HOW TO BEAT A COLLECTION LAW SUIT

CREDIT REPAIR CHAMPION LLC.,

BUSINESS FUNDING & CONSULTING
IN BUSINESS OF MAKING PEOPLE CONFIDENT AND SUCCESSFUL OWNERS OF THEIR OWN FUTURE
S!!!
HOME OF THE 200 IN 120 GUARANTEE
METHOD PNN#010131, REUPDATED BY RODNEY PEAK ON STEP #4 ON 08/14/2003 AND NOW REF
ERENCED AS
PNN#013101,R081403, COPYRIGHTED BY BOTH CREDIT REPAIR CHAMP
ION,LLC. BUSINESS FUNDING & CONSULTING AND EQUALLY BY SUPERIOR TRADELINES AND SU
PERIOR BROKER LINES .
HOME OF THE 200 IN 120 GUAR

4 STEPS TO SUCCESS
By Rodney Peak,Esq./Citronelle,Alabama,
of Credit Repair Champion, LLC. Busin
ess Funding & Consulting
Matt Nichols,Esq./Birmingham/Alabama
of Credit Repair Champion, LLC. Busi
ness Funding & Consulting
Andy Nelms, Esq./Montgomery, Alabama
of Credit Repair Champion, LLC. Busines
s Funding & Consulting
DISCLAIMER: This article comes with a giant, very real DISCLAIMER. This article
does not and is not meant to give legal advice. WE ARE not YOUR attorneys and we
have no attorney client relationship(s). If you use any of the information impa
rted by this article, you do so at your own risk and we strongly urge you to con
sult your own attorney.
This article is written with the assumption that the debt for which you are bein
g sued is a valid debt and that it is your debt. If you are being sued over a de
bt that's not yours, please stop reading this article and find a local lawyer in
your area.
If not, then the difficult moment of truth has finally arrived; you've been sued
by a debt collection attorney. So, what do you do now, assuming you simply cann
ot pay the debt?
STEP ONE
The very first thing you do is request a Federal Fair Debt Collection Practices
Act debt VALIDATION pursuant to 15 USC Section 1692(g) See Validation of Debts N
OTE: Some refer to Validation as Verification. In our humble opinions at Credit
Repair Champion, LLC. Business Funding & Consulting there is no difference so do
n't let the language confuse you. As far as we are concerned, for purposes of th
is article, Validation and Verification are the same thing.
The United States Congress has given us help pursuant to 15 USC Sec. 1692(g). Th
is statute requires a collector to cease collection activities pending the debt'
s verification or validation. In addition, any credit collector found in violati
on of 15 USC 1692(g) is subject to suit and penalties pursuant to the Fair Debt
Collection Practices Act, 15 USC section 1692(k) , fines range between $1000 and
$500,000 PER EVENT.
As an example, your client has a creditor whom has placed a debt, IRREGARDLESS O
F AMOUNT , with a collection agency or two or three,so on... You , as their prof
essional voice against the system of vile injustice of mal-reporting and repeate
d ignoring of consumer rights , including those of your client's of course. Prio
r to coming to you, your client attempted a DIY program, which (NEVER WORK OBVIO
USLY) she sent in 7 separate attempts to dispute this collection accounts thrugh
the CRAs( so total of 21 returned verications) , 4 times directly with the col
lection agencies (so 7 total), and 5 times with the original creditor (another 5
official disputes) for a total of attempted disputes would of been 40 dispute
events BEFORE YOUR PROFESSIONAL EXPERT EYES GOT TO THE FILE. NOW THE CASE IS ON
LIFE SUPPORT AND CERTAIN BANKRUPTCY AND FINANCIAL HELL IS RIGHT AROUND THE CORN

ER----OR IS IT?YOU GET THE FILES, AND EQUALLY, YOU TOO DISPUTE AT ALL THREE LEVE
LS AND EVEN TO THE FTC ANOTHER 4 ROUNDS (16 more official events of disputes) WI
THOUT A SHREAD OF SUCCESS---now tallying up an incredible 56 DISPUTED EVENTS ON
JUST THAT ONE COLLECTION ACCOUNT. AT THIS POINT, UNLESS YOUR BRAIN DEAD, IT SHO
ULD HAVE BECAME OBVIOUS TO YOU BY NOW THAT THIS IS AN ACCOUNT THAT YOUR CLIENT I
S TRULY RESPONSIBLE FOR!
TIP******NEVER STATE IN YOUR CLIENT'S LETTERS (DESIGNED BY YOUR F
IRM) IN A FORMAT THAT ARE APPARENTLY STATING YOU HAVE POSSESION OF FACTUAL DATA
TO CONTRARY IN NATURE UNLESS YOU YOURSELF CAN DETERMINE THIS IS TRUE. NEVER USE
YOUR "GUT FEELINGS", NOT IN BUSINESS NO MORE THAN YOU WOULD IN MAKING DECISION A
MARRY OR DIVORCE. BEYOND DOUBT, ALWAYS UTILIZE THE WORD OF ALLEDGE OR "declared
but not proved" OR "doubtful or suspect" OR "questionable,so-called,or supposed
"
, NO MATTER HOW MUCH YOU WANT TO "BELIEVE YOUR CLIENT" AND YOU MUST AWAYS UNDERS
TAND THAT ANYTHING THEY TELL YOU IS AN "ALLEDGED TRUTH" NOT NECCESSARILY THE FAC
TUAL TRUTH. THE CONSMER MAY OR MAY NOT BE MISLEADING YOU TO--WHICH IS EVEN MORE
THAN IGNORANT BECAUSE IT IS BETTER FOR YOU TO KNOW GOING IN THE TRUTH SO YOU HAV
E THE CORRECT ANGLE TO ATTACK. BUT AFTER HER 16 VERIFICATIONS RETURNED AND YOUR
What is validation or verification? Simply put, proper validation of a debt depe
nds on the specific nature of the dispute. At a minimum, the debt collector is r
equired to confirm with the creditor that the amount being claimed is correct an
d that the person he is attempting to collect the debt from is the person who ow
es it. The most basic response to a validation/verification request would be for
the collector to provide the name of the original creditor and some simple stat
ement regarding the alleged amount owed.
A Word of Caution; we have seen, and you may see, Internet sites exclaiming that
collectors must provide an expansive amount of information, and some will lead
you to believe that if the collector does not answer an exhaustive list of speci
fic validation requests, then a violation of law is created. THIS IS FALSE, FALS
E, FALSE!!
The United States Fourth Circuit Court of Appeals has opined that validation can
be nothing more complicated than this: "Verification of a debt involves nothing
more than the debt collector confirming in writing that the amount being demand
ed is what the creditor is claiming is owed; the debt collector is not required
to keep detailed files of the alleged debt."
See, Chaudhry v. Gallerizzo,
174 F.3d 394 (1999).
*****(So, don't listen to those internet pundits! No, wait! WE ARE SOME of thos
e! Okay, you can listen to US,lol. :)
All that having been said, requesting validation of the debt works for two reaso
ns: First and most importantly, it buys you some time. Under the FDCPA, all coll
ection activity must cease until the attorney puts that verification in the mail
to you. The verification is usually a simple statement signed by the creditor,
and it will not take the collection attorney long to obtain it or mail it, but i
t does "stay" collection activities, including law suits, until answered. Second
ly, it sends a signal to the collection attorney that you are not going to be a
rollover debtor. He knows you will be active in the defense of the suit.
The last point is very critical because a high percentage of collection suits si
mply proceed to default judgment without any response from the debtor. Default j
udgment is a collection attorney's dream. He loves consumers who don't answer la
w suits and, believe it or not, a majority of law suits filed by collection atto
rneys go unanswered because the debtors feel like they can't fight the debt in c
ourt, usually because they feel they owe the money so they have no point in figh
ting.
However, by filing a validation request, you send a very strong message to the c
ollection attorney that you aren't going to give up. He might actually have to g
o to court himself and you may force him to prove the debt.
Also, by filing the validation request, you actually stay the collection proceed
ings. Thus, if a collection attorney cannot move forward against you in a collec

tion suit, the chance of your having a default judgment against you is greatly d
iminished. They don't like that one bit.
HOW DO I FILE A VALIDATION NOTICE?
Validation of a debt is very simple and the response is also very simple. The st
atute requires the collector to give the debtor the name and address of the orig
inal creditor. Some courts have also required the collector to give a simple acc
ounting of the debt, i.e. the principal, interest, and other added fees such as
attorney's fees. Again, we have seen a lot of "on-line" verification/validation
form letters asking for information and documentation the FDCPA doesn't require
the collection attorney to give you. Such far reaching requests immediately tell
the collection attorney you really have no idea what you are doing. The form le
tters also make threats which simply irritate the collection attorney. And perha
ps simply enough, they are wrong.
The FDCPA operates on the least sophisticated debtor standard so you don't have
to be fancy. Just make sure you do it in HAND_WRITING and send it certified mail
AND FAX but NEVER EMAIL----if you ever use email, you automatically autorize th
em to verify via the CRA's e-OSCAR SYSTEM, and since they do not have their own
e-OSCAR DEVICE, it allows them to actually forward the dispute to the CRAs which
are suppose to re-contact that exact same collection agency for validation/veri
fication---now that is an OXIMORONIC PROCESS but one you have unknowingly author
ized. Just HAND WRITE THE COLLECTION AGENCY NEATLY (CRA's not so neatly but read
able and with various colors and font and NEVER on legal sized document printer
pages, We have found greatest success using those little yellow notepads believe
it or not, using RED-GREEN-PURPLE INK COLORS ONLY and never BLACK OR BLUE TO CR
As (any size apge or colors and font to collections is fine---you WANT THEM TO R
EAD IT, no computers to beat at their locations that we have heard of so far, bu
t PORTFOLIO COLLIONS IS IN THE TESTING STAGES OF THEIR OWN VERSION OF e-OSCAR th
at would theoretically link all collection agencies together and like e-OSCAR, H
AND WRITING in barely readable manner will be required at that point should it p
rove successful. BUT FOR NOW, JUST Simply ask the collection attorney to verify
the debt in accordance with the FDCPA and by what manner this verification was
performed (they do NOT HAVE TO DISCLOSE THIS LATTER PART).
See this sample validation letter:
REMEMBER: ALWAYS SEND LETTERS TO COLLECTION AGENTS VIA CERTIFIED MAIL.
It's very important not to be antagonistic. Don't threaten the collector and don
't lie. Don't threaten to sue him or report him to the Bar or say you have an at
torney if you don't. These tactics don't intimidate collection lawyers and simpl
y mark your file for extra special attention. Finally, a certified mail written
request for an FDCPA verification may end the collection process. That is true i
n a very small percentage of cases, but it is worth taking as a first step.
STEP TWO
The second step is to file a SWORN DENIAL. This step is vital, especially if you
don't owe all the money for which you are being sued. Don't lie to the court; i
f you owe the amount in question, you cannot deny the debt. However, seldom does
the collection attorney sue for a correct amount. we'll explain why in another
article, but for now take it on faith that seldom can the collection lawyer just
ify in an accounting the complete debt sued for.
The sworn denial is a simple statement filed with the court once you are sued. T
his needs to be a statement in WRITING that you FILE with the court where you ha
ve been sued. It can be a simple statement, but it needs to be typed, signed, no
tarized, filed with the clerk of the court, and a copy sent to the collection la
wyer. It needs to be a graduated denial. In other words, it needs to say, "I den
y recollection that this is my debt and if it is my debt, I deny that it is stil
l a valid debt and if it is a valid debt, I deny the amount sued for is the corr
ect amount".
The sworn denial is a powerful tool!
It eliminates the Sworn Affidavit of Account that the collection attorney has.
The vast majority of collection suits proceed without a witness for the credito
r.

The collection attorney enters an affidavit, signed by the creditor, that the de
btor owes the debt and that this is the amount.
With that affidavit in hand, the court gives the creditor a judgment.
When a sworn denial is filed, the debt collection attorney cannot rely upon a s
worn affidavit of account, but must instead produce a live witness to testify ab
out the debt. The requirement of a live witness changes the dynamic of the colle
ction action considerably. The likelihood that the action will go no further now
increases again.
STEP THREE
The third step is to file DISCOVERY. This is more difficult than simply filing t
he sworn denial. You need to file a written Request for Production of Documents
asking for a copy of the contract or agreement upon which the debt is based. If
the debt is a credit card debt, it is likely that the debt collection attorney w
ill not be able to secure a copy of the original agreement, or if he is, he will
not be able to do so timely. Most credit card signature agreements are scanned,
or if older, microfilmed and stored away in electronic archives. If it is an ol
d debt which has been sold to a debt purchaser, the likelihood of retrieving the
original signed agreement decreases dramatically. If you are being sued in a sm
all claims type court where discovery is not permissible, ask for the agreement
at trial.
STEP FOUR
The fourth step is TRIAL. SHOW UP! I can't stress that enough. As I've said repe
atedly, the vast majority of debt collection suits proceed to default judgment b
ecause no one shows up to dispute them. Show up and ask for a trial. And remembe
r, the worst thing that can happen is the same thing that would have happened if
you hadn't appeared at all; a judgment. You can't make it worse. If the attorne
y doesn't have his live witness available, oppose the case being continued. Tell
the judge you've taken off work to be there and are ready to go forward. If the
judge does continue the case to a new trial date, show up again.
You will need to educate yourself. You won't be able to equip yourself to spar w
ith an attorney, but knowing a little is better than knowing nothing. You will n
eed to read the Rules of Procedure that govern the court and the Rules of Eviden
ce for that jurisdiction. Look them up online. The Rules of Civil Procedure will
govern how the trial is conducted. The Rules of Evidence will govern what the J
udge is allowed to see and hear.
If you do have a trial and the creditor produces a live witness, attack the witn
ess first and the debt second. The witness can only testify from personal knowle
dge. Generally, the witness has no personal knowledge about you or your account,
but only knows what's in the file he got from the collection department. If he
is going to testify without personal knowledge, but from the records and documen
ts of the business, then he has to have a basis to do so. He needs to be the reg
ular keeper of those books and records and be familiar with how they are kept an
d their contents.
Don't simply accept his answer when the debt collection lawyer asks him if he is
the regular keeper of those books and records and is familiar with how they are
kept and their contents and he says yes. Ask him how long he has been with the
company, in that job, what he does on a daily basis, when he first saw your file
, if he knows from personal knowledge if it's a complete file, etc. You must des
troy his credibility and ability to testify about the papers he has in front of
him. If you can do that, then the debt collection attorney has no case. If the w
itness is actually a good witness and you can't prevent him from testifying abou
t your file, then you need to know your defenses to the debt.
The best defense is the Statute of Limitations. The Statute of Limitations is th
e time limit that an aggrieved party has in which to file a lawsuit. It is a dro
p dead deadline. Find out what your state's is and whether the creditor is beyon
d that date. If it is, ask the court to dismiss the suit.
LAST STEP. Okay, I promised that this would be a four step process but we also a
ssumed you would win at trial, or, better yet, get the case dismissed. Should yo
u lose at trial there is one Last Step.
The last step, should you lose at trial, is to APPEAL. Appeals can take a long t

ime to work through the system; from months to years. That time is valuable and
no collection action such as garnishments can occur during the pendency of the a
ppeal (unless you live a jurisdiction that requires that you post an appeal bond
to stop collection during an appeal). At each step in the process, you increase
your chances that the debt collection attorney will give in and simply put your
file away.
But remember, always be polite, never cuss and don't hang up on him. You simply
don't want to make your case personal.
DISCLAIMER: This article comes with a giant, very real DISCLAIMER. This article
does not and is not meant to give legal advice. WE ARE not YOUR attorneys and we
have no attorney client relationships with you nor your clients, YOU DO HOWEVER
and ultimately it is you that must dive into the most recent and even the far r
eaching court rulings that are similar to your client's situation---but remember
, every State and every in many State's every county within that State has varyi
ng laws and are almost certain to be different than yours at least to some degre
e---->>>a magistrate of the court will give leadway to a layman with attorney re
presentation,however in cases such as a client represented by a firm the magistr
ate will expect the client's repairer to either be an attorney of financial law
or at a minimum have legal creditials equivalent to such (so your client will ge
t absolutely zero leadway at all since the hallmarks of being represented by at
least one credit repair firm even before you exists just by what few letter resp
onses i saw the collections and creditors send back.right now, your client is "f
lagged or coded" and none of their disputes are even being opened at CRAs except
to verify contents inside envelope matches that of outer envelope, if it does a
nd its a "coded or flagged" consumer" there is one way and only one way to have
disputes ever read or taken seriously!
Your client will be required to go to HER LOCAL (NOT CREDITORS---why give them b
enefit?or CRAs or COLLECTION AGENCY's) DISTRICT COURT HOUSE AND FILE A LETTER OF
"INTENT TO FILE LAWSUIT" BUT DO NOT HAVE IT DELIVERED VIA REGISTERED MAIL RETUR
N RECEIPT REQUESTED, PAY THE COURT THE $50-$85 TO HAVE IT HAND SERVED BY A JUDIC
IAL SHERIFF OF THE CIVIL COURTS WHICH WILL NOT GIVE ORDR TO SOME NOBODY AT FRONT
DESK, BUT RATHER HE WILL HELP HIS SELF THROUGH BUILDING AT WILL BECAUSE THAT OR
DER IS ESSENTIALLY AS POWERFUL AS A WARRANT FOR HIM, AND HE WILL HAND DELIVER TO
THE HEAD PERSON OF THE LOCATION. IF THAT PERSON IS NOT AT WORK AT THAT TIME, TH
E SHERIFF WILL ALLOW ONLY SO MUCH TIME FOR THE HEAD SUPPERVISOR/OWNER/ETC. TO GE
T THERE AND ACCEPT/SIGN FOR THE LOITS (LETTER OF INTENT TO SUE) NOTE AND WARN HI
M OF THE $10K FINE SHOULD HE/SHE FELL TO ANSWER THE LOITS WITHIN 10 WORKING DATE
S AND POTENTIAL 180 DAY JAIL SENTENCE! NOW THIS IS NOT LETTER OF LAWSUIT FILED,
IT IS A WARNING------>>>>>>BUT THE EFFECT OF THIS ACTION BY YOU IS INCREDIBLE IN
THAT SUDDENLY YOUR DISPUTES ARE BEING PROCESSED, NOT NECESSARILY DELETED BUT AT
LEAST INVESTIGATED SOMEWHAT. CONGRADULATONS-----YOUR LOITS DID COST YOU A FEW B
UCKS BUT GUESS WHAT, YOU ARE NO LONGER CODED OR RED-FLAGGED!!!YOU CAN NOW FEEL L
IKE A NORMAL CITIZEN WHEN DISPUTING THE ISSUES ON YOUR FILES.
If you use any of the information imparted by this article, you do so at your ow
n risk and I strongly urge you to consult your own attorney.