Legally Walk Away From 100% Of Your Credit Card Debt

The United States Supreme Court has ruled time and again that banking institutions do not have the authority to lend you credit. Numerous Consumer Protection laws, such as Truth in Lending, Fair Debt Collections, and Fair Credit Reporting, and Commercial and Contract Law define the way banks and lending institutions can legally function.

Federal and state banking laws allow banks to lend money – not credit. They aren′t allowed by law to create credit or money out of thin air. They can′t lend you something they don′t have, and they can′t charge you interest on something that doesn′t exist!

A true Debt Relief process is founded on numerous Consumer Protection laws, as well as common law rulings of the courts, including the United States Supreme Court. They have ruled time and again that banks do not have the authority to lend you their credit. Federal and state laws allow banks to lend money – not credit. They can′t lend you something they don′t have, and they can′t charge you interest on something that doesn′t exist! Are YOU legally allowed to create money out of thin air? NO! Neither can the banks, but they do. . .

Here’s how the process works:

You will send a series of letters to the credit card company, banking institution, and/or collections agencies. You will ask them to provide proof in many areas, and tell them your intentions if they cannot provide proof, such as:

1. Do they have the authority to lend you their credit?

2. Do they have the authority to create money or credit?

3. If they don’t have the authority, they concealed this fact. This is fraud.

4. You believe you have been tricked into participating in their fraud.

5. You do not wish to be party to their fraud and must stop immediately.

6. Since they didn′t disclose to you the fraud, and since they knew about it when you signed the credit application, the contract is illegal.

7. A contract that is illegal at the time of signing is null and void.

8. You inform them that no amount can be owed on a void contract.

9. You request a $0.00 (zero) balance on the account.

10. You will revoke your signature on all documents they may have.

11. Numerous State, Federal, and Supreme Court decisions on the matter are included.

12. Any evidence of a lawful debt or legal agreement must be presented to you in a timely manner, or they will be in default.

They commonly send you a response, stating you signed a contract and you must pay it, or offering you payment counseling, or even reducing the amount you owe and telling you to pay the discounted amount. They often claim to have the proper authority, but they never provide any proof of any authority. If they have the authority to lend their credit, WHY CAN’T THEY PROVE IT?

After a series of letters, you may receive a monthly statement with a $0.00 (zero) balance. They may cancel the debt, and write it off. Often, any unpaid “balance″ on the fraudulent account simply disappears. The debt may be charged-off, or sold to a collector. When you receive a letter from the debt collection company, you will then request a validation of the debt, asking them to prove you owe them any money and showing the collector why no claim against you can be maintained. A true Debt Relief Course will also teach you how to stop all of the harassing phone calls and nasty collection notices.

The process can help you avoid the invasive nature of bankruptcy and be selective over which accounts you want to dispute. You can save thousands of dollars, which may not be possible with a debt consolidation program or credit counseling.

If you entered into a loan or credit contract, you may have signed a note or contract promising to pay them back. This contract supposedly qualified you to receive the money or credit. But did they provide ‘full disclosure′ of all of the terms of this agreement? Answer the following questions and decide for yourself if the bank or credit card company was acting in ‘good faith,’ that you received ‘valuable consideration,’ and that your ’signature′ on that agreement is valid. Were you told that the Federal Reserve Policies and Procedures and the Generally Accepted Accounting Principles (GAAP) requirements imposed upon all Federally-insured (FDIC) banks prohibit them from lending their own money from their own assets, or from other depositors? Did anyone tell you where the money was coming from?

Were you told that the contract you signed (your promissory note) was going to be converted into a ‘negotiable instrument’ by the bank or credit card company and become an asset on their accounting books? Did they tell you that your signature on that note made it ‘money,’ according to the Uniform Commercial Code (UCC), sections 1-201(24) and 3-104? Were you told that your promissory note (money) would be taken, recorded as an asset, and be sold for cash – without ‘valuable consideration′ given to obtain your note? Did they give you a deposit slip as a receipt for the money you gave them, just as a bank would normally provide when you make a deposit to the bank?

“A national bank. . . cannot lend its credit to another by becoming surety, endorser, or guarantor for him, such an act being ultra vires. . .” Merchants’ Bank v. Baird 160 F. 642 There are many more cases to prove that banks are participating in deceptive banking practices, which is why we request a “zero balance due″ statement. Many banking and credit institutions discharge or cancel the debt balance because Fraud is a criminal offense.

What is Credit?

Credit is the opposite of money. Money, which is legal tender for the payment of debts, is defined by Congress in 31 USCA Sec 392. This section basically describes all coins and currency issued by the United States Government as legal tender for all debts, public and private. For purposes of this article, we will call money either coins or currency. Also, no effort will be made to argue that Federal Reserve notes are unconstitutional; that is beyond the scope of this article.

Now, if you went to a motorcycle dealer to buy a new Harley Davidson with no money down, you would say that “your credit is good.” What exactly does that mean? It means that your promise to pay money is good. In other words, they trust you. You sign a loan agreement to pay the motorcycle dealer a certain sum of money with interest, and you also sign a security agreement in which you pledge the motorcycle as collateral for the security agreement. So, the motorcycle dealer has accepted your credit, or promise pay a sum of money, in exchange for the motorcycle. Consider how different a bank loan is. When you apply for a bank loan, you sign a loan agreement pledging to pay the bank so many dollars, with interest. When the bank accepts your promise to pay in exchange for a loan, it means your credit is good. However, the next question is the most interesting. What does the bank lend you?

The bank will invariably give you a check, which is a promise to pay you so many dollars. In effect, what you and the bank have done is exchange a promise to pay. In other words, you have accepted each others credit, yet no money has exchanged hands!

Now what do you do with the check? Probably one of two things: either you deposit it into your checking account, or you take it to a merchant for instance, a car dealer. In either case, the check, when deposited goes directly to the bookkeeping department where the numbers are transferred from the check and are added to your account as a bookkeeping entry. Once this entry is made a bank will say that its deposits have increased.

How can a transfer of numbers increase the deposits? IT CANNOT! This fictional increase is all on the books as there is no increase in the actual amount of money in the bank’s vault. All of these bookkeeping entry deposits are called “demand deposits,” which means that the customer can literally walk into the bank and demand the deposit. These figures are placed into the bank’s liabilities column as money, which the bank owes people.

So, what are the bank’s assets? Interestingly, I’ve just covered part of that. One type of asset is the “deposit” which actually consists of the check you just transferred to your account. It was a loan, an IOU from the bank. Banks will count the small amount of vault cash on hand as a type of asset, also. But most of the bank’s “assets” are all the promises to pay. In other words, its loans.

Thus, both the bank’s assets and its liabilities are virtually all on paper. And, this being the case, the expression from the book Modern Money Mechanics, published by the Federal Reserve Bank of Chicago, that “deposits are merely book entries” is now easier to understand. Now, it’s also easier to understand what the electronic transfer of money is all about. All this amounts to is a transfer of numbers, or book entries, from one bank account to another. The same thing happens when you write a check. Numbers called dollars are transferred as a bookkeeping entry from your checking account to someone else’s. When a credit card is used, bank credit or book entries are created and transferred to another person simultaneously!

Hence, our money system can be described as a “debt usury” money system. For every dollar of credit that comes into existence, a debt is created to the banks and interest (usury) is charged. Under our present money system, the Federal Government will never be able to balance its budget, and the national debt will continue to grow by leaps and bounds. However, every bank loan made in the United States today is also completely illegal, as all bank loans are based on credit instead of money.

“Ultra Vires”

The words “ultra vires” are important words. They mean that “a contract made by a corporation beyond the scope of its corporate powers is unlawful.” (See Black’s Law Dictionary) The courts have consistently ruled that banks cannot lend their credit, but can only lend their money, and that all loans of credit are ultra vires.

Because no bank or credit card company charter gives them (all of which are corporations) permission to lend its credit, and Congress never gave them permission to create money, all such loans of credit are ultra wires, or unlawful. By lending credit they have unjustly enriched themselves. They pay no interest for the use of the credit, but charge their customers the same amount of interest as if they had lent out their own money. It is a racket and con game, to say the least. It is deception and fraud. The collection of interest on credit is in violation of all usury laws. After all, they are collecting interest on money which doesn′t exist. It is little wonder that as more Americans are beginning to understand this issue they are suing banks on fraud and usury charges.

Now that you have been informed concerning what the United States Supreme Court has stated and the Fraud the banks are committing, you have a decision to make. Do you want to keep supporting FRAUD? If the answer is “NO” than I can help you find a Debt Relief Course that you can be use to eliminate any kind of unsecured debt where credit was extended such as credit cards, personal loans, and certain student loans.

I have found one company that can take you through this process with integrity. Let me know if you want to know more about them.