Some of you may not know this, but it is illegal for federal banks to loan credit. (They can loan money, but they can't loan credit.) This means that any credit card agreement you have with a federal bank is actually a void agreement because they were never supposed to loan unsecured credit (credit cards) in the first place. This means you are entitled to zero balance your credit cards through arbitration, have no negative marks on your credit, and not have to declare bankruptcy. This is something the federal banks want to keep hush because all of us paying our minimums and doing the balance transfer thing are fueling the industry. 10% control 90% of our country's wealth and we as cardholders are feeding the flame.
I think it is. Clearly there is no law. And they aren't "loaning credit," they're loaning money as you make a purchase.
Re: Re: Federal Banks Can't Loan Credit of course it is http://www.federalreserve.gov/boarddocs/srletters/2004/sr0403.htm
http://www.federalreserve.gov/boarddocs/srletters/2004/sr0403.htm So now what so you think after reading this?
Ya know, anytime that someone posts something like this, I am leary because one would think they would post the "proof" about it. Why do some people waste their time with stuff like this? I don't get it.
Re: Re: Federal Banks Can't Loan Credit Because companies are charging fees upwards of $2500 for this "information"
Re: Re: Federal Banks Can't Loan Cr I'm glad the letter lbrown referenced compares this to the folks who think the income tax is illegal and you don't have to pay it. I was going to make that comparison myself, but got interrupted before I could make that post. I hear a lot of ads on the radio about totally eliminating your debt. I've always assumed it was this kind of scam. The sad thing is that you spend all of your money for a "kit" and training to learn about this. Then you still owe your debts, are out the cost of the kit and course, and now you probably have screwed up your credit as well. Everyone seems to be always looking for the quick buck, or a way to get things without paying for them. It's pretty sad, actually.
Re: Re: Federal Banks Can't Loan Credit You people sure are defensive. I'm just trying to tell you something, give you some information and some options. And you jump all over me for it. If you want proof, I'm it. You might want to consider listening for a change instead of assuming you all know everything there is to know about credit and the law. Obviously you don't - neither do I. That's where my research comes in. But you have no right to be condescending to me.
Re: Re: Federal Banks Can't Loan Cr How are you proof? Just because you may get away with something (at least for a while) DOESN'T make it RIGHT or LEGAL. Did you read the link lbrown59 posted? I think most of us here know a scam when we see (and smell) it. Give us your cites of the law--that's the kind of proof we want. You posting some bogus claim doesn't cut it. So, if you are so sure you're right, post the US Code or links to it.
Re: Re: Federal Banks Can't Loan Credit Also, that letter you referenced is not what I'm referring to. I'm talking about legal arbitration, as provided by most credit card companies cardholder agreements. Until you know, you don't.
Re: Re: Federal Banks Can't Loan Cr The arbitration clause is to keep them from having to go to district court and spend thousands of dollars defending themselves. It has nothing to do with whether they are making a legal loan.
Re: Re: Federal Banks Can't Loan Credit Hedwig, I think you're playing for the other team. It is not a bogus claim. It is LEGAL ARBITRATION and banks don't have a right to loan credit which is exactly what credit cards are. That blows your entire world up because you ASSUMED YOU KNEW THE FACTS. YOU WANT THE TRUTH, BUT YOUR MIND ISN'T READY TO HANDLE IT YET.
Re: Re: Federal Banks Can't Loan Cr As I said, they aren't LOANING CREDIT. They are granting you the right to BORROW MONEY on an ongoing basis as you make purchases. Take some fiance and economics courses. You probably also believe that the Secretary of the Treasury authorizes the Bureau of Engraving and Printing to roll the presses and more money is put into circulation. That's also incorrect. Only the Federal Reserve can put money into circulation, through the sale of government securities.
Re: Re: Federal Banks Can't Loan Cr Actually, the crux of this question isn't even if the federal banks are loaning "money", extending "credit" or accepting wooden nickles. It makes no difference. At the heart of this legal argument is this: federal banks were designed to protect people's money, and a bank's making money by extending credit flies in the face of that. They cannot enter into a guarantee surety agreement. I'm not talking about mortgages or auto loans. I'm talking about credit cards That's a surety agreement. Simply put, it is implied law vs. expressed law. The law is that federal banks are to protect people's money.
Re: Re: Federal Banks Can't Loan Cr http://www.freewill4u.com/idebt.htm According to UCC Article 3, Section 603, if you make an offer to pay off your debt obligation and it is refused, the "lender" is in default and the debt is no longer valid: The debt is discharged because the lender is in default. What the UCC REALLY says (b) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument and the tender is refused, there is discharge, to the extent of the amount of the tender, of the obligation of an indorser or accommodation party having a right of recourse with respect to the obligation to which the tender relates. Here's the definitions of an instrument http://www.law.cornell.edu/ucc/3/3-104.html#Instrument_3-104
