Debt Relief Consumer Terms & Conditions
1. Services: Company agrees to provide debt resolution services to Client under the terms and conditions of this agreement (the "Service"). The Service consists of working with creditors on behalf of Client to try to resolve unsecured debts enrolled in the Program at less than full balance or to try to resolve those accounts through an Invalidation Technique. An Invalidation Technique is the use of the validation process under federal laws to invalidate the collection of debts by anyone other than the original creditor. Company will use commercially reasonable efforts to resolve the Program Debt, as defined below. Company will try to have a timely response to all Client inquiries. Company will keep confidential the personal financial information provided by Client. Company will determine the order and the method to try to resolve each Program Debt. There are no guarantees of anything. Everything is an estimate and actual results may vary. There are risks involved. On acceptance of Client into the Program, Company will provide a "Welcome Packet" containing a Schedule of Program Debt, a Savings Schedule, a Fee Schedule, a Funds Transfer Schedule, along with further information about the Program.
2. Client Obligation: Client accepts the following obligations:
a) Client shall inform Company of any additional debtor, cosigner or guarantor of any of Program Debt. Client is responsible for notifying such additional debtor, cosigner or guarantor. Company may require each additional debtor to execute a disclaimer against any adverse consequences of participation.
b) Client will provide a written list of all unsecured debts that he or she wants Company to attempt to resolve and restructure. Company has the right in its sole discretion to exclude certain debts, and will consult with Client to develop a mutually agreeable list of debts (the "Program Debt"). The list of unsecured debts shall have the current account balance, within the last fifteen days. A Schedule of Program Debt is incorporated into this contract by reference. This schedule will contain the name of the creditor, account number and outstanding balance. Debts added to the Program Debt after signing this Agreement will be subject to additional fees. All information provided by Client must be truthful and accurate; Company is under no obligation to verify information supplied by Client and will rely on the representations made by Client.
c) Any time a creditor contacts Client about anything, Client will notify Company. Client will forward all correspondence from creditors to Company, including collection letters. If creditors contact Client, the Client will keep a log of all calls and then send the list to the Company. Client will not discuss his or her financial situation with creditors or discuss resolutions. Client will not settle any Program Debt on their own unless Company instructs Client to do so. Should Client resolve any debt on their own, it will not impact fees.
d) Client will keep a log of all creditor calls and provide it upon request. Such log shall include the identity of the person who contacted client, their organization, the date, form and time of contact and a summary of the contents of the contact.
e) Client will timely respond to all calls and requests for documentation from Company and will promptly advise Company of any change in address or telephone number.
f) Client will make monthly deposits into a reserve in the amount set out in the Set-Aside Agreement which is incorporated by reference into this Agreement that will be used to resolve debts and pay all costs and fees including fees payable to the Company. All costs and fees will be paid out of the reserve and Client consents and authorizes all fees and costs as incurred to be paid from the reserve. Client may maintain the reserve on their own or work through an independent third party administrator (“TPA”). The TPA will collect reserve deposits, hold those deposits and disburse them to pay creditors as well as all fees and costs incurred. Company is not responsible for the selection of the TPA, the actions of the TPA, the fees of the TPAs nor for any funds held by the TPA. If Client serves as their own TPA or works with anyone other than , Client will have the obligation to make payments on their own to each creditor and to pay all fees and costs as incurred. This will require timely payment and coordination of disbursements. Failure to make the timely disbursements could result in losing a possible resolution and/or being terminated from the Program. Should Client elect to have as its TPA, Company with authorization from Client will work with the TPA to have it make the disbursements for creditors and to pay all fees and costs including amounts owed to Company on a timely basis.
If DPG is serving as the TPA, DPG will draft funds from a designated bank account through an electronic funds transfer (“EFT”) and hold them in a segregated trust or special purpose account for Client’s benefit until directed by Client or Company with Client authorization to release them. The TPAs charge fees for their services which they generally deduct from the funds in Client’s reserve. Typical TPA fees can include an enrollment fee, a monthly fee, non-sufficient funds transaction fees, a variety of disbursement fees, expediting fees and special handling fees.
Should client wish to change the selection Client will notify Company immediately.
h) Client shall make no further charges to any account listed on the Schedule of Program Debt. Client understands that Client should not continue to incur debt or open new charge accounts, except that Client may retain and use one charge card for emergency purposes only. The emergency account shall not be included in the Company program. If Client incurs additional charges on an account listed on the Schedule of Program Debt, Company has the right to terminate the Agreement.
i) Client will not refinance any real or personal property, except for the sole purposes of lowering interest rate or obtaining funds to settle debt. Client will inform Company of his or her intent to refinance prior to doing so.
j) Client will not generate more than two insufficient funds (NSFs) or payment reschedules in any 12-month period after the first 90 days. NSFs that exceed this limit or multiple payment reschedules are grounds for termination. There is a minimum of $25 fee for each NSF and/or bank charge fees for NSF. There is also a $25 fee for payment reschedule. No payment reschedule shall be authorized within 5 business days of the payment date. NSF's in excess of these requirements shall be grounds for Company to immediately terminate Agreement. An NSF may take place on a draft for the reserve or a draft for fees. Besides the NSF charges from the Company, the TPA may have an NSF charge and the Client’s bank may have an NSF charge. The Company has no control or participation in any NSF charge other than its own.
3. Compensation: As per Governmental FTC laws implemented October 27, 2010, DEBT RELIEF CONSUMER does NOT charge any upfront fees or monthly fees whatsoever to our Clients! If anyone representing DEBT RELIEF CONSUMER has told you otherwise, they are wrong and you need to contact the corporate offices immediately. Fees shall be paid to DEBT RELIEF CONSUMER each time Client agrees to settlement with a creditor, which has been designated, or referred by Client to DEBT RELIEF CONSUMER for negotiation. A late fee of 10% will be assessed on fees not received within (30) days of acceptance of the settlement. If the settlement is for an amount less than the creditor's claim, then DEBT RELIEF CONSUMER shall be entitled to a fee in an amount equal to 33% of the difference between the creditor's claim and the amount which the creditor agrees to accept in full settlement of its claim. If DEBT RELIEF CONSUMER is only able to get a monthly payment plan on any given account and the agreement/settlement is acceptable in writing or verbally from the Client, Client will pay DEBT RELIEF CONSUMER 33% of the savings OR Five-percent (5%) of the total current debt. (Whichever is Greater). Client authorizes DEBT RELIEF CONSUMER to pull the settlement monies directly from Client's dedicated account upon verbal and or written acceptance to each settlement.
• Company reserves the right to adjust the Program Debt Schedule and make adjustments to the monthly allocation of the Service Fee accordingly. All Service Fees and maintenance fees are for work completed and are not collected in advance. Client agrees that he or she will not make or request changes to amounts contributed to the reserves or to pay Compensation for the first 90 days following commencement of Client's participation in the program or the first three payments, whichever comes first. All fees due that are received by DEBT RELIEF CONSUMER are earned upon receipt and not refundable.
• If a client removes an account from the program before all Service Fees are paid in full, 7% of the Service Fee for the account removed will be credited to Client's remaining program Service Fees. If Client removes an account after Service Fees have been paid in full, no credit will be applied. Maintenance Fees remain unaffected.
• If Client does not complete the program as scheduled due to funds not being available for settlement, non-sufficient funds, or missed or rescheduled payments, Company at its option will charge Client a monthly account management fee of $125.00 for each month past the scheduled completion date until all Program debt is settled or the Agreement is terminated. This monthly account management fee is in addition to the Maintenance Fee and will be treated like the monthly Service Fee.
4. Resolution Process: Company will advise Client of all good faith offers made by creditors and DEBT RELIEF CONSUMER representatives and of their acceptance of any proposal. Company will not resolve any account or employ an Invalidation Technique without the approval of Client. Client has absolute discretion to accept or reject any proposal and accept or reject the use of an Invalidation Technique. Client must contact DEBT RELIEF CONSUMER within seven days of being contacted with each proposal and must also authorize disbursement from the reserve. If Client fails to respond, the proposal forwarded by Company including the release of funds from the reserve is deemed approved. If Client does not notify Company of its decision to apply an Invalidation Technique, the use of the invalidation Technique is deemed approved. Following approval, DEBT RELIEF CONSUMER then has the right to pay the monies to the creditor if DEBT RELIEF CONSUMER deems it appropriate as well as pay the Invalidation Fee to itself from the reserve. If Client has appointed anyone other than DPG to be its TPA including Client, Client will provide the appropriate instructions or make arrangement for the payment to the creditor according to the agreed upon proposal or authorize Company to make arrangements. Company may resolve what is known as a term resolution on Client's behalf. This is a resolution in which the Company obtains a lower amount than what is owed and makes payment arrangements with the creditor over time. Term resolutions may resolve at a higher percentage. Once this is obtained and arrangements are made with the creditor Company considers this account resolved. Company will take no further action with this creditor. If Client fails to meet the conditions of this resolution, Company will assume no responsibility or liability for Client's failure to comply with the terms of the resolution and payment obligations to that creditor.
• In the event Client comes into a lump sum of money and wishes to resolve all accounts before designated completion date, Client must pay the Company Service Fee in full when resolving the accounts.
• Clients must keep in contact with DEBT RELIEF CONSUMER staff as needed and throughout the entire length of this agreement.
• In limited circumstances, Company may be able to resolve debts with an Invalidation Technique. There are only limited situations when the Invalidation Technique will be available. The Company will make the determination when it may be appropriate and obtain consent from Client. If the Invalidation Technique is successful, the creditor receives nothing. There is an additional fee of 10% of the Invalidated debt amount that is paid to the Company for the service. This will be paid out of the reserve when Client authorizes the use of the Invalidation Technique and upon successful completion. If an Invalidation Technique is unsuccessful, it may be more difficult to obtain more favorable less than full balance resolutions. Even if there is a successful use of the Invalidation Technique, it is still possible that a creditor or a successor thereto could bring a legal action and ignore the invalidation.
5. Term: This Agreement will terminate when each of the credit accounts representing the Program Debt is satisfied or upon termination by either party as provided below. In addition, Client has a limited right of rescission, as provided for below.
6. Acknowledgements and Disclaimers: Client acknowledges and agrees that:
a) The outcome of the negotiation Service Company provides to Client is uncertain and cannot be guaranteed. Client understands that each situation is unique and that results will vary. Company makes no representation that an Invalidation Technique will be available to resolve any debt or that any debt can be resolved with a lump sum payment or periodic payments. It is possible a creditor may refuse to negotiate for anything less than full balance and interest, legal fees and penalties.
b) Balance Transfers, cash advances and accounts that are in summons or judgment status will settle at higher percentages.
c) The performance of the Service will have an adverse effect on Client's credit rating and Company is not responsible for the actions of the creditors in response to resolution efforts.
d) The Service does not include the modification, correction or improvement of Client's credit reports. Company cannot guarantee how national credit reporting agencies will report a resolution. Upon resolution of an account, Company will send proof of resolution to Client, who may forward it to credit reporting agencies.
e) In the event a creditor or DEBT RELIEF CONSUMER pursues legal remedies against Client, neither this Agreement nor the DEBT RELIEF CONSUMER Service includes legal representation. Legal action is a risk of participation.
f) Company may but is not obligated to retain legal counsel in the performance of the Service, but unless such counsel executes an agreement with Client and Client waives any conflict, that counsel only represents the Company.
g) No one has instructed Client to stop paying any creditor. That is the Client’s choice and Company does not manage, assume or pay debts.
h) All telephone calls with Company and subcontractors may, but not necessarily will, be tape recorded. Client consents to recordings. Those recordings may be used later on to establish what transpired and will be admissible in legal proceedings. Client consents to contact from Company and any subcontractor by telephone, fax, cell phone, text messages, US Mail, expedited delivery and e-mail.
i) Client is fluent in English and regularly conducts business in English. If client is not fluent in English, Client has worked with a translator will provide a Declaration confirming the translation from another language to English.
j) Before signing or committing to pay fees Client participated in a meaningful in-person presentation and had all questions answered. Client is signing this Agreement including all incorporated documents freely and voluntarily, not under duress, coercion or influence of drugs or alcohol. Before signing, client considered alternatives including Bankruptcy, Credit Counseling/Debt Management and Loan Consolidation. Client voluntarily joined and had the opportunity to consult with independent lawyers or advisers.
k) All Program Debts, after reasonable investigation by Client, are unsecured personal debt (not business under an EIN), are Mature Debts (at least 3 payments made), not in litigation status and over five hundred dollars ($500.00). Client is responsible individually or jointly for each Program Debt and in the case of a joint debt such other person is also a party to this Agreement or has executed an acceptable individual Disclaimer.
l) Company is not a law firm nor an accounting firm and cannot provide legal services, accounting services, legal opinions, tax opinions or accounting opinions. Neither this Agreement nor the Service includes any tax representation, such as audit and verification, debt retirement, Internal Revenue Service tax negotiation, bankruptcy related services, or any type of legal services. If Client has legal, tax or accounting questions or issues they should consult with a lawyer, tax advisor or accountant.
m) The discharge of indebtedness may be considered taxable income; Client should seek the advice of a tax professional.
7. Termination and Cancellation Policy: Client may cancel this agreement before midnight of the 10th day after the date on which Client signed this agreement. Company may terminate this agreement with 10 business days’ written notice to Client if Client fails to promptly return documents, fails to promptly respond to communications from Company, fails to pay fees in or breaches any other provision of this agreement. There will be no refund of amounts previously paid. There is a $95.00 processing fee charged to Client for cancellations after the rescission period and prior to the date of the first payment.
8. Assignment: Company may assign the Services to be provided under this Agreement to any qualified third party in its discretion without the prior consent or notification of Client.
9. Integration: This Agreement and the Schedule are the complete and exclusive statement of the agreement and supersedes any proposal, prior agreement, oral or written, and any other communications relating to the settlement of debt.
10. Amendment: Excluding changes of Addresses, changes of TPA's and changes in fees this Agreement may not be changed, amended, terminated, rescinded or discharged, except by a writing document executed by the parties hereto, except as provided in Paragraph 3 above relating to NSF's and reschedules, and no waiver of any of the provisions or conditions of this Agreement or any of the rights of a party hereto shall be effective or binding unless such waiver shall be in writing and signed by the party claimed to have given such waiver.
11. Severability: If any of the above provisions are held to be invalid or unenforceable, the remaining provisions will not be affected. By executing this Agreement, Client is certifying under penalty of perjury of the laws of the State where they live at the time of signing that they understand and agree to all of the provisions contained in the Agreement including all of the attachments. If Client is married, Client’s spouse must also sign this Agreement.