Poor Credit - Credit Cards

Robert Bobb – Committing Crimes Against Detroit

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It is truly bewildering why people from Washington DC think they can just fly into Detroit and start giving orders like they run the place. It doesn’t matter if some bureaucrat (or board of them) tell the Federal government that the Detroit schools want help. All that matters is what the citiziens of the city want, since it is their kids that have to deal with the consequences.

A Long Line of Incompetents.

In all my time watching the Detroit Board of Education, it has been rare that they have shown signs of competence, insight, or motivation toward a goal higher than eating a good steak, driving a fancy car, or living a luxury lifestyle. Rather than concern themselves with their responsibilities (e.g. their jobs), they are primarily concerned with their own comfort.

It is the desire for the so-called finer things in life that have led to decades of declining performance, enrollment, and standards. These are crimes of fraud, misrepresentation, and neglect against the parents and children of Detroit. The entirety of the Detroit school system needs to be held accountable. Yet, no one ever is. Of course, the reason why is not very difficult to discover.

The Invasion of Detroit.

All who seek to enrich themselves at the expense of the city of Detroit are intruders, interlopers, and invaders. They seek only to reduce the city’s resources for their personal gain and to leave once they have accumulated what they want. It doesn’t matter if it’s a teacher, an administrator, a school contractor, the superintendent, or the school board. All levels have contributed to the failure.

Robert Bobb is the latest example of this.

He exists solely for the purpose of carrying out an agenda that is contrary to the wishes of the people of the city of Detroit. In return, he profits himself with an outrageous salary, pension, and outside income. The media plays their part in undermining the city by supporting this clown as some sort of “savior” of the schools.

Of course, no one in Detroit knows or knew anything about this Robert Bobb. Yet, he is now the “savior” of the schools and is getting the job done? He is succeeding where Detroiters have failed after decades of trying? It appears someone is trying to build a fantasy that cannot stand the test of real facts.

Why Robert Bobb?

Robert Bobb takes orders. He is visible and gives the illusion he is about “change” and “hope” and therefore represents a brighter future. Naturally, one person cannot change what has been happening for years, but the media and the government do their part to build unfounded belief in their puppet.

Since he is not from Detroit, he feels no responsiblity for getting anything done. He has no ties, no interest, nor concern for the community. He sees the children simply as a means to an end. Namely, the children allow him to lead a comfortable lifestyle and the city provides him a platform for his next great “accomplishment” in the next city that doesn’t want him.

It is a great scam that the government has been playing on the people of Detroit for a long time.

Is There Any Hope with Robert Bobb?

Well, it should be clear that Robert Bobb will never deliver results for the city. He is too ignorant, too weak, too clueless to have any idea how the city works and why. It is the reason why he was selected, which is why the Detroit Pubilc Schools will continue to get worse and continue to underperform.

As long as the children of Detroit are being miseducated, misled, and mistaught by the likes of Robert Bobb and his “people” in the admihistration, he will be rewarded by the powers that put him in place. This is bad news for the schools and a crime against Detroit.

Detroit doesn’t need anymore outsiders with their “solutions” and “answers” to the problems plaguing the city. It is time for the community to rely on itself. It is the only way forward to progress and success.

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Handling Debt – Pt. 2

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Mortgages and Auto Financing.

Debts can be secured or unsecured. Secured debts are tied to an asset, like a car for a car loan, or a house for a mortgage. If you stop payments, lenders can repossess the car or foreclose on the house. Unsecured debts are not tied to an asset. They include credit card debt, medical care bills, signature loans, and debts for services.

Cars.

Most auto financing contracts let a creditor repossess the car when a default occurs. No notice is required. If a car is repossessed, the balance due on the loan is owed, with towing and storage costs. If these aren’t paid, the creditor may sell the car. If a default seems likely, it may be better to sell the car and pay the debt. You avoid the costs of repossession and a negative credit report entry.

Homes.

If your mortgage is falling behind, immediately contact your lender to avoid foreclosure. Typically, lenders are willing to work with you when in good faith and they feel the situation is temporary.

Some lenders will reduce or suspend payments for a short time. Once regular payments resume, you may pay additional costs toward the past due balance. Some lenders agree to change the mortgage terms by extending repayment periods to reduce monthly debt. Find out if additional fees are assessed for these changes, and determine how much they total in the long term.

If an acceptable plan is not available, contact a housing counseling agency. Some agencies restrict counseling services to those with FHA mortgages. However, others offer free help to any homeowner with trouble making mortgage payments. Call your local office of the Department of Housing and Urban Development. Or, contact the housing authority for your state, city, or county to get help finding a reputable housing counseling agency near you.

Debt Consolidation.

Sometimes, to lower your cost of credit, you can consolidate debt with a second mortgage or home equity line of credit. Remember, these loans require your home as collateral. If you miss payments — or they are late — you could lose your home.

Consolidation loan costs can add up. Besides interest on the loans, you may have to pay “points” on the loan. Each point is one percent of the amount you borrow. Yet, these loans offer certain tax advantages unavailable with other kinds of credit.

Bankruptcy.

Generally, personal bankruptcy is considered the debt management option of last resort. The results are far-reaching and long-lasting. A bankruptcy remains on your credit report for 10 years. This can make it hard to get credit, get life insurance, buy a home, or even get a job.

It is a legal procedure offering a fresh start for those who can’t meet their debt obligations. People who follow bankruptcy rules get a discharge. This is a court order saying you don’t have to repay certain debts.

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Handling Debt

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Be Responsible With Debt.

Are paying bills getting harder? Getting notices from creditors? Are accounts going to debt collectors? Is losing your home or car a constant worry?

Don’t feel alone. Many face financial crises at some point in their lives. Whether it is caused by personal or family illness, job loss, or simple overspending, it can seem overwhelming. Often, it can be overcome. Your financial situation doesn’t have to go from bad to worse.

If you are in financial hot water, consider…

  • realistic budgeting,
  • credit counseling from a reputable organization,
  • debt consolidation, or
  • bankruptcy.

Which works best for you? It depends on your debt level, your discipline, and your future prospects.

Do-It-Yourself.

You need to take control of your finances. First, do a realistic assessment of your income and your expenses. List income from all your sources. Next, list your “fixed” expenses. Fixed expenses are the same each month, like your mortgage payment or rent, car payment, and child care. List expenses that vary. Entertainment, recreation, and clothing are expenses that vary month to month.

Write down all your expenses. Include those that seem insignificant. This helps track your spending patterns, identify your necessary expenses, and prioritize the rest. Your goal is to have enough for the basics: housing, food, health care, education, and insurance.

The public library, bookstores, and of course, the web have information about budget and money management techniques. Software programs can help you develop and maintain a budget, balance your checkbook, create saving plans, and pay down your debt.

Contacting Creditors.

Immediately contact creditors when you have trouble making ends meet. Explain your situation and try to work out a payment plan to reduce your payments to a manageable level. Don’t wait for accounts to reach a debt collector. At that point, creditors have given up on you.

Dealing with Debt Collectors.

The Fair Debt Collection Practices Act dictates how and when debt collectors contact you. Debt collectors cannot call before 8 a.m. or after 9 p.m. They cannot call you at work if the collector knows your employer doesn’t allow calls. Collectors may not harass, lie, or use unfair practices to collect a debt. They must honor a written request from you to stop further contact.

Credit Counselors.

If you cannot create a working budget and stick to it, cannot get a repayment plan with creditors, or cannot track mounting bills, consider a credit counseling organization. Many credit counseling organizations are nonprofit. They help you solve your financial problems.

Just because an organization says “nonprofit” is no guarantee services are free, affordable, or even legitimate. For some credit counseling organizations, they charge high and/or hidden fees, or pressure you for large “voluntary” contributions which cause more debt.

Most credit counselors use local offices, the web, or telephone to offer services. If possible, get in-person counseling. Many universities, housing authorities, credit unions, military bases, and branches of the U.S. Cooperative Extension Service offer non-profit credit counseling programs. Your friends and family, financial institution, or local consumer protection agency may provide information and referrals.

Credit counseling organizations, that are reputable, can…

  • advise you on money and debt management,
  • help you develop a budget, and
  • offer free educational materials and workshops.

They have certified and trained counselors in consumer credit, money and debt management, and budgeting. Counselors cover your entire financial situation with you. They help develop a personal plan to solve your financial problems. The first counseling session lasts about an hour, with an offer for additional sessions.

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Improve Your Credit Report

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The Fair Credit Reporting Act says…

  • the credit reporting agency, and
  • the information provider (person, company, or organization providing information about you to a credit reporting agency)

must correct inaccurate or incomplete information on your report. What if you see inaccurate or incomplete information on your credit report? Under the FCRA, you have the right to contact the credit reporting agency and the information provider and tell them. They have the obligation to fix any errors you identify.

Correct Your Credit Report.

Send a letter to the credit reporting agency. In it, describe what information you believe is inaccurate. Send copies (NOT originals) of documents to support your claims. Provide your complete name and address.

Write your letter to clearly identify each disputed item on your credit report. State your facts. Explain why you are disputing the information. Request that they delete or correct the information.

You can enclose a copy of your credit report with the disputed items circled. Send your letter as certified mail with return receipt requested. This lets you document what the credit reporting agency received. Keep copies of all dispute letters and enclosures.

Credit Report Investigation.

Credit reporting agencies must investigate disputed items. It usually takes 30 days, unless the dispute is considered frivolous. They must forward your relevant data, about the inaccuracy, to the organization which provided the information.

The information provider is notified of a dispute from the credit reporting agency. The information provider then investigates, does a review, and reports results to the credit reporting agency. For disputed information the information provider agrees is inaccurate, it notifies all 3 national credit reporting agencies (CRAs). This lets the CRAs correct the information in your credit file.

Investigation Completion.

After the investigation, the credit reporting agency provides the written results. You get a free copy of your credit report if the dispute causes a change. (This free report is not counted as a free report under the FACT Act.)

For changed or deleted items, the credit reporting agency cannot put the disputed information back in your credit file. Only if the information provider verifies the information is accurate and complete, can this occur. The credit reporting agency must send you written notice which has the name, address, and phone number of the information provider.

Updated Notices.

If you submit a request, the credit reporting agency must send notices of corrections to all who received your report in the past 6 months. A correct copy of your report can be sent to anyone that received a copy the past 2 years for employment purposes.

Unresolved Disputes.

Sometimes, the investigation leaves your dispute unresolved with the credit reporting agency. You can ask that a dispute statement be included in your credit file and future reports. You can ask the credit reporting agency to provide your statement to any who received a copy of your credit report in the recent past. You should expect to pay for this service.

Disputes to Creditors.

Write the creditor or information provider that you dispute an item. Include copies (NOT the originals) of documents to support your position. Many providers have an address for disputes.

A provider may have reported a disputed item to a credit reporting agency. It must include your dispute as a notice. If you are correct because the information is inaccurate, the information provider cannot report it again.

Sample Dispute Letter.

Date
Your Name
Your Address
Your City, State, Zip Code

Complaint Department
Name of Company
Address
City, State, Zip Code

Dear Sir or Madam:
I am writing to dispute the information in my credit file. These disputed items are circled on the attached copy of the credit report I received.

This item (identify item(s) disputed by source name, such as creditors or tax court, and identify the type of item, such as credit account, judgment, etc.) is (inaccurate or incomplete) because (describe the inaccuracy or incompletion and why). I request the item be deleted (or request another specific change) to correct the information.

Attached are copies of (if applicable, use this sentence and describe any documentation, like payment records, court documents) supporting my position. I hope you investigate this (these) matter(s) and (delete or correct) the disputed item(s).

Sincerely,
Your name

Enclosures: (List what you are enclosing)

Accurate AND Negative Information.

What happens if you have negative information on your credit report that is accurate? Only time assures its removal. A credit reporting agency can report most accurate negative information for 7 years. For bankruptcy information, it is 10 years.

An unpaid judgment against you can be reported for 7 years or until the statute of limitations ends, whichever is longer. For criminal convictions, there is no time limit. The method for calculating the 7-year reporting period runs from the date the event occured.

Adding Accounts to A Credit File.

Your credit file may only show SOME of your credit accounts. Most national chain stores and bank credit cards are included in your credit file, but not all. For travel, entertainment, gasoline cards, local retailers, and credit unions, they usually aren’t included.

Denied Credit.

An “insufficient credit file” or “no credit file” has caused some to be denied credit. Yet, they have accounts with creditors. This is because they don’t appear in your credit file. Ask the credit reporting agencies to add this information to future reports.

Credit reporting agencies are not required to add creditors to your credit report. However, many will add verifiable accounts for a fee. If these creditors do not generally make reports to the credit reporting agency, the added items will not be updated in your credit file.

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Dealing with Collection Agencies

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When you are fixing your credit report and removing wrong information, you then have to address negative credit items. This requires sending a dispute letter to the credit reporting agencies (Equifax, Experian, TransUnion).

While your first round of dispute letters are processing at the credit reporting agencies you’ll want to do the following. This includes if you receive notice from a collection agency that money is due, once you’ve sent the dispute letters.

The advice that follows is ONLY for dealing with collection agencies!

Collection Agency Warning.

DO NOT accept anything the collection agency tells you over the phone! Do NOT call them to find out if they are legal/bonded/licensed! In fact, DO NOT CALL A COLLECTION AGENCY FOR ANY REASON! You need to learn yourself whether they are able to operate legally in your state or the state they are located.

State Law.

When dealing with collection agencies, you may be dealing with the laws of two states, if they are not located in your home state. Find out if your state AND the state of the collection agency require a license, a bond, none, or both.

Licenses.

Check to see if the collection agency has a valid license. Most states have online license search. Search for the state’s attorney general website and look for licensing. To find an attorney general’s website, search with the keywords “state” and attorney general. For example, for Ohio you would do a Ohio attorney general search.

If no license is found, the collection agency probably cannot legally pursue you for collection. PRINT THE PAGE SHOWING NO LICENSE!

Bonds.

Find out who bonds for your state. Contact them (it’s the Secretary of State for Texas) and find out if the bond was properly filed by the collection agency. Often, you can email them to get an answer.

If no bond has been filed, get a cerification of NO RECORD. For a small fee, they send you a certified letter that the collection agency has no bond on file. This likely makes it illegal for them to pursue collections against you.

Both.

If both a bond and a license are required, then do everything for a license and a bond. Send a letter if necessary, with ALL violations!

None.

If the state requires no licensing nor a bond, search for the attorney general for your state and the state where the collection agency is. Learn how to file a consumer complaint. File it with the state.

Remember to do these steps for your state and the state where the collection agency is located.

Getting Results.

For a collection agency that is licensed properly, find out if a regulatory or supervisory board exists for your state and the state of the collection agency. Go to the Attorney General’s website and file a complaint. List all the violations of that collection agency.

The regulatory or supervisory board investigates collection agency complaints. They have the power to punish the collection agency. Often, you get a deletion from your credit report. That will end their collection activities against you.

Be warned. If you file a lawsuit, these boards may not assist you further. Be aware it takes up to 45 days for a response!

If all goes well, you will see the collection agency item removed from your credit report.

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Fee-Generating Credit Cards

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When you have poor or no credit, it is extremely expensive to live in the United States. An example of this is the fee harvester credit card.

Using Your Credit History Against You.

Fee-harvester credit cards look like credit cards. They are designed for those with poor or zero credit history. They have little to do with issuing credit or building a credit history.

Poor credit credit cards are “subprime” cards. Their only purpose is to hit you with fees, excessive interest rates, and hard-to-determine balances. They look like an amazing deal or just what you needed. But, these poor credit credit cards will eat up most of your monthly payments in charges and fees. It effectively wipes out what little credit limit you have, making them virtually useless.

Some Examples.

A typical poor credit credit card advertises a credit limit of $250. However, that is reduced by a…

  • $45 membership fee,
  • $109 acceptance fee, and
  • $6 monthly participation fee

This leaves only $90 of actual credit! If that $90 of credit is exceeded, then a $29 overlimit fee is charged!

One sailor on leave charged $80 on one of these poor credit credit cards. Supposedly, there was a $250 credit limit. Since her net available credit was only $79 after all the upfront fees, she incurred huge extra charges. Now, she is paying more than $300 for $80 in charges.

How It Usually Works.

Typically, with average credit, a credit card company earns a profit from interest income on its credit card account. Generally, poor credit credit cards do not. Instead, they make a profit from front-end fees you pay just to get the card. This is because many cardholders can’t make their payment on time or at all. Now, when the credit card company writes off the balance, it is mostly unpaid fees to itself!

One company, CompuCredit charged off over $700 million. Yet, it was able to collect enough fees and interest for $107 million in profit.

Be Careful With Poor Credit Credit Cards.

These companies exist because they can avoid state interest rate ceilings and consumer protection laws.

Basically, if you have no or poor credit, avoid these credit cards. If you need credit, get a debit card or a secured or unsecured loan from a bank. Check for a reasonable interest rate and low or no fees. Avoid telemarketers and bulk mailings with too-good-to-be-true credit cards.

Be patient. Poor credit takes time to repair and a new credit history takes time to build.

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Poor Credit – Credit Card Scams

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If you have poor credit or no credit history at all, life can be very challenging. Too often credit is required to purchase things you need in life. This includes a home, a car, groceries, education, and even medical care. In today’s society, it is not uncommon for some to feel excluded without it!

Desperate for Credit.

For many, a credit card is seen as their opportunity to enter the middle class. While, it does allow you to buy many things, it comes with obligations. You have to pay back everything you borrow with it.

Very often, repayment is the last thing on the minds of many borrowers. They just want to spend, go on shopping sprees, or indulge themselves. If you are desperate for credit, you have to ask yourself, “What do I plan to do with the credit once I get it?”

Without really understanding what you “NEED” and not what you “WANT” with credit, it is very easy to find yourself over your head. For the young and the desperate, this can lead to financial disaster. It also makes you vulnerable to very unfavorable credit terms.

Poor Credit Credit Cards.

The no credit or poor credit credit cards business is a cutthroat one. It is the equivalent of going to a pawn shop for a loan rather than a bank. Why?

Both the pawn shop and the poor credit credit card company require collateral. Both charge you exceedingly high interest rates. Both offer relatively little credit for the collateral you give them. Both cater to the desperate and to those rejected by the larger banks. Both offer you little opportunity to build a credit history.

Understand, when you use a poor credit credit card, you are not really building a credit history. Whether you are a good customer or not, there is a real chance you will hurt your ability to get credit in the future.

What Is A Poor Credit Credit Card?

Simply, there is no such thing as a no credit or poor credit credit card. By definition, a credit card is based on the lender’s reasonable expectation of the borrower’s ability to pay. If you have no credit or poor credit, there is no reasonable expectation of payment.

A no credit or poor credit credit card is a secured credit card. But, a secured credit card doesn’t really exist. If it’s secured, it’s not credit. Rather, a no credit or poor credit credit card is a DEBIT CARD!

Paying High Interest On A Checking Account.

Think about what it means when you are offered a credit card, that is really a debit card. You are being charged higher interest rates than a credit card. You get higher fees than a credit card. In exchange, they use your security and lend it back to you.

While there is a convenience to having a debit card, it is not worth paying the higher interest rates you see on “secured credit cards” in most cases. Too often, people don’t realize they are being charged interest for essentially having a checking account.

Sometimes, the poor credit credit card gives you a balance somewhat above your security. For instance, you may deposit $300. You are “given” an additional $200 in credit for a total of $500 available. While, that $200 may seem like a good deal if times are tight, you are getting a worse deal than if you got a debit card with overdraft protection.

Preying on the Consumer.

Unless you really read and understand the terms for most “secured” credit cards, it is best to just avoid them. They may have sweeteners, such as no interest for 6 months, 0 balance transfers, cash back, gifts or prizes, but understand these do not change a bad deal.

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Poor Credit – Credit Cards

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Before applying for a credit card, you should know your rights, options, and how to get your credit score. Too many are unaware of 1, 2, if not all 3, and they pay for it with higer interest rates, denied credit, or unfair billing and collection treatment.

A World Of Debt.

There are many banks, finance companies, and lenders who have no interest in giving you the best deal. They see a borrower as an opportunity to exploit you for profit. The law, contracts, and terms can be so confusing and overwhelming, that many just sign on the dotted line when given a chance to borrow or get a credit card. Do not be one of those people.

In today’s world, everyone needs credit. Everyone is in debt. Whether you buy a house, a car, a TV, a pair of shoes, a dinner at a restaurant, or groceries for the week, someone is ready to make a loan for it. This easy access to credit comes with a cost, both hidden and subtle. To make sure you are not trapped in a web of debt, you need to know a few things, first.

Credit Cards vs. Debit Cards.

Credit and debit cards are two very different things. You must be clear on the distinction because many times, a card presented as a credit card is actually a debit card. It is the difference between building credit and just being de-frauded.

A credit card is unsecured while a debit card is secured. What does this mean?

Credit Card.

A credit card is not backed by anything other than your promise to pay. That means the bank, finance company, lender will give you a loan, indefinitely, based on their opinion of whether you have the means to service the debt. It is an offer of credit, or debt, to you, to use as you see fit and available at any time.

Credit cards can raise or lower limits at their discretion. You are not entitled to the credit. So, if they lower your available balance, you have little recourse. However, they may raise it, and you can borrow more than you could before.

Credit card activity goes on your credit report. As you repay loans, carry balances, service the debt, it all is reported to the 3 credit reporting agencies.

Debit cards.

Debit cards are a drastically limited form of credit. While a credit card is not backed by anything other than your promise to pay, a debit card is backed by a checking account. Many credit cards and prepaid cards present themselves as credit cards. In the sense of your credit history, credit report, and ability to borrow, THEY ARE NOT!

When you get a debit card, the purpose is to access your checking account. It is a convenient way to use credit card payment systems, without writing a check. However, too often, unscrupulous, deceptive companies attempt to present what is essentially a debit card as being a credit card. Don’t fall for this trick!

Debit card activity is not as relevant for improving your credit history (and thus credit rating) as a credit card. However, it can certainly be used against you. If you are hit with an overdraft fee, that is considered a negative credit event. Yet, if you never overdraft, you are not given consideration as a good credit risk.

While it may be tempting for those with poor/bad or no credit to get a prepaid card or debit card to build a credit history, it will more than likely result in greater financial hardship later.

Options If You Have No or Poor Credit.

A credit card is a good way to build a credit history. If you do not have that option, becuase of no credit history or a bad one, your best bet is to get a co-signer for a loan. Another good option is to get a secured loan with your local bank.

DO NOT USE PREPAID CARDS TO BUILD CREDIT!

AVOID THESE CREDIT CARDS!

This list is by no means exhaustive. But, it should give you an idea of how easy it is to find yourself at financial risk.

Some cards to avoid are…

First PREMIER Bank Gold MasterCard

Orchard Bank (All Cards – Platinum, Gold, Silver, Secured)

RUSH Card

Centennial Visa or MasterCard from First PREMIER Bank

Imagine Gold MasterCard

First PREMIER Platinum Card

New Millennium Bank Secured Platinum Visa or MasterCard

Continental Finance MasterCard

Stay Alert!

Whether your card is a good deal now or you have avoided the obvious bad ones, it doesn’t mean you can rest easy. You are a borrower! You owe someone else. That means you are at the mercy of hard-to-read contracts, endless terms, and confusing rates, fees, and charges.

Credit is a very sserious thing. The lender doesn’t take their loans lightly. Likewise, do not take going into debt as a trivial thing. It will affect many parts of your life, so be sure you have the best deal, not just now, but as long as you are in debt.

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