18 Mar Debt Cures: Does Kevin Trudeau Make Money or Sense? Part 2
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.
Chapter 4 should come with a big bold warning: GET LEGAL ADVICE FROM AN ATTORNEY IN YOUR STATE BEFORE USING THIS CHAPTER!!
Part 1 of my review examines the first three chapters of Kevin Trudeau’s book, Debt Cures They Don’t Want You to Know. (gets an “okay” rating)
- Part 2 of my review dissects Chapter 4 of the book (gets a warning of “Get legal advice from a lawyer in your own state”).
- Part 3 of my review deals with Chapter 5 of the book (gets a warning of “Get legal advice before following Trudeau’s advice”)
- Part 4 of my review examines Chapter6, as Trudeau discusses how to cut your credit card rate. (gets a “doesn’t hurt to try it; don’t expect it”).
- Part 5 of my review examines Chapter 7: Fighting Back. (gets an okay rating).
- Part 6 of my review examines Chapters8-11: Credit Score (gets “good information”)
- Part 7 of my review discusses Chapter 12: Credit Reporting Errors (gets mixed review as he repeats bad information (discussed earlier in Part 3) but generally good information).
- Part 8 of my review examines Chapter 13: Student Loans (gets generally good review)
- Part 9 of my review discusses Chapter 14: Home is Where The Start Is (gets nearly failing grade)
- Part 10 of my review examines Chapter 15: No Bankruptcy (gets failing grade/adds shame)
- Part 11 of my review examines Chapter 16: Big Business (credit card industry)(gets A grade for giving information)
- Part 12 of my review discusses the information presented in Chapter 17: Stealing Candy from Babies (gets okay rating for giving information)
- Part 13 of my review examines Chapter 18: Three Ring Circus (gets failing grade for repeating information already provided)
- Part 14 of my review examines Chapter 19: Slaying the Dragon (gets A grade for giving the math on how long it takes to pay off a 20% credit card with a balance of $8000 with just minimum payments….FIFTEEN YEARS!!!
- Part15 of my review examines chapter 20: Stopping Debt Collectors Cold (gets a failing grade for some good information and then followed by really bad advice: scary!)
- Part 15B of my review goes into more detail about what was scary about Chapter 20.
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