Disclaimer

Warning: This information is not intended to constitute legal advice and should not be relied upon in lieu of consultation with appropriate legal advisors in your own jurisdiction. It may not be current as the laws in the area of informed consent change frequently.

The process of confiscation and illegal siezure of money and property starts with the banks' illegal creation of money and ends with the bottom feeders - the debt collectors who prey on those who are down and out. The debt collectors, comprised of lawyers and debt collection agents feeds on the accounts that have been written off by the banks. The debt collection process starts from the banks' own collection departments as soon as the accounts becomes delinquent. The banks' own collection agents start sending written notices and reminders to let you know that you have missed a few payments or soon after, they let you know that your account is past overdue. They still have to do this inspite of the fact that the banks actually never loaned you any money and the loan was nothing but a scam, a fraudulent scheme to turn you into a debt slave and then confiscate your property despite the fact that they never really risked or lost any money in the process. They had to go through the charade not because they have lost any money or that they could lose the money because you cannot pay your so-called debts, but the real reason is: they don't want to blow their cover! So they go on pretending, threatening you in the process, that they will report the matter to the credit bureau and thus ruin your credit, or that they are going to take legal action against you. Usually it's all smoke. Other than the fact that they will report you to the credit bureau, if they haven't done it already, they don't normally take anyone to court just yet. Debt collectors cannot take you to court simply because you do not have a contract with them and they do not own the accounts.

The next step is the bank writing off the delinquent account, usually after six months. The reason is, it is very expensive and time consuming for the banks to do debt collection themselves and therefore they prefer to throw the account into the "pile", or the delinquent account database just like garbage being thrown overboard from a ship, where the bottom-feeding creatures feast on the garbage. Once the account is in the database and fully accessible to the debt collectors, they sign in on the account one at a time and start their dirty work. Some credit card companies like MBNA employs its own army of debt collection agents and staff lawyers who does nothing but debt collection work. These corporations seldom use outside collection agents to do the dirty work, they prefer to do it themselves. Most banks however simply assigns the debt collection work to the debt collection agencies. Some collection agencies actually buy or trade accounts.

What to do when the debt collectors start bugging you.

Number one is: never, never ignore them, especially when the banks starts the collection process. You meet them head on by replying to their collection letters. Do not reply to them over the phone, this is useless, unless you are able to record your conversation with them. First thing to do is dispute the amount in writing, never admit that you owe them anything because you really don't. Because they never really gave you any valuable consideration, they never could have lost anything; you have to ask them for a proof of loss; you also ask them for a certified or notarized copy of the contract between you and the bank; ask them to return the original promissory note or loan application they got from you. Chances are they do not have it. Why? Because the contract does not exist. There is no contract. What they call a contract is the loan application they took from you. That is not a valid contract. A valid contract must be signed by two parties; the bank never signed anything with you. There is no such thing as a unilateral contract. In the case of a credit card agreement, the contract is the credit card holder agreement is nothing but an agreement between you and the bank which enables them to charge you an annual fee for using the card. But as far as loans are concerned, there is no such thing as a loan contract. Because if there is, it would not be hard to show that they have breached the contract for non-disclosure of material fact, or the fact that they have not loaned you any money.

It is very important for you to do these initial steps because you are establishing for yourself the evidence that you can use in a court of law should the banks or their agents (lawyers) decides to escalate the matter and take you to court. The idea is to accumulate enough evidence that the banks have failed or refused to provide you with any verifiable evidence that you owed them anything. Once they failed to produce the evidence you need, that in itself should discharge their claim - they have no claim.

Once you have the evidence that the principal or the creditor has no verifiable claim, their lawyers and debt collection agents would not have any verifiable evidence either and therefore these third parties or agents have no legal standing to bother you. The biblical principle that says: "no man is greater than his master" applies here. If the principal has no claim, no one else have any claim, simple as that, so do not be afraid of them.