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*NO GUARANTEES: Consumer Debt Group and its affiliated Law Firm cannot make any guarantees regarding the outcome
of its debt settlement efforts on your behalf. Understand that each debtor-creditor relationship is unique and your debt settlement may
be higher or lower than our average debt settlement of 40% to 60%.
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We base all estimates on our prior experience and industry trends, but we must state that these are
projected estimates and not guarantees. You may finish the program sooner than expected or later than expected.
The length of time and the number of payments necessary to make settlements on all of your accounts may vary based on the timeliness
of your set-asides and possible changes in creditor settlement policies.
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ACCOUNT DELINQUENCY: Understand that your accounts must be delinquent (if they are not already delinquent) in order for our
affiliated law firm to secure settlements on your behalf. It is highly unlikely that there will be a debt settlement for a substantial discount
unless your accounts become delinquent. Creditors may raise interest rates; and late fees, penalties and interest may continue to accrue
while you are in the program.
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CREDITOR HARASSMENT: You may continue to receive phone calls even after our affiliated law firm has notified your creditors to cease and desist.
Creditors are allowed 8 weeks to enter our cease and desist letters into their systems, and some creditors may illegally continue harassment. You will be required
to keep a log of all harassing phone calls, on a form provided by our affiliated law firm, of any contacts by creditors, including the name and phone number of the
calling creditor, the date and time of the call and a brief summary of the conversation. This information allows our affiliated law firm to lodge formal complaints against the harassing creditor.
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CREDITOR LAWSUITS: Creditors may bring a lawsuit against you.
A creditor may in fact begin a lawsuit against any debtor that has become delinquent in payments, regardless of whether or not he or she
is in a debt settlement program. In the event of a lawsuit, our affiliated law firm will attempt to negotiate a settlement and/or a payment arrangement
that is acceptable to both you and the creditor. If they are unable to successfully negotiate, you’ll have two options: 1) Defend the lawsuit, in which
case you’ll incur filing fees and legal fees not covered by the agreement with our affiliated law firm, or 2) Do nothing and allow the creditor to take
a default judgment against you. Such a judgment could result in wage garnishment or other forms of collection.
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TIMING OF SETTLEMENTS: No settlement can be reached with any creditor until you have accumulated enough money in
your settlement set-aside bank account to make a lump sum payoff. This may not happen for months after you’ve enrolled in the program.
Much of the time constraint depends on your commitment and your ability to save money for the settlements. Once an account has been paid
off, the credit reporting agencies should make a notation on your credit file.
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TAX CONSEQUENCES: When a settlement has been reached with a creditor you may be responsible for state and federal taxes on the amount by which the debt is reduced as the credit card company will issue a 1099 for debt relief.
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CREDIT RATING: During the time that you are in the debt settlement program, your creditors may transmit derogatory credit information to the credit reporting agencies. Once the debt is settled, your credit report may show “paid settled,” “settled for less than full amount” or “paid not as agreed.” This could remain on your credit history for at least seven years.
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The agreement with our affiliated law firm does not include dealing with credit reporting agencies or resolving disputed listings on such reports.
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*No debt settlement company or law firm can honestly make any statements of guarantee regarding debt settlement.
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