Dealing With "Debt" Because of the very high percentage of the money earned being taken away from the average person, it is not unusual for people to end up with what looks like "debt". Most people spend their time worrying over the statement of what they are told they owe, and do endless calculations to see if they agree with the numbers which they have been sent. Again, this is the sort of misdirection which magicians use to fool audiences, distracting their attention away from where the action is really taking place. Here, the question is really not "How much is owed?" but instead it is "Is anything actually owed?".
You need to remember that any financial institution is a legal fiction and does not actually exist. As a result of this, it can only deal with other legal fictions (essentially, other pieces of paper) and it can't have any dealings with a man or a woman as they are not legal fictions. It is also important to understand what passes for money nowadays. Let's say our trusty friend James Martin goes looking for a loan and he fills in an application form with the Swindle Bank Limited for £10,000. Interestingly, the form which he is asked to sign, says that he has already received the £10,000 although the loan has not yet been approved.
The next day, the loan is approved and James is handed a cheque which he is asked to sign and lodge to his account with the bank. We won't follow up on that very interesting procedure at this time, but please remember that he has now provided two signatures for £10,000 in the strawman name, and all he has received is a 1 and four zeros in the accounts of the Swindle Bank Limited.
All goes well for several months until James loses his job and does not manage to get another one. This is financial trouble which he does not know how to deal with. Time goes by and James has not had sufficient money to make payments against his loan from the Swindle Bank Limited. He starts getting letters from the bank saying that he must pay the arrears immediately and keep up with the payments in future. There is not the slightest chance of that happening as James just does not have the money and he does not know what to do.
Fortunately, Peter, the next door neighbour of James happens to be an independent financial advisor with years of experience, and James has the brainwave of asking him for help. Peter is willing to help and so he sits down and goes through all of the paperwork. Then he tells James: "You must not ignore this situation. Write back immediately and say that you agree to pay any financial obligation which you might lawfully owe, ON CONDITION that they:
1. Provide validation of the debt, that is, the actual accounting.
2. Verification of their claim against you, that is, a signed Invoice.
3. A copy of the Contract binding both parties (you and them), and send that letter by recorded delivery so that there is an independent witness to it having been delivered."
Every letter you write should be marked clearly "Without Prejudice" which means that you reserve all your lawful rights and accept no contract unless it is shown to be lawful by meeting the four conditions essential to a lawful, binding contract, namely:
- Full Disclosure (you were not told that you were actually creating the credit with your signature)
- Equal Consideration (they brought nothing of value to the table and so have nothing to lose)
- Lawful Terms and Conditions (yours were actually based on fraud), and
- The signatures of both parties (corporations can't sign because they have no Right or Mind to contract since they are soul-less legal fictions, and no third party can sign a contract on their behalf)
Peter then tells James that agreeing to pay, provided that evidence of a lawful debt can be produced, stops him being taken to court because courts only adjudicate between parties who are in dispute, and as James has agreed to pay, there is no dispute, so the court would not accept any application for a hearing. If the Swindle Bank were foolish enough to try, James has only to send the court a copy of his letter agreeing to pay and the case would be thrown out immediately (and the Bank might well be penalised for wasting court time).
The bank is now in trouble as it has been running a con game on James and so can't produce the documents for which James has asked. The request by James was reasonable in every respect. However, a loan agreement is a contract and so there has to be full disclosure of all the details (which there wasn't), both sides have to put up something of equal worth (which didn't happen) and the contract has to be signed by both parties (which the bank can't do). So, the bank has a real problem.
The bank will probably send a Statement of what it wants James to believe is the outstanding amount. James should return this with a polite note saying that a Statement is not an Invoice, so would they please provide a signed Invoice as requested. They will also probably send a photocopy of his Loan Application form, at which point James should write back and point out politely that it does not constitute a contract as it is only signed by one of the parties (himself) and he has asked for a copy of the Contract signed by both parties.
The bank is likely to go silent at this point and stop corresponding with James. James should then write again, requesting that the necessary documents be sent to him within the next fourteen (or perhaps 28) days, and if that does not happen, then he will consider the debt to be fully discharged.
The bank will either remain silent or write back to say that the debt is fully discharged. If the bank tries phoning, then just tell them politely that you only wish to deal with this matter in writing, and ring off. If the bank remains silent for the stated period, then James should write back stating that due to the bank's failure to provide the necessary evidence of a lawful debt within the reasonable time provided, that James now considers that the debt is fully discharged and ask the bank to confirm that in writing. The bank will normally write back confirming that the debt is fully discharged and that there is nothing owing and if it does not do that, then it will just stop asking for any further payments.
The reasons for how and why this takes place, takes a good deal of explaining and many people find it difficult to understand. So, it is covered in detail here. Many people think that this process sounds like you ripping off the bank, but this is definitely not the case.