• Credit Restoration
• Consolidation - Debt Settlement
• Mortgages Loan Modifications

Credit Restoration:

Is credit repair legal?

Absolutely! It is your legal right to dispute items on your credit report. Madison Law Center, LLC exercises your legal rights pursuant to the Fair Credit Reporting Act, the Fair Credit Billing Act, Truth in Lending Act, and Fair Debt Collection Practices Act, as well as other applicable Federal statutes.

Madison Law Center, LLC helps consumers with credit reports that are inaccurate, misleading, incomplete or contain incorrect information. If your credit report is 100% completely accurate and correct, Madison Law Center, LLC can not offer any services that would improve your credit profile. Be advised that any company that claims it can improve a 100% accurate and correct credit profile may be violating Federal Statutes.

We recommend that you stay away from services that recommend that you attempt to obtain a new/alternate social security number, attempt to create a consumer credit profile under a EIN, or create "fake" credit profiles by intentionally reporting false data. These tactics can be illegal and/or unethical and, if caught, can result in significant personal liability.

How long does credit repair take?

Our clients typically start seeing results in 45-60 days. Because everyone's case is different, some cases are completed in that time, and others can take 6 months or longer. It really depends on the type and number of items that need to be addressed in the credit profile. Successfully repairing credit requires persistence, patience and experience.

This is where Madison Law Center, LLC's expertise saves you valuable time. To effectively dispute incorrect information on your credit report, the key is knowing the valid disputes' and understanding the methods used by the credit bureaus in order to submit personalized disputes that meet their requirements and warrant a timely response. In addition, we offer a valuable time-saving service, known as the Fast Track Program, which can be applied to any of our custom programs to expedite your credit report repair process.

Can I repair my own credit report?

Depending on your time, patience, perseverance, and complexity of your case, you can successfully dispute inaccurate credit report items on your own. However, credit bureaus' strategies and tactics make the process often time-consuming, overly-burdensome and ineffective for the consumer. Disputing items is not difficult; getting results is.

Why should I choose Madison Law Center, LLC?

We Get Results. Madison Law Center, LLC provides the following advantages:

1. Our programs were designed by attorneys with a complete understanding of your legal rights under applicable Federal Statutes.
2. We have a phenomenal record with the Better Business Bureau.
3. We stay current on consumer law as it pertains to credit repair and credit bureaus to make sure that our clients receive the best possible results.
4. Your privacy and confidentiality (especially in regards to your social security number, credit card information and credit reports) are protected by state-of-the-art encryption technology.
5. Our Customer Service Guarantee is effective from day one. You do not have to be a client for any particular amount of time before you are protected by our guarantee. Compare that to other firms that often require you to be a client for 12 months before their guarantee protects you.

Why choose Madison Law Center, LLC instead of another credit
    repair firm?

There are several factors that set us apart from our competitors. Madison Law Center, LLC prides itself on our results, superior customer service and utmost respect for clients.

We stay current on consumer credit laws and economic issues, and we utilize the newest technology and proven techniques to ensure successful removal of inaccurate credit report information for our clients.

What about my spouse?

Madison Law Center, LLC is proud to offer a couples' discount for couples that seek our services. To qualify as a couple, we simply require each client to have the same mailing address.

Although you sign up as a couple at a discounted price, we still set up two separate accounts to ensure the best service and results possible.

How do you dispute joint accounts?

As we deal with information on your credit reports, we handle joint accounts in the same meticulous manner as individual accounts and we will dispute the information in your name only. Keep in mind that deletions resulting from your disputes may be deleted from the other person's credit report as well.

If you intend to apply for credit together in the future, make sure that both of your reports are in good standing.

How are credit scores affected during the repair process?

As Madison Law Center, LLC is engaged in the dispute process with the credit bureaus, your score may change periodically. When disputing 'negative' information on your credit report, the credit bureaus will remove the item(s) in question until it is verified, modified, or deleted.

Since we are disputing 'negative' items on your report, your score may increase during the process because the negative item is removed until it is verified. This temporary score is not necessarily an indicator of your final credit score. (Disputing personal information such as an incorrect address or date of birth will not affect your credit score.)

Upon completion of the dispute process, your credit report will then show the new score. Keep in mind that each credit bureau has different criteria for determining your score, which is why your score varies from bureau to bureau.

How do I send you my credit reports?

Before you send us your reports, remember to make a copy of them and any other relevant documentation for your records. The most efficient way to get us your reports is to order them online and email them to us as an attachment, preferably as a .PDF. You can also physically mail "COPIES OF THEM" to us. Go to our Contact Us page to get mail and fax information.

If you ordered your reports online and experience any difficulty in downloading or forwarding them to us, please contact us and we will walk you through the process. We will inform you upon receipt of your credit report.

Can I get a free credit report?

By September, 2005, every consumer will be able to get a copy of their credit report for free. A recent amendment to the Federal Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies to provide you with a free copy of your credit report, at your request, once every 12 months, from annualcreditreport.com.

Can you remove bankruptcies from my credit report?

Madison Law Center, LLC has successfully removed bankruptcies from our clients' credit reports.

Should I file bankruptcy?

It would be irresponsible for anyone to recommend (or not recommend) bankruptcy to you without an in-depth, qualified evaluation of your situation. Many bankruptcy lawyers offer a free initial consultation, so if you are seriously considering bankruptcy, shop around and meet with a few lawyers who offer the free consultation and see which firm you feel would most effectively serve your needs.

Chapter 7 Bankruptcy and Chapter 13 Bankruptcy are legal proceedings that are available to a person in severe financial distress. Bankruptcy laws provide for the development of a plan that allows a debtor, who is unable to pay his creditors, the opportunity to resolve his debts through the division of his non-exempt assets among creditors (depending on the bankruptcy chapter filed)

For qualified applicants, bankruptcy can mean a fresh financial start and an opportunity to build a secure future. But remember, bankruptcy does have far-reaching and long-lasting effects, and should be considered only as a last resort.

Can I dispute on my own credit score?

Depending on your time, patience, perseverance, and complexity of your dispute, you can successfully dispute inaccurate credit report items on your own. However, credit bureaus' strategies and tactics make the process often time consuming, overly burdensome and ineffective for the consumer.

When I request my report, does it count as an 'inquiry'?

You may request your report as often as you choose - without affecting your score. You have the right to view your reports as often as you like with no penalty against you.

However, 'inquiries' on your credit report from potential creditors, businesses or employers do count as an inquiry and affect your credit score. This is why we have you order your credit reports and send them to us. Our goal is to improve your overall score and eliminate credit report errors.

Settlement vs. Charge off

As consumers we depend on credit bureaus to report information accurately. Unfortunately, this is not always the case. In fact, it is the minority. Seventy-nine percent of all credit reports contain inaccuracies - meaning that we all must be diligent in monitoring our credit reports and take immediate action when mistakes are discovered.

In our expectations of being treated fairly, we assume that if one negative item on our credit report is considered equal to another item; the credit bureaus have to be fair and accurate when reporting the item.

Credit bureaus sometimes 'generalize' and will argue that 'Settlements' and 'Charge Off' are the same, when in fact, they are not. It is up to us to insist they investigate these items and change the incorrect information, or if they cannot verify the information within 30 days, then they need to delete the item. This is one of your rights under the Fair Credit Reporting Act. We remain steadfast in pursuing these items.

Should I pay off accounts?

When disputing items and accounts on your credit report keep in mind that it is always easier to pursue deletions when accounts have been paid off (zero balance). It is advantageous to pay your account off because:

1. It facilitates the dispute process
2. Further collection activities are ceased
3. It is an agreed-upon financial obligation

Once a collector has an account paid off (and has documented proof), credit bureaus generally do not pursue verifying that information - unlike an open account. As a collection tactic, the bureaus prefer to invest their time and efforts in verifying negative information. Whenever possible, it is in your best interest to pay off your accounts.

Important Note: If a creditor or collector agrees to settle an account for less than the full amount, have them send you a written statement to protect yourself from unethical collectors harassing you for the original balance later.

What makes up credit scores?

Credit scores are used by creditors to measure the 'risk factor' of a consumer who is applying for a loan or credit line. The credit score reflects the budgeting habits and/or financial responsibility of a consumer, through past and present credit accounts. Creditors use the score to 'predict' how a consumer will treat their potential financial obligation.

As a 'snapshot' of your financial history, your credit report is essentially your 'financial fingerprint' and contains information that can be grouped into the five categories listed below. (A percentage of the approximate emphasis assigned for each factor is shown in parentheses after the category; however, keep in mind that these figures are not 'absolute' and companies may consider different factors.).

• Payment History (35%): Your payment history contains information about how you paid your bills and whether you have any delinquencies, late payments, etc. on various types of accounts.
• Outstanding Debt (30%) Your credit score is adversely affected if you owe amounts at or near your credit limit, so if possible, split the balance and transfer some of the debt to a second card.
• Length of Credit History (15%) The longer you have maintained your accounts, the better it reflects on your credit report.
• Recent Inquiries (10%) Recent applications for several new accounts may negatively affect your score. If you inquire about special promotions it should not affect your credit report.
• Types of Credit Currently in Use (10%) Loans from finance companies generally lower your credit score. According to FICO, this is heavily relied upon when there is little other credit history upon which to base a score.

Credit scores range between 300 and 850. The higher your score, the more likely you are to qualify for additional credit. (Scores above 700 are considered excellent.)

While there is a specific formula to calculate scores, it is closely guarded by its originator: Fair Isaac Co. (also known as FICO).

Should I close my paid-off accounts, or leave them open?

We suggest it is best to keep as many accounts paid off as possible. What you choose to do with these accounts once they have been paid off, however, is up to you.

Having credit card balances over 50 percent of the credit limit negatively affects your credit score, so try to keep your balances below half of your credit limit. Naturally, having accounts that are paid off will not hurt your credit score.

Some other things that will affect your credit score are payment history, balances, amount owed on balances, length of credit history and new credit sought. Another factor that helps determine credit scores is how many (credit) cards have debt over 50% of the balance, and how many have low balances.

Why was I denied credit?

There are many possible reasons a creditor decided to deny you further credit. One scenario, for example, is that the creditor receives updated credit reports, only once a year. Their report may be outdated by 11 months and not reflect recently deleted mistakes or your new payment habits and improved score.

When being considered for credit, by law, you have certain credit rights. For detailed information on your credit rights, refer to our Educational Center and download our e-book: What you Need to Know about Credit. Credit is increasingly used by millions of consumers to finance everything from education and houses to entertainment and business opportunities.

The Equal Credit Opportunity Act (ECOA) ensures that all consumers are given an equal chance to obtain credit. This doesn't mean that every consumer who applies for credit will receive it. Factors such as income, expenses, debt, and credit history are considerations for creditworthiness.The law protects you when you deal with any creditor who regularly extends credit, including banks, small loan and finance companies, retail and department stores, credit card companies, and credit unions. Anyone involved in granting credit, such as real estate brokers who arrange financing, is covered by the law. Businesses applying for credit also are protected by the law.

How are credit scores affected by our efforts?

Madison Law Center, LLC focuses on removing inaccurate, misleading and unverifiable information from your credit profile. While this is not a direct action to improve your credit score, our actions will often affect it. Your score is partially based on your entire credit history, and since we are working to correct negative items within your credit history this is likely to have a positive effect on your scores!

Each bureau has a different method of determining your score, and they each have different information and sources. That means they are all going to have different scores for you, and that as we deal with items on your reports it will affect those scores differently.

Consolidation - Debt Settlement

Who is qualified for our program?

Madison Law Center offers the debt settlement program for only people facing financial HARDSHIP. This means people who are late on paying their debts, have little or no ability to pay their debts in the future and are facing a possible bankruptcy.

Who is NOT qualified for our program?

Madison Law Center does not advocate that any person default on their debts. This program is not designed to negotiate debts for people who have reasonable means to pay off their debts. If you have the ability to pay your debts in the normal fashion, then you should honor your debts and do so. This program is NOT for people who have high credit ratings and can meet their monthly debt obligations.

How do you apply?

Complete the form online. A debt consultant will review your information and call you to review your situation. After a debt consultant has reviewed your financial situation and hardship they will determine if you are qualified for our program.

How will Madison Law Center settle my debts?

You will be asked to put aside and save a set amount of settlement funds on a monthly basis. This amount will be determined in your initial analysis based on total amount of debt and will be in line with your income and expense budget. Each person's situation is different and the negotiation process will begin at different times depending on the amount of your debt. Once the creditors agree to a settlement amount, we will present this offer to you. If you approve of the settlement, we will instruct the creditor to fax over the ‘settlement offer’ in writing. Then have a three way recorded conversation with you, the creditor and us to settle the account. Debts can be settled in two different ways; one lump sum or a term settlement. One lump sum is just that, one payment and the account is paid. A term settlement is a settlement which is paid over an extended period of time until the account is paid. Madison Law Center then moves through each debt until all of your debts have been paid and you are debt free.

Who can join Madison Law Center’ program?

Madison Law Center’ debt settlement program is a hardship program. This program is only for people who:

• have a financial hardship
• are late paying their unsecured debts
• have no ability to make payments in the future
• bankruptcy is their only other choice

Examples of qualifying hardships are a loss of income, medical emergency, death of a member of the household who provided financial assistance, or a divorce. If you are currently meeting your monthly debt obligations and are able to continue to do so, then our Debt Settlement program is NOT for you.

Is bankruptcy a better option for me?

Anyone considering our program should also contact a bankruptcy attorney to determine if their situation warrants filing for bankruptcy. Using the Debt Settlement process does not guarantee that you will not have to file for bankruptcy in the future.

Does Debt Settlement have a negative impact on my credit?

YES. Your credit score will decline due to entering this program. How much it will decline depends on your original circumstances. Most of the accounts you place into negotiation are likely to “charge off”, which will reflect negatively on your credit. However, once this charged off debt is settled, the settlement is reported to the credit bureaus. Settled accounts are positive compared to unresolved delinquent debts or bankruptcy. After all the debts have been settled and paid, the credit score should begin to improve since the negative items have been resolved. A high credit score is desirable to have, but if you have a financial hardship and are unable to pay your debts, then your first priority should be to pay your delinquent debts and get back on your feet financially.

Can I still use my credit cards?

NO. All credit cards in the program will not be active and you will not have credit privileges. Any cards you DO NOT put into the program should not be used. This program is for you to get out of debt.

What will I pay for your services?

You will pay a fee which is calculated based on the total amount of debt that an individual brings into the debt settlement program. This program requires one or two down payments then small monthly fees paid throughout the first year of the program.

All costs and fees are always fully disclosed and you are required to sign for approval before you commit to our program.

Do you guarantee that you settle all of my debts?

NO. There is no guarantee that your creditors will negotiate with us or that your debts will be reduced.

Can I be sued?

YES. Your creditors certainly have the right to sue to recover their money. But usually the purpose of the lawsuit is to force a settlement on the matter. In our experience, most creditors would rather not go to the expense of suing and simply try to negotiate a settlement.

Can Madison Law Center stop my creditors from calling?

NO. Your creditors have every right to try and contact you in order to collect a debt. However, we have been successful in eliminating most harassing telephone calls. If your account is in collections; collections agencies have to adhere to the FDCPA Guidelines. If you would like to learn more please read Fair Collection Practices Act.

When I make a settlement my credit gets fixed?

The goal of a Debt Settlement program is to settle your delinquent accounts. When a delinquent account is settled this is reflected on your credit report. A settled account is better than an unresolved delinquent account. Your credit score should improve after successfully completing our program. Since these debts are paid your debt-to-income ratio should improve. Debt-to-income ratios are not part of a credit score however; they are an important measurement by which lenders evaluate applicants for auto and home loans.

Madison Law offers you a credit restoration program after the debt settlement program is done.

Can creditors garnish my wages?

YES. However, this is can be a long process for the creditors. The creditor first has to sue you, successfully obtain a judgment, and then file for a garnishment action. If you’re willing to work with your creditors, wage garnishment can normally be avoided.

What are the tax consequences?

Your creditors will report cancelled/settled debts exceeding $600 to the IRS and you are required to report the same as income on your annual tax return. However, the IRS permits you to write off any “income” from canceled debts up to the amount by which you were “insolvent” at the time. You need to consult your own tax advisor for advice specific to your situation.

Can't I negotiate my debts with my creditors on my own?

YES. You can negotiate your debts with your creditors on your own. As a matter of fact if you successfully negotiate a debt it may cost you less in the long run to use this approach than to use Madison Law Center’ services.

You should note however, that the Debt Settlement process can be a long and complex process for the average consumer. Our debt negotiators have the skills and knowledge of how your creditors negotiate and they have many years of experience negotiating the largest debt reductions. You don't have to spend all of the time and effort trying to negotiate with your creditors and you can rely on our experience to get the best debt reduction possible for you.

Mortgages Loan Modifications

In utilizing the Loan Modification option to bring an asset current,
    can the mortgagee include all fees and corporate advances?

All or a portion of the PITI arrearage (principle, interest, Taxes and Insurance) may be capitalized to the mortgage balance. Foreclosure costs, late fees and other administrative expenses may not be capitalized.

May a mortgagee perform an interior inspection of the property
    if they have concerns about property condition?

Yes, the mortgagee may conduct any review it deems necessary to verify that the property has no physical conditions which adversely impact the borrower's continued ability to support the modified mortgage payment.

When utilizing a Loan Modification option, can a mortgagee capitalize
    an escrow advance for Homeowner's Association fees?

HUD Handbook 4330.1 REV-5, Paragraph 2-1, Section B, Escrow Obligations states: Mortgagees must also escrow funds for those items which, if not paid, would create liens on the property positioned ahead of the FHA-insured mortgage.

Will HUD subordinate a Partial Claim, should a mortgagor
    subsequently default and qualify for a Loan Modification?

If a mortgagor subsequently defaults and qualifies for a Loan Modification, HUD will subordinate the Partial Claim.

When an asset is modified is the homeowner eligible for the upfront
    premium refund at payoff of the loan?

It depends upon when the closing date occurred. For assets closed:

After July 1, 1991 but before January 1, 2001, the 7-year unearned premium refund schedule shown in Mortgagee Letter 1994-1 remains in effect,

On or after January 1, 2001 that are subsequently refinanced, the 5-year refund schedule shown in the attachment of Mortgagee Letter 2000-46 applies, or

On or after December 8, 2004, refunds of upfront MIP are eliminated except, when the mortgagor refinances to another FHA insured mortgage. The refund schedule attached to Mortgagee Letter 2005-03 has been modified to a 3-year period.

Can a mortgagee qualify an asset for the Loan Modification option
    when the mortgagor is unemployed, the spouse is employed, but the
    spouse name is not on the mortgage?

Based upon this scenario, the mortgagee should conduct a financial review of the household income and expenses to determine if surplus income is sufficient to meet the new modified mortgage payment, but insufficient to pay back the arrearage. Once this process has been completed the mortgagee should then consult with their legal counsel to determine if the asset is eligible for a Loan Modification since the spouse is not on the original mortgage.