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DEBT SETTLEMENT

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					DEBT SETTLEMENT
PROGRAM GUIDELINES
MINIMUM PROGRAM DEBT: $5,000.00
MINIMUM ACCOUNT BALANCE: $500.00

PROGRAM TERMS:
$ 4,999  TO  $ 8,999        = 21 MONTHS
$ 9,000  TO  $ 11,999       = 28 MONTHS
$ 12,000 TO  $ 19,999       = 30 MONTHS
$ 20,000 TO  $ 29,999       = 32 MONTHS
$ 30,000 TO  $ 39,999       = 34 MONTHS
$ 40,000 TO  $ 59,000       = 36 MONTHS
$ 60,000 TO    $ 74,999     = 38 MONTHS
$ 75,000 TO  Infinity       = 42 MONTHS

EXTENDED TERMS AVAILABLE FOR EXTREME
HARDSHIPS




Program Debt Requirements Debt Accepted Into The Program:
 Credit Cards
 Unsecured Loans
 Unsecured Personal Loans
 Collections
 Repossessed Autos with Deficiency Statement
 Medical Bills
 College Tuition – No Government Backed Student Loans
 Repossessed Recreational Vehicles
 Unsecured Personal Lines of Credit
 Gym Equipment
 Payday Loans
Debt Not Accepted Into The Program:
   Utilities on Open Accounts
   Current Auto Loans
   IRS Debt
   Tax Liens
   Student Loans (Government Backed)
   Military Star
   Military Pioneer
   Jewelry Accounts
   Cash Call
   Secured Loans
   Home Loans (NO HELOCS)
   Apartment Lease Defaults
   Overdraft Accounts (linked to checking or savings accounts)
   Business Accounts (with the company currently open)
   Credit Union Personal Loans
   Army & Navy Exchange Service (used primarily by military personnel)
   Gym Memberships
   “USAA” United Services Automobile Association (used primarily by
military personnel)
   “USAA” Federal Savings Bank (used primarily by military personnel)
   Debt that is pending or in the process of a Lawsuit (if judgment has
been issued, ok. No PENDING litigation)
NOTE: (* *) See Descriptions Listed On The Next Few Pages for Debt that can
be entered into the program if the proper requirements are met.
Debt Allowed in the Program with Special Circumstances:
   Banks:
We accept Credit Cards, Unsecured Loans, Unsecured Personal Loans, Autos or
Trailers that are repossessed. If the client has a checking or savings account
with the bank, it needs to be changed prior to enrollment.
   Business Accounts:
Any accounts related to a business will not be accepted into the program if the
business is currently open.
If the business is closed, the debt may be accepted into the program with a
signed Commercial Debt Waiver.
   Savings Accounts:
A client may use a savings account as a source for debiting their monthly
payment. The client needs to know that the deposit slip routing number is used
for deposits only. The client will need to contact his/her bank and request a
routing number for debits (withdrawals) from the savings account. This is the
number which we will use for debiting the payment.
   Credit Unions:
We only accept Credit Card debt from Credit Unions.
Clients must close their Credit Union checking or savings accounts prior to
entering the program if they are including a credit card from the Credit Union.
This is due to Cross Collateralization. If the accounts are not closed and the
Credit Union receives the Limited Power of Attorney, the Credit Union will
freeze the client’s assets associated with that Credit Union. This can include
repossession of a vehicle financed through the credit union, a lien against a
mortgage through that Credit Union and so on.
A client may not enter debt from a Credit Union that he is employed with or
associated with. The Credit Union will recoup their money from the clients pay
check and/or may terminate his employment.
   Credit Reports:
The use of credit reports is accepted. It is still suggested that you instruct
client to send in all statements for accounts being enrolled into the
program ALONG with running their credit.
Date “last reported” or “date updated” for each creditor can not be older
than two months. With dates three months and older we have found in many
instances the debt has been sold to another agency or sent to collections.


Client can obtain their own credit report and send it to you. Tell them to get the
TransUnion report through www.annualcreditreport.com. This report includes the
most recent information with full creditor account numbers.
Instructions for client to obtain report:
1 - Instruct client to go to www.annualcreditreport.com
2 - Once logged into website, client will select the state the client resides
in.
3 - Next select “request report”.
4 - Client will be asked for personal information, i.e. name, address, social
security number, etc.
5 - Once personal information is completed, click “Continue”
6 - On the next page, the client will be asked what credit reporting company
they want to choose. Client will select TransUnion, then click “next” to
continue.
7 – Client will have to answer 3 security questions such as account numbers
for revolving or installment loans they currently have, name of a past
employer, address and zip of a past street they lived on.
8 - Have client print report and fax.
   Creditor Worksheet:
The Creditor Worksheet is to be filled out entirely.
-Please include all account numbers in full as well as balances.
   Gas Cards:
We accept Gas Cards that are backed by major creditors such as Visa, Master
Card, etc. Account numbers will be sixteen digits: i.e. BP Cards (through
Chase), Shell Master Card (through Citibank), etc.
   Collections
If a creditor has acquired the services of a collection agency to recover a
debt, the statement from the collection agency needs to have the original
creditors account number in order for us to verify and negotiate the
client’s debt. A majority of the time, the collection agency will also have their
own account number along with the original creditors account number on
the statement.
If an agency has purchased the debt and is not working for a creditor, the
account number the agency has assigned to that debt will be sufficient for
verification and negotiation.
   Balance Transfers and Cash Advances:
Clients are required to make at least 3 monthly minimum payments on any
balance transfer or cash advance before the debt may be entered into the
program. This would also apply to any balance transfer or cash advance from a
line of credit.
During a consultation with a client, please ask, “Have you done any balance
transfers or cash advances in which ZERO payments have been made at all to
that creditor on a that credit card, personal loan, line of credit, etc”. If the
answer is yes, then a determination needs to be made whether that debt can
be accepted. This will be based upon the size of the advance or balance
transfer, how long has it been since it took place and the specific creditor.
In some instances, a balance transfer or a cash advance above $500 may be
accepted based upon the size of the debt and the creditor to which it is
associated with. This will be a case by case basis and will be determined by
management.
   Military Accounts:
   We can accept active Military Personnel into the program, this includes
Military Reserves. A Military Debt Waiver will be signed by the client and
his/her commanding officer. Our Compliance Officer will verify
authenticity of the waiver.
- (If we accept a client in the military without such a waiver, it could hurt
their current rank, future advancement, loss of security clearance,
and possible demotion.)
   Government Security Clearances:
- A number of Military personnel and civilian personnel work for the
Government. Within these positions, they hold security clearances, some at
very high levels. Verify with the client that this program will not jeopardize
their job or security clearance.
This is a possibility.

  “USAA” Accounts:
- In some cases we can negotiate on USAA accounts. The most common
services are listed below.
- “USAA” United Services Automobile Association (used primarily by military
personnel) and “USAA” Federal Savings Bank (used primarily by military
personnel).
- The following criteria will be used for qualification of a USAA debt to
be entered into the program. It is pertinent that each consultant makes
sure that this criterion is met and is accurate. Each USAA debt will be
reviewed by management and in compliance.
1. Client is not enlisted in the military.
2. Client is not active in the military reserves.
3. Client is not receiving military retirement pay or subsistence.
4. Client cannot be a family member or relative of an active or retired
military person who is a signer on the client’s card or account.
5. Client is not employed by the government in a contractor
capacity.
Note: If a client meets the above listed criteria, there is still another
concern. If the client has automobile insurance, house insurance,
renters insurance, etc., more than likely they will be dropped
from the carrier. If not, when the policy is to be renewed, the
carrier will likely request a year in advance premium or not let them
sign up for insurance at all.
   Furniture Accounts:
These accounts MUST have a Secured Debt Waiver. Make sure to inform the
client that there is always the possibility that the furniture may be
repossessed.
   Student Loans:
There are a number of different Student Loan Programs throughout the
United States. Some are financed through private lenders while others are
Government backed. We do not accept this type of debt. We Will Not Accept
Any Student Loan That Is Government Backed Such A Stafford Loan, Federal
Direct Student Loan Program, Federal Plus, Federal SLS, Federal
Consolidation Loan Program.
   College Tuition
We can take college tuition that is not attached to any school loan like a
Stafford Loan. This type of tuition debt typically comes from online courses
from colleges such as Phoenix and Westwood College.
   Judgments:
We can accept accounts that have judgments against them. The client needs to
be informed that the account may settle at a higher percentage.
NOTE: In order to enter a Judgment into the program, it requires the
Judgment Order. This order dictates the terms of the judgment which
allows us to see what avenues we have for negotiating the settlement.
   Lawsuits
We will not accept a debt which has been issued a notice of pending
lawsuit or is in the process of being sued by an Attorney or a Law Firm. The
debt can be added to the program once a judgment has been awarded. The
debt, when added to the program (as a judgment) will settle at a higher
percentage rate.
   Cell Phone Bills:
We can only take Cell Phone bills that are in collections after the account
has been closed.
   Hardship Explanations:
Clients are required to complete a detailed “Explanation of Hardship”.
This hardship explanation is very important in the negotiation process. If the
explanation is weak or minimal, the creditor is apt to discount a settlement
proposal if not deny it completely. Please instruct your client to be as
detailed as possible regarding their hardship. It is also helpful if you go
through the hardship with them and take notes. That way, when the
paperwork is returned to you, if they have by some chance forgotten to
include details of their hardship, you can call them, go over the missing
information and have them add the missing hardship and re-send it to you.
   Repossessed Vehicles:
Automobiles - We accept debt on automobiles that have been
repossessed. Proof is required the vehicle has been repossessed; a
Deficiency Balance Statement will indicate the balance to be negotiated
on.
Recreational Vehicles - We accept debt on recreational vehicles that have
been repossessed. Proof is required that the vehicle/trailer/RV/etc. has been
repossessed; a Deficiency Balance Statement will indicate the balance to
be negotiated on.
   Recreational Vehicles: Motorcycles, ATV’s, Boats, Jet Ski’s,
Trailers, Tractors, Motor Homes, Campers, RV’s, Snowmobiles,
Airplanes.
We will not accept the debt if the client still possesses the vehicle. Sometimes
a client states he does not care if the creditor repossesses the vehicle, he
will sign a secured debt waiver and wait for whatever happens just to get the
debt accepted. The problem with this is that the vehicle, once
repossessed, will be sold at auction which changes the debt balance. There
will also be late charges, estimated repossession, collection and storage
expenses that will be added to the debt. We need a true debt amount in
order to negotiate.
If the recreational vehicle was purchased with an outside unsecured credit
card we can accept the credit card debt. ** Outside would indicate that the
issuer was not the brand of the motor vehicle. Example: Yamaha credit,
Honda credit.
   Conn’s Electronics & Furniture Stores:
We do not accept any accounts in collections from this store (located mainly in
the state of Texas). They will show up at the client's residence or business and
repossess any items associated with the debt.
   Citi and Discover Cards:
Client is to be informed that a Limited Power of Attorney will not be sent
to the following Creditors: Citibank, Citicorp, Citigroup and Discover Card.
Citi and Discover have a history of pursuing legal action against clients as
soon as they know the client is working with any agency. This does not
guarantee that Citi or Discover won’t sue. By using these tactics, it will help
if not delay any action from the creditor.
The Power of Attorney for Citibank, Citicorp, Citigroup and Discover will
only be sent once the debt goes to a collection agency. On average this
takes six to eight months to happen.
Affiliates of Citi that currently negotiate are: Citifinancial, AT&T Universal,
Sears, Goodyear and Home Depot.

   Payment Coupons for Unsecured Loans:
We can accept payment coupons for unsecured loans under the following
circumstances:
   We need to see a copy of the unsecured loan agreement. This
insures that the loan is not secured or that there are no
stipulations within the loan that would jeopardize the
client's property or personal possessions.
   Need the most recent payment coupon. No older than two
months.
   Client needs to request the current balance of the loan from
the bank.

Gym Memberships:
We do not accept any Gym Memberships into the Program. This includes the
likes of Bally's Fitness, 24 Hr. Fitness, LA Fitness, LA Sports Clubs, etc.

Please call to see if you qualify for debt settlement.

Direct Federal Mortgage Inc
17610 Beach Blvd., Suite 46
Huntington Beach CA 92647
www.directfederalmortgage.com

Marketing Site and wholly owned subsidiary of Direct Federal Mortgage Inc.
www.letssettle.com
17610 Beach Blvd., Suite 46
Huntington Beach CA 92647
888 660-4098 Toll-Free Office

				
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