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					Lich Tran
9353 Bolsa Ave #I32
Westminster CA 92683

September 02, 2003

Attention: Mr. Robert Rayner, Analyst
Public Inquiry Unit, State of California
Department of Justice
P. O. Box 944255
Sacramento, CA 94244-2550

RE: Ameridebt Letter dated August 25, 2003

Dear Mr. Rayner:

In response to Ameridebt letter dated August 25, 2003 sent to Department of Justice
California, which I received a copy on August 30, 2003. After reading Ameridebt letter,
I am wondering about the inconsistency in Ameridebt statement: “Ameridebt records
reflect that she was late 15 times with her payment to Ameridebt”.

This is an untrue statement. In fact, I had never sent late any payment to Ameridebt. I
paid Ameridebt a lump sum of $528 per month and a one-time administration fee of
$528. Ameridebt should know how to allocate my fun and pay the credit companies on
time, not too early nor late. If there were a late payment, it would have affected all the
other accounts. If I had missed one payment, then it would have affected all the other
accounts. Yet, the problem happened only to Sears account. The following table shows
account balances of other credit companies compared to Sears account.

                 Balance    Balance     Monthly     Reduce/
Cr. Companies    11/11/1999 05/01/2003 Payment      Increase
Citibank          $ 806.00 $      183.00 $    20.00 $ (623.00)
First USA         $ 959.00 $      353.85 $    25.00 $ (605.15)
Sam Club          $ 989.00 $      411.60 $    10.00 $ (577.40)
Micro Center      $ 1,127.00 $    338.05 $    25.00 $ (788.95)
SEARS             $ 1,206.00 $ 2,503.91 $     36.00 $ 1,297.91
AT&T              $ 1,400.00 $    417.81 $    30.00 $ (982.19)
First Card        $ 3,380.00 $ 1,903.00 $     70.00 $ (1,477.00)
Shell             $ 3,462.00 $ 1,727.78 $     75.00 $ (1,734.22)
Discover          $ 8,065.00 $ 4,372.38 $    165.00 $ (3,692.62)
Total             $21,394.00 $ 12,211.38 $   455.00

Actual Payment                               $    528.00

The truth is that in 1999 Ameridebt was a new business in consolidation. Ameridebt did
not have an electronic payment system and did not know how to manage money

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effectively. Ameridebt contacted me several time but still record me as a female, not a
man. If investigating Ameridebt’s ineffective payment system for the period from
November 1999 to February 2002, anyone can realize Ameridebt bad management that
causes a big lost for all of Ameridebt customers. For an example, each time Ameridebt
pay late or too early, one customer lost $25 and thousand customer lost 25 thousand
dollars per month. Such bad management practice enriched credit card companies
unjustly. That is why Ameridebt Customers for this period cannot pay off their debt in 3

I had sent and faxed many complaints about Ameridebt late payments to my accounts in
credit companies during this period. I believed that all other Ameridebt customers had
such experience like me and suffered extra cost for Ameridebt bad management. There
were so many complaints for such careless and unskilled practice. Consequently,
Ameridebt had to change its payment system to direct withdraw and payment through
electronic (EFT) in February 2002.

Before Ameridebt changed to its EFT system in February 2002, I had paid regularly by
money orders with express certified mails and through Western Union with extra service
cost of $11.95. Because Ameridebt said I paid late 15 times, Ameridebt must specify the
due date of each late payment. I will provide the specific evidence to prove Ameridebt
fraudulent practice.

Ameridebt advertises and promises its customers to reduce their debt within 3 to 5 years.
Customers just pay monthly a lump sum including Ameridebt profit and a one time non-
refundable contribution up to 3% of the total debt. Ameridebt has the duty to negotiate
with credit companies in order to lower interest rate and eliminate unnecessary charges.
In fact, I paid monthly $528 including Ameridebt profit of $73 equivalent to 13.83% each
month or 180% per year. I also paid a one time non-refundable contribution of $528.
Yet, Ameridebt had seriously damaged my credit. My credit report shows that Ameridebt
were late with payment to Sears in 18 occasions. This negligence on Ameridebt part is
due to inappropriate use of my funds, and the advertisement that debt will be paid off in
five (5) years in Ameridebt website is false and misleading. My total debt after four (4)
years was reduced only 57% (from $21,394.00 to $12,211.38). Specifically, Sears
account increased from $1,206.00 up to double amount of $2,503.91.

I just received a report from Sears showing that Ameridebt did not pay to Sears account
for the month of May in 2001. The account has been assessed an additional late fee each
month since then. This missing payment damaged my credit by 18 late occasions.
Moreover, the program was cancelled on November 2002 without my knowledge.

In reviewing Sears Itemization Report I found that Ameridebt sent the payment of May
2001 too early and Sears rigid system counted the payment for April 2001. Consequently,
there were two payments in April and a missing payment in May 2001. Then Sears
unjustly enrich its benefit by 18 late payment fees. Please see the Sears’ letter sent to
BBB and other attachment.

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Also in the attachment, as soon as I received Sears first statement with wrong address, I
discussed the unfair charge and offered a proposal. I paid off the entire balance of
$359.91 in Sears account as stated in my proposal on May 22, 2003 after Ameridebt
agreed to reduce the monthly payment on 06/04/2003 from $528 to $492 (includes
Ameridebt fee of $53.00.)

I work very hard to pay off my debt and always responsible for my debt. However, there
must be something wrong in Ameridebt system that creates unfair and unethical practice.
Due to Ameridebt careless and unskilled practice, I will suffer an extra amount of
$2323.48 not by my false. This amount continues to increase forever with high interest

I believe that this amount should be handled between Ameridebt and Sears because:
    (1) Ameridebt had a contract with Sears to consolidate my debt from November 11,
    (2) Sears had never contacted me from November 11, 1999 until March 2003 due to
        Sears incorrect input my address;
    (3) I had paid $528 per month without late nor missing a single payment;
    (4) I paid the full amount of $359.91 to pay off my entire debt due to Ameridebt
        agreement and with Sears acceptance;
    (5) Sears has an error in its careless system causing an extra unfair cost for me and
        unjustly enrich Sears benefit; and
    (6) Ameridebt careless and unskilled system sent payment to Sear too early that
        causes a missing payment in the month of May 2001, resulting in 18 late fee
        charge, and causing an extra unfair cost of $2323.48 (this amount continues to

Moreover, Ameridebt must correct the wrong report on my credit and responsible for my
suffering such as my high interest rate when purchasing cars, and the negative effect on
my occupation due to Ameridebt careless practice,

According to the law, I have tried my best to mitigate the lost by canceling the contract
with Ameridebt and signing another new consolidation contract with another company.


Lich Tran

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