is it possible to settle your debts for pennies on the dollar and have them completely removed from your credit reports as if they never existed well the answer is yes but it's with this little no loophole that I'm about to share with you in this video so let's get into it [Music] okay okay so some of you have heard of what we call restrictive endorsement and I'm just going to give you a little bit of backstory about what it is so essentially what it is is you sending a letter to your creditors and collection agencies in advance and every state is going to be different it might be 14 days it might be 30 days and if you're not sure in your state just do 30 days just to be safe you send them a preliminary letter with some kind of trackable mail that essentially says "I'm going to send you x amount of dollars and this is going to fully satisfy this account." And you list the account number if you don't have the full account number at least list a partial account number as it appears on your credit reports which is Experian Equifax and TransUnion and so the thing about this is you have to be careful because some states don't honor it or some states allow the creditors and collection agencies to fight it in court and I will list what those states are in the description box below this video but even if you do live in one of those states I would still do it anyway because if you have a little bit of money to be able to satisfy some of this debt from your creditors you can literally pay some of these debts for pennies on the dollar and have them completely removed from your credit reports as if they never existed so let's talk about exactly how this whole process works why you want to do it this way and you get started doing it right so here's the thing a lot of you don't want to pay your creditors at all and I get that but you know if you did run up the debt it's you know obviously the good thing to do if you can to pay some of your debt off if you can afford it but the good news is you can pay between five and 10 maybe 15 upwards of 20% of what you actually owe with this strategy so if you owe say Capital One $10,000 you can offer between $500 and $1,000 to satisfy this debt and have it completely removed from your credit reports as if it never existed so it's not going to show a settled or paid as agreed or anything like that it's literally going to be eliminated and and taken off your credit altogether which is what you want because it's permanently damaging your credit right now as it stands and you don't want that anymore okay so let's talk about exactly what restrictive endorsement is and maybe this is a strategy you want to use to be able to get some of this credit some of this negative debt off of your credit reports and so essentially what you're going to be doing is going to my website getdisputletters.com down below in the description box there's no www it's just getdisputletters.com you go there you can download my free dispute letters i also have the restrictive endorsement letter that's now up there as well that you can download and you're essentially going to use that letter now what you're going to do is it's a two-part process all right now first of all I want to back up back up and state that this is only to be used in the event that you're unable to get certain things off your credit so this is assuming that you've already gone through the dispute process already maybe you've already tried to connect with the citor by actually asking for a validation of debt maybe you've done all of these things already and nothing seems to be working if you have not done any of those other things first I strongly urge you to go to my YouTube channel and take a look at exactly how I share with you how to work through the dispute process first do that first and this strategy is an all all else fail strategy which means that if you have not been able to make that work then we do the restrictive endorsement because we're definitely trying to get these off of the credit reports permanently all right so say you've done all that stuff the stuff is just not moving okay and you want it off your credit immediately and maybe you do have a little bit of money to pay some of your creditors maybe you only have a few hundred that's fine whatever you have let's see what we can do to work with that so what we do is we send a letter to the creditors now pay very careful attention to this because people always blow up the comments asking these questions that I cover in the video because they don't want to listen to what I'm saying in the video okay so listen to me very carefully you don't want the letter to come necessarily from you okay it's not going to come from some thirdparty organization it's not going to come from some other random person or pen name or anything like that but you don't want to mention that it's from you you just want it to be a forml looking letter that doesn't basically say it's coming from you or basically coming from anybody and the the initial letter to the creditors and collection agencies is going to be the following it's going to state that you're going to be receiving a check for let's just say $500 to satisfy this debt account number blah blah blah um you know and you're just going to include whatever data and information you have on your credit reports if you don't actually have the full account number so on X date you're going to receive this check 30 days from now and once you cash this check this debt will be considered fully satisfied and you will be removing this permanently off my credit reports immediately after you cash that check okay so that's that's letter number one and again you have to send a trackable mail so 30 days goes by then you send them another letter and so this is basically the letter and the letter is this is just the letter that you can actually download from my my website which is getdisputters.com this is the second letter that they received 30 days later and you definitely want to send this by way of certified mail this means that you have to go into the post office walk in there wait in line and you should send it like this i strongly urge you not to use your personal information up here do not put your name up there if you have a PO box even better just put the PO box information if you don't have a PO box or some other address then just borrow you know your mom or dad's address or your sister brother's address whatever and put that here and then you put the name of the creditor and their information here as it appears on your credit report because their information by law has to appear as far as their full address on your credit report so you'll put that here and then this will be on the back so this will actually have your address now somebody asked me in the comment section does this actually have to have your name no it doesn't you can have like I said a PO box with no name you can put your dog's name if you want to and your address it doesn't have to be your name but it does have to be an address where you can receive this now don't ever re think that they're going to be able to rip this off and take photo copies somebody else had a kind of a moronic you know comment in the comment section that said "Well you know what happens when they take photo copies of this and they know exactly who sending this who's taking all these photo copies us Postal Service person postal carrier walks into their office if it's a actual street address or this actually sits in their post office box if it's going to their post office box which 95% of the time it's going to a post office box some schle rock from the company has to stand in line for an hour and do this once a week or whatever twice a week and go through and actually sign all of these things so how are they taking photo copies of this card before the postal carrier from behind the counter rips it off and pops it in the mailbox that goes then to you no what do they have a pocket xerox machine i mean that's not how life works okay some of these comments it's like nobody thinks anything through anymore which is really upsetting in today's day and age but anyway enough of my rant nobody's making photocopies of this nobody is and even if they are well it's you know Snoop Doggy Dog is here the name of your dog and then your PO box is here if you're that paranoid okay the main thing is that they are signing this this is what we call a wet signature they're going to have you're going to actually have to put in this area here the name of your creditor and the PO box or wherever it's going as per your credit report what it shows there and then they're going to sign and date this side and then when the postal carrier or the postal person behind the counter pops this in the mail you'll receive this about a week or so later and you'll have verification that they received this this document in this envelope okay so you'll also get this receipt by the way just don't tear these off let the postal service person behind the counter stamp this and and rip this off at the time of your transaction please because if you have 10 of these I've seen it time and time again where people will rip all these off and then the postal guy's like "Oh I'm sorry you got to match up these numbers with every envelope." And then the person's holding up the line forever trying to do all that don't do that just leave these attached postal person will give this to you with a stamp okay now that takes care of that now what goes in this envelope you're probably wondering well what goes in this envelope is letter number two remember this is the letter that comes 30 days from the first letter which is just trackable mail the first letter is just trackable does not have to be certified the second letter is certified okay remember we're talking about the actual um the the card and then they're getting a check okay now here's the check now listen to me very carefully okay okay listen to me very carefully this check can be one of two things give me one of several things actually it could be a US Postal Service money order it could be a cashier's check from your bank or it can actually be a business check from a business that you own now if you've watched any of my business credit videos you know that I'm a heavy heavy believer in the fact that if you want to get access to tens if not hundreds of thousands of dollars on unsecured credit to ultimately buy a business build a business invest etc you're going to have to have a business at some point anyway so now might be a really good time for you to do that so if you don't have a business yet maybe maybe you should get a business and then ultimately once you get a business you can get yourself a business checking account and then that way when you have these checks just have the business name on there don't even have your name on it just just your business name and your business address which is ideally not your home address so spend the extra money folks get yourself a little PO box okay you can actually use the street address from the postal post post office so case in point a couple streets you know that way to where my office is I actually have a post office box but the street in which the post office is located is also a street address I can use on my checks as if it's a regular street address you just the the zip code is going to be slightly different and if you're not sure what the address is for your post office go to google.com type in post office near me it will give you the exact address where your post office is the exact street address and the exact zip code now what'll happen is when you go get your PO box and it should be the smallest PO box you can get you want to save yourself a some money what you'll do is you'll use their street address their citystate zip code as if it's as is as is on Google but you'll put number and then the box number next to the street address so if it's it's box number 70 you'll just put uh the street address and then you'll put number 70 the number sign 70 and that's legitimate that is a legitimate street address and that's what I recommend that you do on your business checks is that you have the name of your business not your name anywhere here and your street address for your business okay and again you're going to have to have a business anyway if you're going to start building business credit but that's a different subject for a different day i'm just assuming some of you already have a business checking account in which case hopefully you have checks that don't have your name on it listed as CEO or whatever and if you don't then get yourself some checks from the bank order some and just say "Hey I want some new checks just make sure my name's not on there just my business name." So that's what you should do if you have a business if you don't have a business then you're going to have to use the cashier check strategy or you're going to have to use a US Postal Service money order now the important part of this check is what's said on the back and in the description box below I will mention exactly what you're supposed to say on the back of this check and it's essentially saying that by endorsing this check you are agreeing to satisfy account number blah blah blah blah blah in full you know as paid in full okay and so I will again put exactly what you're supposed to put on the back of this check and so what happens is even if they don't sign it which 99.99% of the time nobody's signing these checks they're just stamping the back of them and then it's just going to be some you know person who's opening the mail that's stamping it they're not even reading it that's not your problem by the way then once this is deposited and and it clears then you can go and dispute everything with with Experian Equifax and TransUnion saying that the account has been paid so I had actually uploaded some new Experian Equifax and TransUnion dispute letters yours will say that this one actually says dispute for inaccurate information you're going to actually say dispute for uh paid in full accounts and so you're basically going to say that the account was paid in full okay so that's what you want to do and then if you wanted to you can actually include the additional information for the restrictive endorsement you can include a copy of this letter that they received the copy of the cash check front and back and a copy of this showing that they received the check okay if you want to go ahead and do the extra steps I recommend you do the extra steps because you're showing that you sent the restrictive endorsement letter you show that they received it you show the front and the back of the check showing that because they endorsed the check they agreed to the terms and conditions and it'll be deleted off now let me warn you doing this right off the bat with the proof part is probably not the recommended strategy i would just do a straight dispute okay just a straight normal dispute rather than sending the copy of the check and all that do that the second time around if it doesn't come off just do a regular dispute the first time around because then the credit bureaus might argue well they didn't agree to this they didn't agree to these terms and conditions you just basically forced it on them and you might be in one of the states where it's not fully legal or fully recognized to do restrictive endorsement and so knowing that information you might not want to push the envelope so far or try to rock the boat that much and so essentially what you should do is once they cash the check and it's going to be kind of tricky when you have a US Postal Service money order because you're going to have to check and see and you're going to actually have to get the draft document of them having cashed it so make sure that you keep all of your ducks in a row make sure you keep those receipts that the tear off receipts from your money orders because you're going to need those to be able to verify whether or not they actually cash your check that's why it's a lot easier when it's cashier's checks and it's definitely easy when this is your business checking account because you can just go online print the front and back of the check when they cash it and that's just much easier and usually there's no cost involved to that so that's the fastest and best way plus when it has your business name on it not your name they don't really know where the money came from okay because here's here's what we don't want to do we don't want to trigger the debt again from day one and and a lot of people don't know this but if you make payments to a debt that's been kind of idle and sitting there for say four years then it could start the debt all over again from day one and many of you don't know but many much of this debt can fall off at the sevenyear mark which means that at seven years in one day that dormant debt should be off your credit reports and if it's not definitely dispute it because it should not be on your credit reports after seven years okay so please note that we don't want to trigger and start over that clock from day one and so what ends up happening is that if you're essentially paying toward the debt and admitting that it's your debt and trying to make good on the debt that can actually backfire this is why when we do our restrictive endorsement letters letter one and letter two you're not actually mentioning who you are you're not mentioning you're not even signing your name you can just scribble some kind of initials at the bottom they don't really know where they're getting this money from could be an attorney could be your brother and sister could be somebody else but they don't know where the money's coming from so you're not actually admitting to the debt at all so it's tricky for them because they don't really know where they're getting this money from they could be getting it from a you know maybe you died and maybe your estate is giving the money up you know they don't know where the money's coming from that's why when you send these letters I don't really recommend that you put any of your personal information here at all because again better off if it's just a PO box no name at all and then that way again they don't know where this money is coming from and then finally going back to the check if it's your business account they don't know who owns the business on top of that they can't levy the account later if they want to sue you so for example if they're like "Nah I don't want to take you know $1,000 for a $10,000 debt i'm just going to sue that person and try to get the full amount the problem is if you use your personal account then guess what they can they now have your account number and they can potentially levy that account after they get a judgment against you so that's why we don't want to use our personal bank account for any of this a business bank account they cannot levy because it's got a different EIN number which is which is essentially the social security number of your company and that's a completely different entity it's like a completely different person it's like if you have a tw if you had a twin brother or sister and that person has a obviously a different social security number they're a different person man so that's kind of how your company is when you have a company that has an EIN number not your social security number you should always set up a company that has an EIN which stands for employer identification number you should always set it up that way and so when you open up your business checking account it is literally a separate entity you're just a signer on that account so they can't levy a business account which means that you can write these checks out and when they cash them guess what they've agreed to the terms and conditions as listed not only in your restrictive endorsement letter but they've also agreed to the terms and conditions on the back of the check make sure that you write it very very clear make sure that you write it allegibly like as small as you can to be able to get as much of it as as you possibly can at the top and then only the very moment that they actually endorse it they're agreeing to the terms and conditions of the restrictive endorsement agreement and then once that check clears like within seconds you should be disputing the amount on your credit reports because in the very least it's inaccurate like they're saying you owe $10,000 but you just paid $1,000 toward that which means technically you still if they really want to push it that hard you would owe 9,000 which means that the $10,000 figure that they're still showing is technically inaccurate so the first round of disputes after this process should be you know this is this is inaccurate or you could say this has been paid in full and then if it still doesn't come off then you need to show documentation showing that you actually went through this restrictive endorsement process including the copy of the letter copy front and back of the check and then copy of this showing that they received it if that still doesn't work then we pull out the big guns and we have to file a lawsuit against both the credit reporting bureaus who are not removing this debt and the creditor themselves because they cashed a check agreeing to the terms and conditions that you presented 30 days in advance with letter number one and then you know 30 days after that with letter number two with the restrictive endorsement legal ease on the back of the check or money order or cashier's check and they cashed it if they did not want to agree to the terms and conditions they could have ripped up the check or mailed it back and they chose not to do that which means that if you decide to file even a small claims lawsuit in your jurisdiction it would be in your jurisdiction because you're the one being damaged not them so it would be in your county you could file on an app i like the Squabble app you can use whatever app you want to file on small claims or just go down to your courthouse and file a small claims lawsuit but you can go to squabbleapp.com file the lawsuit get a process server to serve them and you can sue them for damages which would be the maximum amount in your state against a company company amounts are going to be higher than when you when you try to sue somebody's personal you know person so for example if you know your neighbor's dog attacks your dog and you sue that person that amount is going to be less because you're suing an individual versus if you sue a company which would be Experian Equifax TransUnion those are companies and suing your creditor for cashing the check and not removing it off your credit report even though they agree to the terms and conditions by simply cashing the check okay so this is a way of doing it if you have the money to pay it if you don't have the money don't do it now you're probably wondering well Monica what's the smallest amount I can get away with can I get away with sending them 50 bucks if I owe 5,000 yeah I guess so i mean I I wouldn't try to I wouldn't send a dollar you know that would be way too small of an amount but say you have $50 or $100 and you're trying to satisfy um a debt that's a,000 to $5,000 now that doesn't mean that they'll take it but remember at the end of the day restrictive endorsement is restrictive endorsement you gave them the paperwork with letter number one and then you gave them the paperwork with letter number two with the restrictive endorsement check that they apparently agreed to when they stamped the back of it and endorsed it and cash that check which means that's a legally binding agreement listen they jerk us around all the time okay they change the terms and conditions of all of the lending agreements and the credit card agreements all the time they basically send out a letter to you whether you get it or not they don't care sometimes they'll send you an email saying we were up updating our terms and conditions of of the agreement of your credit card okay well how many times have you actually gotten it how many times have it ended up in your spam folder in your email you never received it how many times have you not gotten the the mail at all because it got lost and yet they play these games jerking us around with these changes in their terms and conditions all the time so it's now time for you to turn the tables on these creditors and say "Okay well I'm going to use the law now in my favor." Okay and the cool thing about this is that was with with these restrictive endorsement letters you basically are going with the uniform commercial code the UCCC code which is listed here it's an actual federal code that you can use in your benefit to be able to get ahead of the credit game here so if they want to use terms and conditions all the time throw that in your face just mail you random letters that they don't even get signatures on by the way you're getting signatures from them or you're getting trackable you know mail from them but if they're trying to play the same games it's time for you to start turning the tables it's times for you to start empowering yourself and getting some of this crap off your credit so essentially what you want is this whole thing to fall off this whole account to disappear as if it never existed because if they do try to update it and do like settled as agreed for example that's still not going to look good on your credit it's basically going to look like you tried to take some kind of less than settlement and that's still not going to look good on your credit you always want to do a pay to delete meaning that you want to completely delete it as if it never existed because it's already a bad account might as well get rid of it all together right so that's what you're aiming to do is with this restrictive endorsement to essentially pay to delete the account so remember you can go to my website getdisdisputters.com down below in the description box and get the new restrictive endorsement letter and remember you don't want to use your personal information on there just scribble some signature at the bottom don't even say it's you don't say it's not you just basically make it look as form letterish as possible so then that way they don't know where it came from right because we don't want to reset the debt from day one and they could always assert that if they suggest to the court if they decide to take you to court hey this person started to make a payment even a dollar payment that restarts the debt from day one the clock ticking all over again we don't want to do that so that way that's why we we need to make sure that these don't really include any information about ourselves except for the debt so just basically make it seem like it's coming from a third party and basically make the whole letter kind of a third-party letter like you're talking about somebody else like you're writing the letter about somebody else that would be your brother and sister but it's actually really you so it's going to be a third person letter like you're talking about somebody else even though you're talking about yourself so you're going to basically say in reference to the account belonging to your name here as if you're talking about somebody else with account number blah blah blah and the amount of XYZ um you know we are or you could just say um it is being offered the amount of blah blah blah to fully satisfy this account and we will not we but um an amount of $50 will be sent to to you on X date which is 30 days from the date that they received the letter and once this amount is cashed then this amount will be satisfied in full and it will be removed immediately from the Experian Equifax and TransUnion credit reports okay so that's essentially what the letter says so again there's going to be letter number one have them have them trackable mail does not have to be certified make sure that from the the day that they receive it then that's when the 30-day time clock starts ticking 30 days goes by then you send them the second letter that's going to be certified remember second letter is certified first letter is trackable second letter certified with the letter with the check and um and then basically you know with the stuff that's on the back of the check that basically says once you endorse this then this is this this account specifically is paid in full and then you just wait until they cash it they might mail it back nine times out of ten they cash the checks because there's so many people that are you know checking the mail they get thousands of payments a day they're just endorsing endorsing endorsing in the bank in the bank in the bank endorsing endorsing endorsing in the bank in the bank in the bank they're not checking anything they're not reading anything they just don't care okay so that's how you can get one up over on the system all right so again everything's third party make sure that your checks either are a business account that do not have your personal data on there or you have a US Postal Service money order or you have a cashier's check ideally the cashier's check might even be through one of your family members accounts and not yours because you don't want your name on there but you do want to have your name and account number in the memo section of the cashier's check you just don't want the cashier's check to be specifically from you most of the time when you go to the bank and get a cashier's check most of the time it'll say um some kind of memo and it'll actually be from the bank itself so make sure that the bank references your name and the account number that you're satisfying and then don't forget to put that stuff on the back of the check or the money order you have to do it that way if you don't you screw this whole process up i will have everything that you're supposed to write really small and very legibly on the back of your checks and money orders and cashier checks in the description box down below so make sure you go to getdisputters.com no www park getdisputers.com there are thousands of people that use that website every single day so if you can't get there the first time around make sure that you hit it up again uh a couple hours later i'm in the process of putting up another link so then that way you guys have a secondary link in case you can't get to that one but basically that's where you get all the free downloadable letters including the restrictive endorsement letters that I'm talking about if you found that this content was helpful give me a nice thumbs up as well as subscribe to my channel also make any comments about any specific videos that you'd like me to work on and do for you moving forward in addition to that there's over 3,000 of you that are part of my school group so if you want to communicate with me directly you're going to have to do it through school.com/monic which is down below it's a free group now i'm going to start charging in the near future but if you lock it in for free now guess what it'll be free forever for life okay so you want to get into that school group because there's going to be over 3,000 people right now like-minded individuals just like you that you can network with but also you can get free book downloads free courses free credit building stuff all kinds of stuff plus I have a bunch of new stuff coming as well so you want to get into that school group as soon as possible and if you have any questions you could always direct message me through that group okay all right everybody this is Monica signing off and I will see you in the next video