For the last 6 years graduates of NAES (North American Educational Service) educated and assisted client with their Credit Card debts. Client have been able eliminate over $145 million credit card debt”. On an average of 12 to 18 months the debt is eliminated.
They have been asking the Credit Card Companies a very simple question” Show us the Money”. To be more accurate, prove to us that I have a loan with you. They are exercising their right to initiate a billing errors dispute per the Truth in Lending Act, Amendments
Fair Credit Billing Act 15 USC 1601.
We do not recommend that consumers do this on their own, though some savvy individual have done so successfully. It is important to have a clear view of the landscape before entering and that is exactly what NAES offers. This is a very sound legal, moral and ethical strategies.
p>At the center of the education offered by NAES to consumers burdened with Credit Card Debt is the right to dispute the accounting of their account(s) with the Credit Card Companies. This right in guaranteed by Contract Law and Consumer Law Click here for Fair Credit Billing Act(15 USC ß1601). and Click here Fair Debt Collection Practices Act (15 USC ß1692). For several reasons the Banking Industry ignores the full requirements of these laws, Contract Law as well as their own Banking Laws. This article focuses in on Truth in Lending Act, Amendments Fair Credit Billing Act 15 USC 1601.
Our experience over the last six years has been that when forced by Courts to produce documents verifying the Credit Card Debt that they submit billing statements which is NOT evidence under Truth in Lending Act, Amendments Fair Credit Billing Act 15 USC 1601.
This is the start of a series of articles about the Truth in Lending Act, Amendments Fair Credit Billing Act 15 USC 1601.
It is my goal to keep it simple. Up front I tell you I am not a lawyer or attorney. With that said let’s get started. I welcome your comments at the end of any of this articles.
Let’s imagine that a year ago you needed a loan and came to me for a loan of $5,000. You would pay it back monthly over 5 years at 0% interest. We both signed a contract with the terms spelled out and agreed upon.
I’m a nice guy and we have been friends so I wanted to help you. Ok, ok all you legal eagles reading this….I can hear you starting all kind’s of arguments . I said I wanted to keep it simple and it’s not like this scene never happens.
Imagine two years have gone by and my good friend had an accident and was hospitalized for several months. When he is discharged from the hospital, he is not 100% because he can’t remember his recent past. He gets my monthly request for payment on the loan and sends me a letter disputing the debt and asking me to verify the debt. He sites the above law to which I must comply and respond.
This is a link for you to read Click here to view these links.
Link 1 is the Fair Credit Billing Act(15 USC ß1601).
Link 2 is the Fair Debt Collection Practices Act (15 USC ß1692)
Link 3 is Generally Accepted Accounting Principles.
(b) For the purpose of this section, a ‘billing error”, consists
of any of the following:
“(1) A reflection on a statement of an extension of credit
which was not made to the obligor or, if made, was not in the amount reflected on such statement.
My friend, now known at the obligor sends me, now the creditor, a letter disputing the current month's bill, by regular mail and by Returned Certified Receipt.
“(2) A reflection on a statement of an extension of credit for
which the obligor requests additional clarification including
documentary evidence thereof.
Documentary Evidence....what is that? Documentary evidence is any evidence. introduced at a trial in the form of documents. Although this term is most widely understood to mean writings on paper (such as an Invoice. Contract or a) Will, the term actually include any media by which information can be preserved. Photographs, tape recordings, films, and printed emails are all forms of documentary evidence
“(3) A reflection on a statement of goods or services not accepted by the obligor or his designee or not delivered to the obligor or his designee in accordance with the agreement made at the time of a transaction.
The above statement makes clear what is being disputed and billed, that is, goods and services that are not agree to by the obligor or designee.
“(4) The creditor's failure to reflect properly on a statement a payment made by the obligor or a credit issued to the obligor.
Remember you have amnesia. You don’t remember a thing. The burden is on the creditor to prove that $5,000.00 went from the creditor account to the obligator.
“(5) A computation error or similar error of an accounting nature of the creditor on a statement. The billing statement needs to be shown NOT in error.
“(6) Any other error described in regulations of the Board.
“(c) For the purposes of this section, ‘action to collect the amount, or any part thereof, indicated by an obligor under paragraph (2)’ does not include the sending of statements of
account to the obligor following written notice from the obligor as specified under subsection (a) if ---
“(1) the obligor's account is not restricted or closed because of the failure of the obligor to pay the amount indicated under paragraph (2) of subsection (a) and “(2) the creditor indicates the payment of such amount is
not required pending the creditor's compliance with this section.
Statement are not sufficient proof of debt as outlined above when the dispute is started within the current billing period (subsection a) and paragraph 2 requiring Documented Evidence which included Generally Accepted Accounting Principles
Nothing in this section shall be construed to prohibit any action
by a creditor to collect any amount which has not been indicated by the obligor to contain a billing error.
What my friend has not made part of the dispute, I am entitled to collect on.
.
“(d) Pursuant to regulations of the Board, a creditor operating
an open end consumer credit plan may not, prior to the sending of the written explanation or clarification required under paragraph (B) (ii), restrict or close an account with
respect to which the obligor has indicated pursuant to subsection (a) that he believes such account to contain a billing
error solely because of the obligor's failure to pay the amount indicated to be in error. Nothing in this subsection shall be deemed to prohibit a creditor from applying against the credit limit on the obligor's account the amount indicated to be in error.
The Creditor may not restrict or close the account PRIOR to sending the obligator documentary evidence after send a written explanation or clarification to the obligor, after having conducted an investigation, setting forth to the extent applicable the reasons why the creditor believes the account of the obligor was correctly shown in the statement and, upon request of the obligor, provide copies of documentary evidence of the obligor’s indebtedness. In the case of a billing error where the obligor alleges that the creditor’s billing statement reflects goods not delivered to the obligor or his designee in accordance
with the agreement made at the time of the transaction, a creditor may not construe such amount to be correctly shown unless he determines
that such goods were actually delivered, mailed, or otherwise sent to the obligor and provides the obligor with a statement of such determination.
“(e) Any creditor who fails to comply with the requirements of this section or section 162 forfeits any right to collect from the obligor the amount indicated by the obligor under paragraph (2) of subsection (a) of this section, and any finance charges thereon, except that the amount required to be forfeited under this subsection may not exceed $50. (Refers to transaction amount)
I am therefore bond to follow the requirements of the above six section or I don’t collect the debt because I failed to prove that a debt existed.
Getting back to my simple scenario, it should not be to difficult to provide Documented Evidence that I did loan my friend the $5,000.00 two years ago. I can prove first of all, that we had a contract by providing the signed copy with amount of the loan, date the contract was signed and location. It will also show the amount to be repaid monthly, at 0% interest over 5 years with the date that the last payment falls due and that amount.
I need to open my accounting books showing an accurate entry of each payment by my friend credited and reducing the balance month to month.
Oh yes… most important “show him the money” I go my bank statement for that date and show that $5,000.00 came out of my account. I even get a copy of the certified check payable to my friend on the day the agreement was made and his endorsement and deposit into his bank account. I include a notarized note from my branch manage attesting to the facts and verification of the documented evidence.
You know, in this high tech era I bet I might even be able to provide a video at the bank the day we walked in to the branch together…my friend was anxious to get the 5k!
By no means is this article complete and exhaustive of every detail. But I’ll let you in on a little secret. The Credit Card Companies don’t come any where near to following the Law on this matter. If you were the consumer with amnesia and disputed their crazy demands for payments each month of hundreds of dollar at 40% interest with late fees included, what do you think the Credit Card Companies would provided after their “investigation”.... Billing Statements? Yes that is it! If anything at all is done or sent by their investigation department.
We urge you to visit http://www.creditcardrip.com Follow the guide through the Law, Frequently Asked Questions, Testimonial and more. I urge you to listen to the 25 minute detailed overview. Take action and don't feed into feeling powerless. "If You Don't Know Your Rights ...You have none!"
See my
Consumers Eliminate Credit Card Debt website link.
"Relieving The Burden of Debt From Americans, One Family At A Time"
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