Thursday, September 28, 2006

More false and misleading information from Creditwrench

Recently Creditwrench CEO Billie Bauer advised a poster on his message board that if they were unable to obtain their state statutes online, they could use a fee service such as Pacer.

There are no state statutes available on Pacer. Pacer stands for Public Access to Court Electronic Records. It is a data base that contains court documents only, not access to statutes.

If Creditwrench CEO Billie Bauer ever bothered to actually research court cases he would know this. But, rather than arm his "students" with factual information, he prefers to make up his own court cases, then pawn them off on his victims for a fee.

Further clear and convincing evidence that Creditwrench is a scam.

Tuesday, September 26, 2006

Who's side is Creditwrench on?

Obviously not the consumers. As you can see from this blog, he is providing financial support to expose debtors who are seeking help from their financial problems.

And, as he himself has previously admitted, he does not maintain personal credit information in accordance with FACTA.

What this means is that by becoming a Creditwrench student, you could end up having all of your personal financial information exposed to the entire world via an internet blog. Do you really want the world to know your personal business?

Sunday, September 24, 2006

Bad advice continues to dominate the Creditwrench board

A recent poster on the Creditwrench message board posed a question about FACTA. And, as one would expect, they were provided with a false and misleading answer.

Not surprising, considering CREDITWRENCH CEO Billie Bauer recently admitted he had no clue that FACTA was even a law.

A perfect example, and further evidence, that Creditwrench is nothing more than a scam to bilk innocent consumers out of their hard earned money.

Friday, September 22, 2006

CREDITWRENCH can't even help himself

Recently, CREDITWRENCH CEO Billie Bauer posted a tape recording of a collector calling him to collect on Creditwrench's defaulted Lowe's credit card. That's right, CREDITWRENCH CEO Billie Bauer doesn't have the resources to even make a $20.00 minimum credit card payment.

The recording indicates Creditwrench CEO Billie Bauer had received his 30 day verification rights in the mail a few days prior to this collection call being placed to his home.

In the conversation, Creditwrench CEO Billie Bauer indicated that he had 30 days to request verification. And, because the collector placed a collection call prior to the expiration of the 30 day verfication period, even though Creditwrench had not made a written request for verification, the call was therefore "overshadowing," and a violation of the FDCPA.

The truth is the FDCPA allows, and court's have consistantly ruled, it is not overshadowing for collection efforts to continue during the 30 day verification window if they have not received a written request for verification. A collector can even file a lawsuit during this verification period.

Just imagine being a Creditwrench "student." You would be led to believe that you have a cause to file a lawsuit against a collector for a FDCPA violation where none exists. Potentially putting you in harms way.

Creditwrench CEO Billie Bauer's claim that a collector attempting collection of a debt during the 30 day verification window, prior to receiving a written request for verification, is a FDCPA violation, is clear and convincing evidence that his advice is false and misleading.

Sunday, September 17, 2006

The E. Normis influence over Creditwrench

As indicated in my post below, Creditwrench CEO Billie Bauer provided dangerous information to a consumer. After reading my blog, CREDITWRENCH CEO Billie Bauer went back and updated the information.

Just goes to show the E. Normis influence this blog holds over Creditwrench by exposing the false and misleading information he attempts to peddle to unknowing consumers via his illegal credit repair scam.

Even old dogs can learn the truth.

Friday, September 15, 2006

Even more dangerous advice from CREDITWRENCH

Recently I had the opportunity to observe Creditwrench CEO Billie Bauer in a discussion with a consumer who was involved in a lawsuit over a defaulted debt.

Aside from his unprofessional behavior, he gave some very dangerous advice that, if followed, would result in a judgment against the consumer.

In this case, the consumer was sued and was in the process of answering the Plaintiff's requests for admissions. This process is critical, and can either be advantageous for the defense if handled correctly, or their worst nightmare.

Creditwrench CEO Billie Bauer's advice to this consumer would have resulted in it being their worst nightmare, and possibly end up with a judgment on their credit record. Just like Creditwrench CEO Billie Bauer did from following his own advice.

To quote directly from Creditwrench CEO Billie Bauer: "properly deny the truth." Such a course of action is not only wrong from a tactical standpoint, it can also lead to a criminal offense.

Then it was Creditwrench CEO Billie Bauer's advice that the questions should be answered in a manner that can only lead to disaster for the defendant. Creditwrench CEO Billie Bauer suggested using answers like "calls for a legal conclusion" "ambiguous" "defendant is without sufficient knowledge". Typical boilerplate answers taken off of internet message boards by Creditwrench Ceo Billie Bauer.

Here's the problem, and another prime example of why Creditwrench CEO Billie Bauer should be pursued by the Oklahoma Bar for the unlicensed practice of law.

Even a brand new attorney, fresh out of law school, would know what to do upon receiving a request for admissions answered in such a fashion.

There is no dispute of material fact contained in such admissions. Therefore, no triable issues exist and the Plaintiff would immediately move for summary judgment on that basis. Thus, cutting off any opportunity for the defendant to conduct discovery, during which they could possibly obtain critical evidence with which to attack the Plaintiff's proof of claim.

Fortunately, in this case, I was in a position to intervene and correct the dangerous situation CREDITWRENCH CEO Billie Bauer was potentially exposing the consumer to.

Monday, September 11, 2006

Dangerous advice from CREDITWRENCH

Recently I became aware of advice Creditwrench CEO Billie Bauer provided to a consumer that has an outstanding judgment. This consumer also owns real property.

The advice from CREDITWRENCH CEO Billie Bauer was that this consumer should make themself "judgment proof". This is a tactic promoted on numerous consumer message boards from which CREDITWRENCH CEO Billie Bauer obtains all of his information.

The advice included "moving bank accounts" and "hiding their car". Not sound advice because, under certain circumstances, these actions are illegal and can lead to criminal charges begin brought against the consumer.

Because this consumer owns real property, and a judgment has already been obtained, they could face the real possibility of losing their property. All the judgment creditor needs to do is obtain an abstract of judgment and they have a lien on the consumers real property.

The correct course of action in this case would be to consult an attorney as I readily advised the consumer.

CREDITWRENCH CEO Billie Bauer's advice is not only false and misleading, it is now becoming dangerous as it could cause a person to commit a criminal offense.

Creditwrench unable to support his position........again

It's now been 4 days and Creditwrench CEO Billie Bauer has been unable to support his opposing view that collection agencies collecting unpaid taxes are subject to the FDCPA. Not surprising though, Creditwrench CEO Billie Bauer is never able to cite an authority for any position he takes.

Creditwrench CEO Billie Bauer continually provides false and misleading information because he lacks the necessary knowledge of consumer protection laws, and does not bother to read case precedent. As pointed out previously on this blog, did not even know FACTA was a consumer protection law.

Read anything posted by Creditwrench CEO Billie Bauer anywhere on the internet, send me an email, and I will be happy to cite the necessary authority to prove that what Creditwrench CEO Billie Bauer has posted is false and misleading.

Thursday, September 07, 2006

Creditwrench lacks knowledge of the FDCPA

Today in a discussion with CREDITWRENCH CEO Billie Bauer claimed collection agencies collecting unpaid taxes are subject to the FDCPA.

As always, I quickly corrected Creditwrench CEO Billie Bauer on his lack of understanding of how the FDCPA does not apply to collection agencies collecting unpaid taxes.

The FDCPA only applies to debts incurred for personal, family or household purposes. This definition is contained within the FDCPA itself. Additionally, courts have consistantly upheld its plain definition.


There is ample case law at all levels, state, federal, and appellate that all consistantly hold that taxes do not qualify as a debt under the FDCPA.


Staub v. Harris, 626 F.2d 275 (3d Cir. 1980), the Third Circuit held that a past- due tax obligation is not a "debt" because it generally is used for communal rather than "personal, family, or household purposes."

The Staub court noted that taxes "'are public burdens imposed generally upon the inhabitants of the whole state, or upon some civil division thereof, for governmental purposes, without reference to peculiar benefits to particular individuals or property.'" Staub, 626 F.2d at 278 (quoting Black's Law Dictionary 1307 (5th ed. 1979)).

The court reasoned that taxes are used for more general purposes than the statute requires since they "provide funds for such nonpersonal purposes as prisons, roads, defense, courts and other governmental services" and thus the taxpayer receives only a general public benefit from the taxing authority. Id. See also Federal Trade Commission--Statements of General Policy or Interpretation Staff Commentary on the Fair Debt Collection Practices Act, 53 Fed. Reg. 50,097, 50,102 (1988) (unpaid taxes not "debts" under the FDCPA).


Creditwrench CEO Billie Bauer's claim that collection agencies collecting unpaid taxes are subject to the FDCPA is false and misleading.

Wednesday, September 06, 2006

Get in trouble with the IRS following Creditwrench advice

In a recent discussion I had with CREDITWRENCH CEO Billie Bauer, Mr. Bauer made the following comment:

"one of my goals for this and the upcoming years is to inform the greatest number of consumers possible about the(tax)law and how to inform the IRS when creditors or collectors violate the law by failure to comply".

What that means is anyone foolish enough to follow the information provided by Creditwrench CEO Billie Bauer will shortly find themselves facing penalties, interest, bank levies, garnishment, and possible jail time, courtesy of CREDITWRENCH CEO Billie Bauer.

A case in point.

Today, in regards to a creditor issuing the required 1099-c on a discharged debt, CREDITWRENCH CEO Billie Bauer stated:

"if no 1099 is issued by the creditor then no tax is collectable by the IRS".

The truth is, and the Internal Revenue Code makes very clear, you are responsible to report all income from any source, including the discharge of indebtedness, to the IRS irrespective of whether you receive the necessary forms.

Here is how the United States Tax Court ruled on this exact issue just this past March.

Petitioner claims he did not receive a Form 1099-C from American Express discharging the debt. “The moment it becomes clear that a debt will never have to be paid, such debt must be viewed as having been discharged.” Cozzi v. Commissioner, 88 T.C. 435, 445 (1987). The nonreceipt of a Form 1099 does not convert a taxable item to a nontaxable item. Vaughn v. Commissioner, T.C. Memo. 1992-317, affd. without published opinion 15 F.3d 1095 (9th Cir. 1993).

The Court concludes that petitioner realized discharge of indebtedness income in the amount determined in the notice of deficiency.


Do you really want to be in trouble with the IRS? Most people wouldn't. But, that is exactly where you will find yourself if you listen to the false and misleading information provided by Creditwrench CEO Billie Bauer.

Tuesday, September 05, 2006

CREDITWRENCH can't help you with FDCPA violations

As pointed out in my earlier posts, CREDITWRENCH CEO Billie Bauer will make many false statements in order to enroll a "student". One of those statements is:

"Creditwrench teaches people how to deal with debt collectors that abuse
them, violate the FDCPA.... "

Yesterday, CREDITWRENCH CEO Billie Bauer himself proved he lacks adequate knowledge of the FDCPA to even recognize when a debt collector violates the act.

When asked to support his statements about how a creditor enforces an attorney fee provision in a contract, he includes in his response:

"Make your customer responsible for paying all of the cost of collection......The attorney would then be paid a percentage of the debt (as determined by the court) in addition to recovery of 100% of the balance of the debt...The attorney then keeps that amount as a court awarded attorney’s fee."

Since the above was in response to my query as to how a creditor recovers their attorney fee from the debtor, and since he has continually failed to offer any other explanation, CREDITWRENCH CEO Billie Bauer's response indicates it is added to the debt and recovered in court.

Though it is common practice for debt collectors, including attorney debt collectors, to add a percentage fee to a debt as a "reasonable cost" such a practice violates the FDCPA.

In Stolicker v. Muller, Muller, Richmond, Harms, Myers, and Sgroi, P.C., a recent Federal Court ruling, Muller had a 25% contingency fee arrangement for collections on behalf of its client credit card company. The credit card agreement stated that the borrower would pay all collection costs and "reasonable" attorneys fees upon default. The law firm filed an affidavit in its collection action asserting that its 25% contingency fee was a "sum certain" owed by the borrower. The Court ruled that the filing of the affidavit violated the Fair Debt Collection Practices Act (FDCPA) because "reasonable" attorneys fees must be determined by the court. The 25% contingency fee was a fee owed by the credit card company to its attorneys, but not necessarily the fee owed by the borrower to the lender. The court stated:

Claiming that a "reasonable attorney fee" is a "sum certain," as Muller did in this case, is a false representation. Although the Muller law firm fails to appreciate the falsity of its statement, it is clear to the Court that a "reasonable attorney fee" cannot be a "sum certain." A reasonable attorney fee requires a judicial evaluation of the evidence regarding the fee. See e.g. Zeeland Farm Services, Inc., 219 Mich. App. at 195-96, 555 N.W.2d at 736. A sum certain, is just that, a liquidated amount that requires nothing further. Cases discussing whether a reasonable attorney fee is a sum certain in the context of the federal rules of civil procedure are instructive and establish that a "reasonable attorney fee" is not a "sum certain." See Flynn v. Mastro Masonry Contractors, 237 F. Supp.2d 66, 70 (D. D.C. 2002) ("The amount of attorney's fees, however, is not considered a sum certain as the 'reasonableness of the fees requested by the [plaintiff] is a "judgment call" which only the [c]ourt can make.'") (quoting Combs, 105 F.R.D. at 475); Chemtall, Inc., 992 F. Supp. at 1412 ("a plaintiff 'cannot satisfy the certainty amount simply by requesting a specific amount. He must also establish that the amount is reasonable under the circumstances.' Furthermore, items like 'reasonable attorney's fees' are simply not a 'sum certain.'") (citation omitted) (quoting 10 FEDERAL PRAC. & PROC. CIVIL 2d § 2688 at 415; § 2684 at 418)); 10 JAMES WM. MOORE ET AL., MOORE’S FEDERAL PRACTICE § 55.20[1][b] (specifying that an unliquidated claim for attorney fees is not a "sum certain." ) (citing Davis v. Nat’l Mortgage Corp., 320 F.2d 90, 91-92 (2d Cir. 1963)). Harms' statement in his affidavit is false because a "reasonable attorney fee" cannot be a "sum certain." Therefore, as a matter of law, the Muller law firm's false affidavit violated 1692e.


It is abundantly clear from CREDITWRENCH CEO Billie Bauer's response that he isn't capable of recognizing a FDCPA violation.

He is quite capable of making false and misleading statements, which is what you will get plenty of if you become a "student".

CREDITWRENCH unable to support his claims

Thinking of becoming a Creditwrench student? Consider this:

CREDITWRENCH CEO Billie Bauer makes all kinds of claims, but has never been able to support a single one.

Recently he claimed that a plaintiff's attorney, attempting to collect reasonable attorney fees for their client that are allowed by contract and statute, commits fraud upon the court. And, that pro se litigants have prevailed in cases to have the attorney sanctioned and disbarred. He also claimed he could provide case cites.

When pressed to do so, CREDITWRENCH CEO Billie Bauer could not produce a single case to support his erroneous claim. His claim was obviously nothing more than false and misleading.

CREDITWRENCH CEO Billie Bauer will similarly make false and misleading statements to try and enroll you as a student.

Sunday, September 03, 2006

Creditwrench caught off guard.......again!

This month, collection agencies have begun collecting delinquent taxes for the IRS. I have posted the relative information on PCMholdings.com and Collectionindustry.com.

To no one's suprise, CREDITWRENCH CEO Billie Bauer has failed to provide his readers with any insight regarding the matter.

In fact, he was allowed an opportunity today to reply to a direct question regarding the preparedness of his "students" in handling this situation.

How did he respond? "No comment".

Do you have income taxes that may be due? If so, CREDITWRENCH CEO Billie Bauer is obviously unable to assist you in handling collection agencies that might be calling you.

Just as he admitted he is unable to assist you with FACTA, FDCPA, and any other consumer protection statute.

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