This article continues the review of “Debt Cures “They” Don’t Want You to Know About” by Kevin Trudeau. In Part 1, I commented favorably on Trudeau’s explanation of the fees, hidden interest, and charges imposed by the credit industry with silent approval by the federal government.
The purpose of the review is to examine whether Trudeau, who has had extensive involvement with credit card fraud and the Federal Trade Commission for some of his previous books, makes any sense in this latest self-help promotion or is he making money selling empty promises?
Chapter 4 in his book deals with elimination of debt through the age of the debt. Trudeau’s Chapter 4: Eliminate Your Debt starts out strong but then provides incorrect information. Trudeau points out that there is a statute of limitations on collection of debt. He points out that very old debt is purchased by debt buyers and that they cannot prove that you owe the debt. He advises waiting the debt buyer out until the appropriate statute of limitations has expired and to not pay the debt.
Trudeau provides a chart with each state’s laws for its statute of limitations for Open Accounts v. Written Contracts. He lumps credit cards into open accounts. This may or may not be true under the statute or under case law in your particular state.
Some states may have laws or codes governing the time limits for filing civil suit regarding contracts. However, state court rulings may take precedence and make the effective statute of limitations for consumer contracts or debts earlier or later than state law. For example, recently the Georgia Appellate Court held that a credit card account statute of limitations would fall under the written contract statute of limitations (a considerably longer period of time than the statute of limitations for an open account).
In addition, some store credit cards fall under an entirely DIFFERENT statute called the UCC (Uniform Commercial Code) which has been adopted by most states as a uniform code. The good news is that the UCC statute of limitations is considerably shorter. The bad news is that a consumer needs legal advice as to whether the card is a true department store card or a credit card.
The problem here is that there are too many variables that can cause bigger issues–while you are attempting to wait out the appropriate length of time, the debt buyer can come after you with a lawsuit. If successful in the lawsuit, the debt buyer can then garnish wages (in most states) or attach/seize property. Trudeau’s method has a chance of success but has a higher risk to the consumer.
The moral to Chapter 4 is to approach cautiously and seek legal advice. If you decide that you only have to wait the open account statute of limitations and instead it is the contract statute of limitations, you have made a decision on bad information. Chapter 4 gets a lower grade-some good information, clearly presented; bad information also clearly presented.
This Chapter should come with a big bold warning: GET LEGAL ADVICE FROM AN ATTORNEY IN YOUR STATE BEFORE USING THIS CHAPTER!!
