SECTION 6.1: WHAT ABOUT “FORECLOSURES”?

It is possible that, after a while of trying with these people, and if still unsuccessful to get your money back, that you will be threatened with, or in fact be placed in, a situation the Club refers to as Foreclosure.

This sounds intimidating, of course. You may fear consequences, such as an impact to your credit score, or having collection companies call you and pressure you for the Club money.

The truth is this is a process which serves two goals -- one, intimidating you into paying them more money and remaining in the Club. Second, should you not comply, the Club proceeds to deactivate your account and close your case. You are, effectively, over with the Club at that point.

In our research, we have NOT seen any evidence of any given members having their debt with the Club reported to any collection agency. We HAVE seen them threaten to do so, and even saw emails sent to members owing past due account where they mentioned by NAME one particular collection agency in this or that city or state/province.

The truth is these collection companies had NO IDEA about the Club, did no business with them, and never had in the past either.

The picture this paints for us is that the Club actually DOES NOT care about following on collections once you fall on their Foreclosure process, and they are content in simply closing the account and forgetting about you.

In other words, to stop paying these people means NO RISK of impacting your credit score, BUT it only works if you are willing to walk away with NO money.

If you DO want to keep fighting it, you need to stay in touch with them, even if just to let them know you are still fighting for your money.