Anyone hear of Fair Credit Law Group

[designated_knitter]

Lately I've been getting solicitations for Debt Settlement programs -- some who specifically know exactly how much my debt is including minimum monthly payments -- which seems like a violation of privacy to me -- the CRAs shouldn't be selling this information so that scammy debt settlement companies can try to take advantage of us... but I digress)

Most of these settlement companies involve having you go 30-60 days past due on all your accounts (while they pocket your money for 30-60 days)... they they swoop in and negotiate with the CCC for less than the amount owed.  

Today I got a call from the "Fair Credit Law Group" which was peddling a different approach:  basically sue all your creditors (at least ones with a balance over 750 bucks) and try to get them on violations of FCRA or FDCPA and hassle them for documentation etc until the creditor just basically forgive the debt or settles for "pennies on the dollar"... since the debt is in the process of validation and litigation, CCCs can not put any negatives on your credit report, can not call you, can not report things like "debt settled for less than owed" etc.

in other words be a thorn in the side of the CCCs until it isn't worth it to them to fight the debt and collect it. 

Then in 2 years time, you are basically "done".  In those 2 years, (I gathered), you make payments on what is shown as an installment loan and with the 2 years of on-time payments, you rebuild your credit.

Has anyone ever heard of this approach?  I can't believe that it is as simple as this guy made it sound.  If nothing else, I would think you would be internally blacklisted from any creditor that was sued.  You would also most likely get 1099s for any debt forgiven.

As I said, I've heard of the "pay us to destroy your credit and then negotiate with your creditors" approach but the "pay us to sue your creditors and try to catch them on a technicality and force them to settle" approach is new to me.

(sorry if this is not the right forum -- wasn't sure where it would fit).

I would be interested in hearing if anyone else has heard of this and how it would not wind up biting you in the back side in the end...

Cheers!

[RobertEG]

The CRAs cannot provide your credit report to anyone without that party providing a statement of permissilbe purpose to the CRA.

Permissible purpose for business transactions only applies if the business transaction has been intiatied by the consumer, and the intiitated transaction carries with it a legitimate business need to review your credit. 

I dont see a permisbile purpose in the case of a company wishing to offer services as a credit repair organization.

Are you sure they obtained your credit report?

As for the "hassle them to death" approach, they must have a legitimate basis for assering inaccuracy of credit reporting in order to file a dispute under the FCRA.

Frivolous disputes that lack the necessary showing of an inaccuracy can be dismissed without investigation,, and can tick off the creditor/debt collector.

A typiical and valid credit repair procedure is to request good-will deletions.  Frivolous and harassing actions could act contrary to receiving any godd will.

I would be leary of a credit repair organization to openly expouses a primary tactic of harassment.

[designated_knitter]

In terms of the debt settlement come-on that I received that showed my total amount of debt including minimum monthly payments, it is from a group that I DEFINITELY have not heard of or given them any permission to run my credit (hard or soft pull).  I gave up my Equifax membership so can't see soft pull inquiries anymore but I would bet there would be a PRM inquiries from companies like this.

in terms of the Pitbull "sue-em" approach to debt settlement, after doing more research on the internets -- I think this is a type of scam that the FTC has been cracking down on.  There were a lot of mortgage loan modification scams -- particulary back during the housing crisis.  Now it has morphed to credit card debt, car loans, and even payday loans.

I googled the law group in the title and the only thing I found was for an attorney who is an "equity partner" who has received disciplinary action from the Florida Bar.  The reviews said that he would collect about 500 bucks a month, initiate a bunch of lawsuits but not follow through... leaving these people in worse shape than they were before.

The other thing they guy kept saying is that they have an "A+ rating" from the Better Business Bureau.  Then he sent me an email where he indicated they are in good standing with the OBB -- "ONLINE Business Bureau" -- sounds like the difference between Fico and Fako.  Heck, even if they did have an A+ rating from the BBB, that isn't necessarily a ringing endorsement.  There are payday lenders that have an A+ rating with BBB but that doesn't mean you should do business with them.

Even if it was legit -- obviously, you would be blacklisted internally for every lender.  I tried to get a Cap 1 360 checking account awhile back.  But apparently I had an ING Direct account probably over 12 years ago where supposedly it was closed because of an NSF transfer.  I remember the ING Direct account ... don't remember why it was closed and it was so long ago I didn't dispute or protest because I didn't know better.  Apparently Cap1 360 was formerly ING Direct and I was told that I am permenantly banned from ever having a 360 account even though I have a clean chexsystems report at this point and Cap1 has been very very good to me for credit cards.

I can only imagine that the "sue 'em until they give up" approach would land me on the blacklist of every creditor sooner than going Chapter 7/13!

In short... this is a scam -- one I hadn't heard of before but at this point, I kind of like "collecting scams", if that makes sense.  in other words, I think it is interesting to be presented with one of these scenarios and then figure out what's wrong/scammy about it.  I feel like it makes more more saavy and keeps me on my toes so I DON'T allow myself to be taken in by a scam.

[takeshi74]

I haven't heard of this approach or company specifically but generally these credit repair companies are not worthwhile.  With some education and effort one can repair one's own credit.  People seem to be lured by quick and easy fixes and there's just no such thing with building or repairing credit.

[Anonymous]

Yes I have and I used them for my mother. Of course I had some of the same questions about  Paul Herman and apparently Paul Herman had worked with them in the past and has not worked with them or had anything to do with the firm for 6 years for reasons they said they chose not to state. After doing extensive research on them and seeing after 20+ years of practice and no formal complaints at any of the regulatory agencies and a stellar BBB rating I decided to use their representation for my mother. My mother had a business that was largely being affected by the economy, and all I can say is good things about the results. Although lawyers are sometimes short for words and time the results were nothing short of amazing. She had 6 accounts and over 30k in debt that she no longer has and although the negative information is still on the report after they resolved the debt, they had disputed the negative info through the FCRA once the debt was gone at no additoonal costs and although it shows it shows it as "Valid FCRA Dispute" on each account and does not reflect in the calculation of the score. Her debt is gone and her score is great and although I know sometimes salesman have tendencies to over sell or over state, however what these attorneys did for her was nothing short of a miricale and when my mother and I had spoke to the attorneys they never over stated a thing and gave a risk vs benefit analysis, and although it was very scary and nerve racking in the begining I do not regret the decision we made for one second and we are very thankful for the help they gave her.

[Anonymous]

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@Anonymous wrote:

Yes I have and I used them for my mother. Of course I had some of the same questions about  Paul Herman and apparently Paul Herman had worked with them in the past and has not worked with them or had anything to do with the firm for 6 years for reasons they said they chose not to state. After doing extensive research on them and seeing after 20+ years of practice and no formal complaints at any of the regulatory agencies and a stellar BBB rating I decided to use their representation for my mother. My mother had a business that was largely being affected by the economy, and all I can say is good things about the results. Although lawyers are sometimes short for words and time the results were nothing short of amazing. She had 6 accounts and over 30k in debt that she no longer has and although the negative information is still on the report after they resolved the debt, they had disputed the negative info through the FCRA once the debt was gone at no additoonal costs and although it shows it shows it as "Valid FCRA Dispute" on each account and does not reflect in the calculation of the score. Her debt is gone and her score is great and although I know sometimes salesman have tendencies to over sell or over state, however what these attorneys did for her was nothing short of a miricale and when my mother and I had spoke to the attorneys they never over stated a thing and gave a risk vs benefit analysis, and although it was very scary and nerve racking in the begining I do not regret the decision we made for one second and we are very thankful for the help they gave her.

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Welcome to the forums new member who just registered today to respond to this thread.

[Anonymous]

I had a man call me yesterday The Lawyer Referral Network. He was telling me the same thing.  The attorneys could basically wipe out my HUGE debt. He emailed me the info and I'm supposed to call him back today.  I'm Very Leary!  He has three different law firms that he uses: The Ferrer Law Firm, Advocacy Group Law Firm & Fair Credit Law Group.  It sounds so good, I'm so deep in the whole I'm about ready to sign on with them.  Anybody know of these other law firms? I tried to google scams but couldn't find much that I was sure was legit claims. Please Help....

[sarge12]

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@designated_knitter wrote:

Lately I've been getting solicitations for Debt Settlement programs -- some who specifically know exactly how much my debt is including minimum monthly payments -- which seems like a violation of privacy to me -- the CRAs shouldn't be selling this information so that scammy debt settlement companies can try to take advantage of us... but I digress)

Most of these settlement companies involve having you go 30-60 days past due on all your accounts (while they pocket your money for 30-60 days)... they they swoop in and negotiate with the CCC for less than the amount owed.  

Today I got a call from the "Fair Credit Law Group" which was peddling a different approach:  basically sue all your creditors (at least ones with a balance over 750 bucks) and try to get them on violations of FCRA or FDCPA and hassle them for documentation etc until the creditor just basically forgive the debt or settles for "pennies on the dollar"... since the debt is in the process of validation and litigation, CCCs can not put any negatives on your credit report, can not call you, can not report things like "debt settled for less than owed" etc.

in other words be a thorn in the side of the CCCs until it isn't worth it to them to fight the debt and collect it. 

Then in 2 years time, you are basically "done".  In those 2 years, (I gathered), you make payments on what is shown as an installment loan and with the 2 years of on-time payments, you rebuild your credit.

Has anyone ever heard of this approach?  I can't believe that it is as simple as this guy made it sound.  If nothing else, I would think you would be internally blacklisted from any creditor that was sued.  You would also most likely get 1099s for any debt forgiven.

As I said, I've heard of the "pay us to destroy your credit and then negotiate with your creditors" approach but the "pay us to sue your creditors and try to catch them on a technicality and force them to settle" approach is new to me.

(sorry if this is not the right forum -- wasn't sure where it would fit).

I would be interested in hearing if anyone else has heard of this and how it would not wind up biting you in the back side in the end...

Cheers!

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I would only consider non-profit debt counselors of very reputable nature. Check FTC website for advice on what to look for. Be very leary of any that promise to wipe out debt. Only valid bankruptcy can do that. More schysters in credit repair than reputable. Ask a local bank for reputable credit counselors...they actually recommend good ones, because even if they lose money because of it, they lose less than in bankruptcy. They know a good one can look at your finances and honestly know what you can actually afford to pay, and they will often work with them to prevent your alternative of bankruptcy.

[a1canesfan]

When you file suit against anyone, it's public record. There are companies (Web Recon and Lexis Nexis to name 2) who compile and track debtors who file lawsuits against creditors and third party collection agencies and furnish this data to creditors and collectors who subscribe to their service, allowing them to cross-reference or "scrub" their inventory for "litigious debtors". The same basic processes take place to "scrub" for bankruptcies, recently deceased debtors, recently ported cell phones which could lead to TCPA violations if robo-called, among other compliance/risk management related scrubs financial institutions perform to protect themselves from unnecessary exposure. I would be very leery about appearing as a "frequent filer" of lawsuits against my creditors, especially if I hoped to establish new relationships moving forward.