Incredible FDRS damage reports

Only 5 people submitted their reports, but they painted a very telling picture.

The most detailed report and also the highest damages yet.

It’s incredible what Mark Cella et al got away with …

But it’s also incredible how few people bother to submit their reports.  Can’t expect the attorney general to investigate with only 5 reports.

Demand AG investigation at the new FDRS FRAUD blog

I created the NEW FDRS FAUD site where you can register and submit your damages:

http://liarsandcheats.info/fdrs-mark-cella-debt-elimination-fraud/

Once we have 100 damage reports, we’ll prepare a comprehensive complaint on behalf of those FDRS clients and submit it to the California Attorney General and possibly to other regulators such as the FTC.

I have received at least 100 emails and comments at this blog from people who complained about FDRS, so it shouldn’t be long until we can submit the complaint.

You’re being sued — now what?

I got numerous emails from (former) FDRS clients who are being sued and decided to respond to their questions here.

I can’t give you legal advice and I’m not allowed to give legal advice since I’m not a lawyer.

If you’re being served, you’re probably very stressed and if you’re NOT judgment-proof, you need some time to assess the situation and your options, to look for an attorney to represent you or to file for bankruptcy.

When I was sued a year ago, I requested an extension of time to respond to the complaint and another FDRS client recently also filed a motion for a 4 week extension so he could try to get an attorney.

I’ve also requested continuances for court hearings in my cases and usually that was no problem.

What to file exactly depends on YOUR court’s rules.

If you have x number of days to respond to the summons with an answer or motion to dismiss and you want more time, you should first contact the opposing attorney and request an extension so you can look for an attorney before filing your request with the court.  Many courts require that you “consult” with the opposing attorney prior to filing motions.  Most attorneys will agree to stipulate to an extension.  If not, you might have an FDCPA claim against the attorney based on unfair practices.  I certainly don’t think that it’s fair to deny a request for extension of time to a pro se consumer.

I also had attorneys contact me for an extension and they never filed anything, but usually you do file a stipulation with the court.  And you should include a proposed order according to the court’s local rules.  Of course *** I *** would also consider it an unfair practice (FDCPA violation) if the attorney filed for default judgment after having told you that you have extra time.  Sometimes you just need to give them rope …

I get so much mail from readers, and especially FDRS clients, asking for advice based on the information in their email.

There’s really no way for me to give you advice unless I work 5 – 10 hours just to figure out what’s going on in your life.  It so happens I just posted the other day about this:  http://creditsuit.org/credit.php/blog/comments/reader_mail_telephone_credit_and_bankruptcy_consultation/

Many FDRS clients are dealing with the most infamous collection lawyers and I can easily spend 50 hours on people who are being sued. Researching the court rules and law firms, such as Mann Bracken and Cohen & Slamowitz and then trying to actually talk to an ATTORNEY is extremely time consuming.

IMPORTANT:  If you were served, make sure you get the AFFIDAVIT OF SERVICE from the opposing attorney or court.

It seems that process servers are filing affidavits with FALSE dates.  I’m still floored by the Cohen & Slamowitz DISREGARD of notice that the date was off by a week and that the defendant did NOT received the mailed copy.  In NY, you don’t have to be personally served if they made three attempts and they can post the summons and complaint to the door and mail a copy to the address.

The Cohen & Slamowitz MANAGER (not an attorney) told me that it didn’t matter because they’re not objecting to the defendant’s request for extension.  However, if the process server did NOT mail the summons and complaint, the defendant was not properly served and can file a motion to dismiss.

As far as I know, Cohen & Slamowitz has done NOTHING to investigate these issues even though they were named respondents in the NY AG suit against process servers who falsified the affidavit of service.

I also requested that they provide the FDRS client with copies of all correspondence received by him and even though I had explained that FDRS had sent the letters with his name on it, it looks like Cohen & Slamowitz is refusing to provide those letters.

ULTRA IMPORTANT:  Always RECORD all calls WITHOUT telling them (if legal in your state) because they WILL lie about what was said. 

Be courteous in all communications, don’t call them names, don’t be rude.  If you can’t record, make sure you follow up by email and fax regarding important issues.  Recorded calls are one of the best ways to get counter claims for FDCPA violations.

I hope you understand that I have a gazillion things to do and can’t work free of charge for just ONE person.

I’ve spent hundreds of hours to publicize the FDRS fraud and sure would like to see some regulatory action, but while so many want to be part of a class action, NOBODY is doing anything to make it happen.  And for the record, I never paid FDRS one penny and I have nothing to gain here.

Hopefully sometime soon I’ll get my new site done and feature many different “complaints” about scams, frauds and liars and then we’ll see what THE PEOPLE want me to work on.

Maybe I’ll find the time to post a sample motion for a continuance, please subscribe to this blog for updates.

FDRS update: Lawsuit? Organized AG complaint?

It’s been almost two weeks since I sent out my email alert to over 400 (former) FDRS clients.   I received MANY replies, but not nearly as many as I expected.  And I’m still receiving emails from people who apparently did NOT get my mailing — they either weren’t on the email list or my mail is in their junk folder.

Many responses included the information I requested, such as the total paid to FDRS and whether they’d be willing to contribute a few hundred dollars towards legal and research expenses.

Many were enthusiastic about litigation and offered to contribute.  Some wrote that they were too broke and had no money and a few conditioned financial contributions on a guarantee of recovery of funds.

Most of the (former) FDRS clients who responded either already have creditor judgments against them or they are currently being sued.  Some settled with creditors, some filed for bankruptcy and some have their wages garnished.

Many asked me for advice, but obviously I need a LOT of information about each individual, their financial situation and especially their STATE law to make any recommendations.

I‘ve also been EXTREMELY busy as I am NOT on any government payroll and I do NOT receive any grants.

My almost two years of FDRS research is funded by me and the occasional donation.

I know how FDRS operates because I have worked with several FDRS clients who were sued by creditors and last week one of them was facing a deadline to respond to a creditor lawsuit.

Since I’m not an attorney, I can’t give LEGAL advice.

However, I contacted the law firm listed on the complaint and attempted to get them to agree to an extension.  They IGNORED me.   Then we found out that the process server made false statements on the affidavit of service such as claiming that he served my client a week PRIOR to the actual service date.

Of course I documented my attempts to confer with the attorneys and my client filed a motion with the court to extend the time to respond to the complaint so that he can search for an attorney to represent him.  He needs an attorney to focus on FDCPA violations and on the issues with the service.

Are process servers backdating the service date so that the consumers have less time to respond and it’s easier for the creditors to get default judgments?

So that was a ton of work and then I got a new computer and I’m still installing software and getting everything set up — aside from working on my regular business.

Several FDRS clients had QUESTIONS:

How did you get my email address?

For obvious reasons, I’m not going to disclose my sources.  According to postings and emails, FDRS failed to pay some employees and quite a few felt mistreated and abused.  FDRS and the people who run this scam have many enemies.

A couple FDRS clients seemed a bit hostile towards me and I suggest they direct their hostility towards FDRS.  After all, it failed to protect your data and I’m just letting you know that you’ve been financing a criminal enterprise with your monthly payments.

I will be glad to discuss how I received the FDRS client email addresses with authorities.

Why are you interested in FDRS?

An excerpt from my 11/1/09 email:

… I am NOT an FDRS client, but it always motivates me when criminals threaten to sue me for publishing the truth and I also received many comments and emails from readers whose lives were destroyed by lawsuits.  It’s not just about money — financial problems and litigation stress cause divorces and literally make people sick. …

The FDRS victims are ALL KINDS of people and some are no different than the FDRS owners.

They simply can’t imagine that anyone would care about anything OTHER than getting more money in their bank accounts.

Some people emailed several times and became upset because I didn’t respond to them.  I have NO obligation to respond to anyone and to waste my UNPAID time on people who are too lazy too READ the entirely FREE information.

I provided numerous links with RELEVANT information in my email.

The GOOD News

Apparently many of the recipients of my email decided to stop making payments to FDRS.  FDRS decided to spread a bunch of lies about me, including that I’m a criminal and that I have been arrested numerous times.   If you believe these totally unsubstantiated and obviously FALSE allegations, please continue to pay FDRS.

One person asked me for a response, so here you go:

  • There is no such thing as a certificate of NOT being a criminal.  So the best I can come up with is my California real estate broker license:
    http://www2.dre.ca.gov/PublicASP/pplinfo.asp?License_id=01007950
    You do have to pass a background check to get a license and any convictions result in revocation of the license.

I WOULD sue FDRS and the persons responsible for their defamation (I have NEVER been arrested for anything) if it was possible to serve them.   But I’m not going to spend thousands of dollars just to file a defamation lawsuit and to locate those lying scumbags.

If anyone at FDRS feels that I’m defaming them, I hereby REPEAT my offer to accept service by fax because I’d greatly appreciate the opportunity to document my allegations.

Simply fax the waiver of service and the filed complaint to 571-222-1000 and I will ACCEPT service.

Mark Cella and his goons are criminals by any definition. That they chose to attack me as they did indicates that I’m successful and that many people stopped paying them and that’s GREAT!!!

What’s next?

I contacted attorney Peter Lago who had posted here that he was looking for people willing to testify for one of his clients, but I didn’t receive a response.

Finding a reputable and competent attorney is not easy.

Quite a few of the FDRS clients are willing to contribute towards a retainer for an attorney, but “somebody” would have to come up with the total amount available and “somebody” would have to prepare a case summary and exhibits and then contact REPUTABLE attorneys.

“Somebody” would have to ensure that it’s not going to be another lawsuit with only the LAWYERS benefiting.

As my long-time readers know, most class actions are nothing but a lawyer scam — they get paid and the class members get a coupon or $20 … it is unbelievably pathetic.

Considering that ALL FDRS clients would be class members and SOME are morons just like Mark Cella and Dan Lyle and only want to TAKE but NOT contribute, I would suggest that litigation should be limited to FDRS clients who are committed and who are not just freeloaders.

On the other hand, I have received quite a few emails from people whose lives have been ruined and who really don’t have any money.  SOME might be able to contribute in other ways.  I’m not sure sure how to deal with this.

Additionally, some responses contained qualifiers such as that they’d be willing to contribute to a lawsuit IF they’d get their money back.  Yeah right.  You don’t have to pay attorneys when they expect to get paid by the defendant.  Conducting discovery and paying for asset search is a major expense — as I explained in my email.

Preparing a JOINT complaint with the California attorney general?

It might be most effective to collect the information of MANY FDRS clients who did NOT get what they paid for, prepare a statement for each client including what they expected, what they paid and what happened — less than half a page per person.

Submit ONE complaint summarizing the issues to the Cal. AG and include the individuals’ statements along with the proof that FDRS defrauded its clients.  I already have many documents proving their illegal practice of law resulting in SANCTIONS against the FDRS clients and MANY documents including the court filings, sanctions and judgments.

Would anyone like to pay an attorney to take on this task?

I’m guessing that it would take a couple of hours per FDRS client to prepare the statements.  Preferably the FDRS online account summary at https://www.fdrs.org/login.php would be submitted as it contains all payments, the enrolled accounts and notations regarding correspondence received and sent regarding all enrolled accounts.  However, some wrote that they no longer have access to their account online.

Pool resources to DEFEND against lawsuits?

Since many FDRS clients are being sued by creditors and they are facing DEADLINES, that should be a priority.

However, court rules and laws vary by STATE and the FDRS clients are being sued in STATE courts.  While legal concepts are similar, the rules and laws can vary substantially.

I’ll elaborate more in a new posting.

My NEW website

I will be starting a NEW website about all kinds of scams and I will be working on the initial setup.  There will be multiple blogs about DOCUMENTED frauds as well as free speech issues.  FDRS is NOT the only scammer in the business and when looking at the BIG picture, a minor player.

I’m documenting fraudulent FICO scores and systemic credit reporting problems impacting on many MILLIONS of people with not the SLIGHTEST clue why they’re paying over 20% or maybe even 30% interest and why their insurance premiums are increased due to their credit scores.

And I’m still building my house in the high desert and I have electrical work to finish and sheet rock to hang before winter.

I will be posting some key FDRS documents ASAP.

Please understand that I have to earn a living and I have many other projects going.  I hope that at the very least people stop wasting more money on FDRS and I’ll think about how to proceed.

If YOU have any ideas, please post.

I have the email addresses for all currently enrolled FDRS clients

I’ll be sending the link to this blog to all of them and hopefully most will have the brains to stop making payments to FDRS.

This is also an opportunity to do MORE than to stop paying. This is an opportunity for the victims to join forces and instead of paying FDRS, use the money to pay an ATTORNEY to pursue FDRS on behalf of ALL defrauded victims.

So many FDRS clients are being sued and the FDRS “self help center” is totally worthless as the court rules are DIFFERENT in every state.

These sample filings will most likely get you nothing but a MUCH HIGHER judgment against you because the creditors will most likely be able to add their attorneys fees for the required responses to the judgment.

Because many of the FDRS proposed filings are FRIVOLOUS, the creditors may be awarded SANCTIONS as recenty in an Arizona court.

If the victims set up a fund, they could also allocate money to have attorneys write the motions to join FDRS to the creditor lawsuits for EACH state or they could request that the lawsuits be put on hold, they could answer or in the case of debt buyer suits, file motions to dismiss.

If everybody puts just one monthly payment in a trust account administered by a REPUTABLE attorney, many thousands of dollars are available for private investigators, research to trace the FDRS assets and of course court filings.

This is a wonderful opportunity to not only get cash, but to also do all the work for the lazy and corrupt regulators and specifically the California AG who continues to condone the FDRS fraud.

Mark Cella, Dan Lyle and the other criminals who cooked up this fraud need to go to prison.

The fraud and lies continue: DEMAND to speak to your attorney

As a reader just posted, FDRS continues to claim that they are fullfilling their obligations by providing their HORRIBLE self-help site. I looked at the posted documents and they are GARBAGE. NOBODY will ever prevail in court by following the HORRIBLE legal advice they are providing.

You need to DEMAND to speak to your attorney as per their promises.

From the FDRS Membership Timeline provided to new clients:

Attorney Enrollment: the client is contracted with our head law firm, after·their 2nd payment has been made.

For those of you who foolishly threw away all documents, here is the FDRS Membership Timeline:

The FDRS Membership Timeline
 

If you’re going to fight for your rights and you “chat” with the FDRS scum, feel free to provide the link to this page.  While they claim that attorneys are only for federal suits, there is NO such clarification in their WRITTEN promises.

And just in case you have no clue whatsoever, debt collection suits are NEVER filed in federal court as jurisdiction is in STATE court.

Demand to speak to the attorney who they contracted with after receipt of your 2nd payment.  That’s when even the most gullible FDRS victims ought to finally figure out that they got scammed.

Are YOU as incredibly stupid as David?

Name: David
Email: DavidRaney@comcast.net
Website:
http://creditsuit.org/credit
message: Christine,
Do you even have a dog in this hunt? I see you advertise for a debt reduction company on your website. What is the problem with a debt elimination company except for the fact they seem to be working. FDRS is doing what it said it would for me. I’m two payments from paying them the agreed upon fees and I haven’t had any problems with B of A or with American Express. I was told they sold my debt to a collection agency, but I honestly haven’t heard from anyone yet. The only thing upsetting me is you and the BS you have put out about FDRS. You’ll have to do better than your doing to convince me I’ve been screwed. I notice you take donations. What is it your doing to rate a donation? David

If so, continue to send them your money.

Yes, FDRS is still there, BUT …

I’ve been getting lots of emails about FDRS including one from a reader who did a little research and noticed that https://www.fdrs.org/login.php still displays, but I don’t know if it’s functional.

https://www.fdrs.org is apparently FORWARDED to http://www.org.com/ and I can only guess that they WANT people to think that they’re out of business to keep them from suing FDRS.  It could also be that they took the front page down to keep regulators from pursuing them.

In other news:

Many creditors and debt buyers are filing lawsuits against former FDRS clients and I’ve done a little research on how to file a motion for joinder and I posted some attorney filings at the CreditFactors subscriber knowledgebase

There is NO class action against FDRS at this time that I’m aware of. 

I’m still considering contacting attorneys and creating a database of FDRS victims who lost money and the amount they paid, but that will depend on how many FDRS clients subscribe to CreditFactors.   It might even be possible to file one lawsuit for several victims (NOT a lenghty class action) and pool resources to make the litigation more affordable.  I still think that getting the Cal. AG to freeze and recover assets is the best way to go.

I’ve been incredibly busy with my own litigation last week.  This week I’ve been dealing with a client’s collection, see my posts about the MANY LHR violations of the Fair Debt Collection Practices Act at  LHR refusal to validate

All of you without the cash to settle your FDRS “eliminated” debts and who don’t qualify for  bankruptcy ought to start WORKING. 

Yes, it’s a nasty four letter word, but it IS a lot of WORK to learn how to defend yourself, to learn about the law, to record the phone calls, to organize all collection letters, to review credit reports, to dispute factually, etc. 

You have a choice:

Do nothing, risk getting sued and then get judgments against you and possibly having your wages garnished or start WORKING.

And if you need a good laugh, watch the Long Johns “Just This Once”.

As my LHR documentary shows, they’re absolutely right.  Bank of America apparently accrued 26% interest on charged off accounts and sold one account with an about $2,500 balance in 7/04 to LHR, claiming that my client owed $6,500 a few years later.  LHR now demands $7,900.

Don’t forget that BofA CREATED the money out of nothing.

New FDRS URL: selfhelpcenter.us

There’s nothing at the domain except a login screen: http://www.selfhelpcenter.us

Domain Name: SELFHELPCENTER.US
Domain ID: D22190317-US
Sponsoring Registrar: ABACUS AMERICA, INC. D/B/A NAMES4EVER.COM
Sponsoring Registrar IANA ID: 52
Registrar URL (registration services): whois.name4server.com
Domain Status: clientDeleteProhibited
Domain Status: clientTransferProhibited
Domain Status: clientUpdateProhibited
Registrant ID: LCMN4
Registrant Name: Federal Debt Relief System
Registrant Organization: Federal Debt Relief System
Registrant Address1: 915 W Trimble
Registrant City: Berryville
Registrant State/Province: Arkansas
Registrant Postal Code: 72616
Registrant Country: United States
Registrant Country Code: US
Registrant Phone Number: +1.8779438600
Registrant Email: fdrs07@yahoo.com
Registrant Application Purpose: P1
Registrant Nexus Category: C11
Administrative Contact ID: LPJ25
Administrative Contact Name: Federal Debt Relief System
Administrative Contact Organization: Federal Debt Relief System
Administrative Contact Address1: 915 W Trimble
Administrative Contact City: Berryville
Administrative Contact State/Province: Arkansas
Administrative Contact Postal Code: 72616
Administrative Contact Country: United States
Administrative Contact Country Code: US
Administrative Contact Phone Number: +1.8779438600
Administrative Contact Email: fdrs07@yahoo.com
Administrative Application Purpose: P1
Administrative Nexus Category: C11
Billing Contact ID: KPHHU
Billing Contact Name: Federal Debt Relief System
Billing Contact Organization: Federal Debt Relief System
Billing Contact Address1: 915 W Trimble
Billing Contact City: Berryville
Billing Contact State/Province: Arkansas
Billing Contact Postal Code: 72616
Billing Contact Country: United States
Billing Contact Country Code: US
Billing Contact Phone Number: +1.8779438600
Billing Contact Email: fdrs07@yahoo.com
Billing Application Purpose: P1
Billing Nexus Category: C11
Technical Contact ID: LCMN4
Technical Contact Name: Federal Debt Relief System
Technical Contact Organization: Federal Debt Relief System
Technical Contact Address1: 915 W Trimble
Technical Contact City: Berryville
Technical Contact State/Province: Arkansas
Technical Contact Postal Code: 72616
Technical Contact Country: United States
Technical Contact Country Code: US
Technical Contact Phone Number: +1.8779438600
Technical Contact Email: fdrs07@yahoo.com
Technical Application Purpose: P1
Technical Nexus Category: C11
Name Server: DNS110-1.NEXCESS.NET
Name Server: DNS110-2.NEXCESS.NET
Created by Registrar: ABACUS AMERICA, INC. D/B/A NAMES4EVER.COM
Last Updated by Registrar: ABACUS AMERICA, INC. D/B/A NAMES4EVER.COM
Domain Registration Date: Wed Sep 09 19:00:19 GMT 2009
Domain Expiration Date: Thu Sep 08 23:59:59 GMT 2011
Domain Last Updated Date: Thu Oct 01 03:40:33 GMT 2009

So they just registered the domain to be able to continue to take the monthly payments from people who really don’t have a clue or are as stupid as this moron:

 

Name: David
Email: DavidRaney@comcast.net
Website: http://creditsuit.org/credit
message: Christine,
Do you even have a dog in this hunt? I see you advertise for a debt reduction company on your website. What is the problem with a debt elimination company except for the fact they seem to be working. FDRS is doing what it said it would for me. I’m two payments from paying them the agreed upon fees and I haven’t had any problems with B of A or with American Express. I was told they sold my debt to a collection agency, but I honestly haven’t heard from anyone yet. The only thing upsetting me is you and the BS you have put out about FDRS. You’ll have to do better than your doing to convince me I’ve been screwed. I notice you take donations. What is it your doing to rate a donation? David

It’s truly incredible how many idiots roam this planet.  

This guy is so stupid it must hurt.

Since this idiot’s AmEx account was sold, I hope HE gets sued by the collector like another FDRS victim.  She just got the summons from infamous debt buyer Asset Acceptance.

Readers wrote a gazillion times how convincing the FDRS salespeople are.  Of course I realize that while I’ve been working in the finance industry for over 20 years, most people don’t have a clue.  But when someone actually read my documentation and he still doesn’t get it, he deserves what he has coming.

Since January 2008, yes, that’s 2008, I’ve been exposing the FDRS fraud at my websites — entirely free of charge.  NONE of the people who read my warnings and decided not to sign up sent as much as a dime in appreciation of my efforts.

But what REALLY bites is to see how many stupid people there are.

If EVERYBODY made an effort, submitted their PUBLIC complaints to regulators and DEMANDED action, we’d see some action.  I have no dog in this hunt.   I researched FDRS because I had about $90k in unsecured debt and it sounded great.   I found that they’re a fraud and I was just trying to spread a little truth.

Why do I bother?

THAT is the million dollar question.  Did my hundreds of hours of FDRS research do anything at all?

And for the record, I defaulted on the $90K in credit card debt.  Nobody sued me — yet.  And I paid NOBODY, I just stopped paying my debts.  And when a creditor sues ME, you can be sure that I’ll put up a fight, conduct discovery and all filings will be posted. 

Please see my press release about my WaMu account for more info:

Open Letter to WaMu: My refusal to pay my $8,000 WaMu (Providian) VISA card due to the 26% interest rate

NOBODY needs to pay criminals to stop paying their credit cards.

FDRS finally OUT OF BUSINESS

I’m sorry I haven’t posted in a while, but I’ve been very busy with the doctor [CENSORED] case and preparing my unfinished house for the winter. 

So apparently the FDRS phones are no longer answered — the rats left the sinking ship.

I’ve been getting emails from desperate FDRS clients who are being sued almost daily.  For those of you who think that you’d be better off if FDRS was there to “help” you, think again.  Everybody who wrote to me about their ”help” with the lawsuits LOST in court.   So the only thing you’re missing is more aggravation, frustration and stress.

I have yet to get to the California AG complaint — it is a lot of work to prepare the many exhibits.   While I will be asking them to COMPENSATE all FDRS clients lost money AFTER they received complaints, that’s very unlikely to happen.

Of course the California Department of Justice is guilty of allowing FDRS to defraud and HURT people while they COULD have shut them down and recovered funds.  They’re a bunch of morons of the first degree, almost as bad as Mark Cella and the criminals at FDRS and the OTHER debt eliminiation scammers who still operate.

I’m going to start a NEW site for my AG complaint and many other frauds and the regulators who REFUSE to do their job. 

To the many people who got scammed by FDRS and are writing to ask me for help:

PLEASE read my last post:

Reader mail: court hearing and NO help from FDRS

While I COULD write your filings, I won’t.  I’m not a lawyer and it is a felony in most states to practice law without license. 

Readers keep asking me what I CAN do for them.

A few months ago a process server attempted to serve one of my clients with the summons and complaint.  The moron process server told the building manager that he was trying to serve a debt collection suit (ILLEGAL DISCLOSURE!). 

After I contacted the DEBT BUYER’s attorney about the process server’s illegal conduct as well as issues with the debt, they apparently decided not to pursue the matter.  I was ready to look for an attorney to take my client’s case on contingency because SHE had claims against THEM.

I don’t have the slightest clue what I can do for YOU until I spent a few hours to get to know you, your debts, your finances and your credit. 

I am NOT a “debt settlement” company.   Most companies specializing in debt settlement will simply contact the creditors, get a settlement offer and then charge a percentage of the SAVINGS (the difference between the full amount and the settlement).

While I only charge a flat fee ($300 for Credit Activists or $600), I will not even contact a creditor until I determined that it makes sense to settle.  And of course you have to have CASH to settle.  SOME debts can be settled for as little as 10% of the outstanding balance, but it all depends on the creditors’ current policies.

I’m not in the business of settling debts, but instead I explain to you your options based on YOUR situation and I help you decide what’s best for YOU.  Most of my clients who initially want to settle debts don’t settle at all because settlements don’t benefit them.  There is a lot more info at http://creditfactors.com/subscription-and-services/debt-settlement/

There is still a chance that money will be recovered from FDRS and the criminals involved in the fraud.

A few years ago I investigated penny stock frauds and it is surprising to see that even years later the FBI / SEC can recover funds from offshore banks and the defrauded investors actually get checks.

The problem is of course that the regulators only pursue very few criminals.  While the Cal. AG’s refusal to shut down FDRS and freeze the bank accounts is deplorable, if ENOUGH people raise hell, they may HAVE to do something.  

They COULD arrest Mark Cella, “Dan Lyle”, Kathy Quinn, et al and then offer a lower sentence for cooperation and restitution. 

There must be MILLIONS stashed away.

How do you force the regulators to get them? 

I hope my published complaint will help.  I’ll make an effort, but since most of my work is free of charge, I can only spend limited time on FDRS.

YOU need to publish YOUR complaints and make some noise. 

Send YOUR complaint to the Cal. AG and to the FTC and if you don’t live in California, also mail it to YOUR AG.

Reader mail: court hearing and NO help from FDRS

Reader mail:

I see info on a conversation with Gayle Weller regarding investigation of FDRS. I too apparently have been scammed and now can’t reach anyone at the company and am awaiting documents to file for my court hearing in a few days.

How can I file a complaint with Gayle Weller?

Mail it to:

California Attorney General
Public Inquiry Unit
PO Box 944255
Sacramento, CA 94244

Is there potential of class action lawsuit?

Not unless a big law firm is willing to sue the California AG office for failing to shut FDRS down.  Maybe the state has immunity, I have no idea.  It’s extremely unlikely that you’ll get attorneys to sue FDRS unless you pay the attorneys many thousands of dollars because FDRS is UNLIKELY to pay a judgment and there are no assets.

I have mounds of paperwork and can ‘prove’ my case. thank you!

Send it to the Cal. AG and YOUR state’s AG if you don’t live in California.

And to all who are sued:

File a motion for continuance and/or a motion to join FDRS, Mark Cella and the people who sold them the FDRS fraud.

  1. Since FDRS promised to assign an attorney to you and now FAILS to respond, you should get at least a month to be able to look for an attorney, learn about the law yourself, try to get FDRS to pay or settle the debt and/or research whether you qualify for bankruptcy.You MUST provide documentation to the court, such as the FDRS promise to assign an attorney and your emails/faxes to them requesting assistance.You might want to include copies of some of my relevant posts here.
  2. Provide a copy of your AG complaint to the court.

People who don’t qualify for bankruptcy and are NOT judgment-proof (especially if wages can be garnished — that’s STATE law) should consider settling lawsuits or possibly all their debts.

If your debt has been SOLD by the bank and a DEBT BUYER sues you, there’s a good chance that you can get the case dismissed because they can’t document their claims and maybe you can even get a check from them for Fair Debt Collection Practices Law (FDCPA) violations.

As always, RECORD all collection phone calls and keep all collection letters.

I continually see truly outrageous misconduct and illegal collection practices.   ATTORNEYS who sue you have to comply with the FDCPA and many don’t.

If the original creditor (bank) sues you, be sure to conduct DISCOVERY and have them admit that they CREATED the money out of thin air.  I’m sure you all watched The Money Masters DVD FDRS sent you.

We’re all being SCREWED by the bankers who DARE to get the money they lend entirely FREE and then charge 30%+ interest!

If WE could create money to pay our debts as they create the money when they make the loans — electronically and instantly — we’d have no problem PAYING our debts.

Educate yourself and stand up for your rights!

More info is posted at

7/09: Chase forgives the debts of account holders defrauded by Hess Kennedy debt elimination scam

Please note:

I am NOT paid by the government or anyone else to research FDRS and I don’t receive many donations.  However, I recently had an FDRS victim who was sued PAY me for a review of his situation and to try to get FDRS to pay his debts and he then made a donation of $200.  I wrote the demand letter to FDRS for him and that’s why I’ve called Gayle Weller with the Cal. AG and I posted my declaration for his court case:

My declaration to have FDRS, Mark Cella, Herman Lewis and Kathy Quintos added to creditor suit

Please note that I am NOT an attorney and I cannot accept payment for legal advice.

Arizona attorney Hammerman recently accused me of giving legal advice and I will be asking the Arizona AG to do the work I have been doing.  After all, he gets paid for it and I don’t.  I’ll ask the AZ AG to put lawsuits against FDRS victims in Arizona courts on hold until he can determine whether any funds can be recovered from FDRS and their people.

My expertise is credit reporting, FICO scoring and settling debts IF that’s what you want and SHOULD do. Please see my business site CreditFactors for more information.

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