free Reservation Form RIGHT NOW! The sooner you do, the
greater your odds of acceptance will be!

P.P.S. In the event you are accepted I would celebrate the minute your package shows up. Why?
Because you essentially being handed on a silver platter one of the greatest Mail Order
Breakthroughs in history!

(Please photocopy this order form for your records. Credit Card orders may be faxed to: 1-801-720-7077. Include card number, expiration
date and SIGNATURE. Orders are shipped to CardHolders name, address and zip code ONLY. No exceptions!)

30-Day/$30,000 Risk-Free Reservation Form!

YES! OK Mr. Bentley, I’m game! Send me the “C.S.B. Wholesale Dealer Program” containing everything I need to
begin receiving checks and money orders in my mail box as early as next month! I understand as a dealer my wholesale cost on the
courses with CD’s will be just $12.75 to $7.75 a copy! Furthermore, I can review all the materials and opportunity if I don’t feel I can earn
at least $30,000, I can return it for a fast, FULL refund. On those conditions only, enclosed is my check or money order for $698 (checks
held for clearance) plus $20 S/H for a total of $718. I’m ordering within 15 days! Please include my 20 wholesale C.S.B. courses FREE
(a $255 value!). Furthermore, I understand acceptance is not guaranteed.

Full Name Email

Address

City State Zip Ph# ( )

Consumer Publishing Group (Attn: Wholesale Dept.)
Mail to: 18124 Wedge Pkwy Ste 700, Reno NV 89511-8134