Thursday, October 22, 2015

Debt Contesting Essentials - Contract, Consent and Conditional Acceptance | Unsecured Debt Can Be Terminated

For the average person living in society today, debt is an ever-present concern. Most of the money we make during the course of our lives goes to paying back debts for cars, housing, medical expenses, and so on. But what if almost all debt was an elaborate fraud and could be contested lawfully? The following article will attempt to cite key knowledge and understanding demonstrating just that. 

The Fraud of Bank Credit

In order to understand how to contest debt successfully we must understand where the source of the credit came from. As the below article asserts, banks don't lend anything, they actually convert our credit into a debt, a type of deceptive fraud founded on our ignorance. 

Related Where Does Money Come From? - The Fraud of Bank Credit | Do you own a home? A car? Do you have a credit card or a student loan?

Here is an excerpt from that article:
Here's how it works. When you walk into a bank looking to receive a loan to buy a house, car or what have you, a loan application is needed. On this loan application you list your identifying information, the amount needed, and a promise to pay back the loan over a period of time. This is a contract, and a negotiable instrument - it's money. The local bank then takes this bond, and goes to the Federal Reserve Bank to have it converted to Federal Reserve Notes. These FRN's are also negotiable instruments, they are I.O.U.'s from the UNITED STATES OF AMERICA to the Federal Reserve. In other words they are a promise to pay, exactly like what you just filled out at the bank. The bank then gives you the loan amount (which it did not have before you signed the application) and charges you interest for the 'risk' you are burdening the bank with. 

Here's the problem with this whole scheme: it's a deceptive fraud. The Bank never lent you any money, all they did was act as transfer agent. The Federal Reserve didn't lend you any money either, they merely accepted your loan application as valid tender; money. And since none of this was fully disclosed to us, it is a contract made without full disclosure; it is null and void." - END OF EXCERPT.
This means that all bank loans are fraud due to misrepresentation. The bank falsely claimed the funds were lent to us. But in order to use this knowledge, we must understand how to negotiate an honorable contract. One way to do this is to recognize how dishonorable and deceptive contracts have become in society. 

Adhesion Contracts - 'take it or leave it' Agreements

Consent and Negotiation are the essential tools we each have at our disposal to fight fraud and cooperate honorably with our fellows. This metaphysical force of creation can never be truly taken away from an individual, but we can be deceived into thinking that it can. 

Adhesion contracts are a type of agreement that is inherently deceptive, based on an implied obligation on our part; a presumed inability to negotiate. This is a legal fiction, something that does not exist in reality, but can be thought of as real because two or more people agree that it is. 

An example of an adhesion contract would be income tax imposed by the IRS, which is stated as an obligation, not able to be negotiated. 

A contract that presumes one must agree or is obligated to do so can only be enforced if the presumption of consent, on our part, remains unrebutted. In other words, we must actually point out the deception by asking for proof that consent was given before hand, and since no such agreement ever took place, all adhesion contracts can be renegotiated. The technique for re-negotiation is called Conditional Acceptance, consenting to a contract on its merits provided each item can be verified materially. 

In law, in order for a contract to be binding, valid and lawful, each party must have consented to the terms and conditions with full knowledge and good faith. If an agreement is inherently deceptive (like an adhesion contract), than it is void and non-binding, it has no ability to be enforced because no true consent was ever given. How can we honestly consent to a contract if it was made under false pretenses?

Conditional Acceptance

Since adhesion contracts are based on a presumption that we agree to 'take it or leave it', they can be voided by simply rebutting the presumption of our consent to these terms and conditions of adhesion. In order to do so honorably, that is without creating controversy; we will consider all adhesion contracts as an offer to contract, which can then be denied like any other offer. 

This is important because in law, a competent party address all offers to contract honorably, all concerns or problems are acknowledged and addressed with honesty and fairness. This is what a sovereign does so as to avoid creating harm and chaos. 

How do we negotiate with banks, lenders and debt collection companies that use deceptive adhesion contracts? By accepting the offer on its merits and simply asking for evidence that a contract actually exists in the first place. In this way, we force the other party to prove their case materially, which they cannot do in most cases, and the contract becomes void due to lack of standing. We accept in good faith, that we may have a valid debt to pay back, but in good faith the other party must prove as much. 

Julian and I discovered these techniques in 2013 and were successful in contesting a great deal of debt. Julian produced an article about his experiences and was able to context over $100,000 dollars in debt before passing away in August of this year. See the below linked article for more on his process with detailed examples and letters.

Related Julian's Debt Contesting Experience

Debt Contesting Essentials

There are many different methods and techniques for contesting debt, but all are all founded on the same set of principles. 

A debt collector, whether a bank, collection agency, the IRS, etc all make contact with you, the potential debtor. This is when they claim you owe some amount of money because of something you received or services you benefited from. Although the agent contacting you will never say so, this is an offer to contract in and of itself. 

Conditional Acceptance of Offer

Here is a general outline for how debt contesting would occur using the methods described above. For a more detailed examples search engine 'debt contesting;' there are volumes of research to be done, all of which is essential to building confidence.

At this point we simply want to accept that the offer is being made. "Thank you for contacting me ABC debt collection. I would be happy to pay back the debt, if...

We just accepted the offer, but we have provided our own terms and conditions by saying "if." This is where we ask for evidence that a valid binding contract was in place. 

"I would be happy to pay back the debt. Please send me the original wet ink signature contract, between myself and yourself, clearly stating my intention to make payment for services received." You can do this over the phone or in writing, but in either case we are asking for proof of the debt, we require validation a valid binding contract is in place. 

By accepting the face value of what the other party is claiming we place the burden of proof on them, while we also rebut the presumption of prior contract by asking for evidence; a wet ink signature on a document clearly stating the terms and conditions. 

What we are actually doing here is negotiating a new contract with more favorable terms and conditions. 

Negotiating New Terms

After asking for verification of the debt, we also want to set some new terms and conditions for future contact. We want to tell the other party that unless the debt can be verified, any further contact on the matter will be considered a request for advice on our part, which comes with a cost. In other words, we consider picking up the phone or opening letters addressed to us as consulting, that you are telling them before hand costs money. 

For example, if a debt collecter sends you mail in relation to a debt, send a letter back asking for verification and that if any further contact happens without first verifying that the debt is valid, it will be considered consultation. Provide a fee schedule with your response. Also provide a time of expiration for negotiation, which says, "all the terms and conditions for my consultation services will be considered accepted, by you, unless a written response is received within 10 business days."

In some cases, people have been known to charge $1000 dollars per phone call or letter received after a sending out the verification letter along with new terms and conditions. In most cases, since no valid contract exists and your new contract for consulting services is too expensive for them, they will stop trying to collect on the debt. 

Debt Collectors

A debt collector is a third party company that was assigned the debt from the alleged original party. Debt collectors often buy debts at pennies on the dollar, which the original party accepts as payment. In other words, debt collectors literally pay debts on our behalf and then attempt to negotiate a contract with us for repayment. The fact that original party accepted funds from the debt collector is prima facie evidence that the original agreement has been satisfied.

Because we never knowingly, willingly or intentionally made a contract with this third party, there is no debt to pay back. The debt collector decided to pay the debt hoping that it might be able to coerce us into paying them back. In these instances, we simply need to ask for a signed wet ink contract between ourselves and the debt collecting agency, which they cannot provide and again the matter is usually dropped. 

But what if you started paying a debt collector, can you still void the contract? Since the debt collector misrepresented the facts by claiming you owed them money when in fact no valid debt was in place, the same general process applies. 

Send a letter asking for the original contract and verification of the debt, which again doesn't exist. The debt collector may try to assert that you sending them money before created a new contract, and this is true, but since they deceived you when making this contract it is null and void. After you ask for verification, and none has been provided within the time allotted, send them a letter back stating that they are engaging in fraud and you are reporting them to the FTC. This usually stops them in their tracks, as they would rather not overtly break the law. 

Credit Reports

How do you get debt removed from your credit report? This has become easier over the years, as many websites now do debt contesting online. If you context a debt via a credit-reporting agency, and the originator of the debt does not provide verification to the agency within 30 days, then the debt must be dropped from your credit report. 

In cases where you asked for verification of the debt and none was provided, you can send these letters to the credit reporting agencies and ask that the debt be removed for to lack of standing. 

In one case, Julian had a $17,000 non-government student loan through Chase Bank. Chase sold the debt to a third party that contacted him attempting to collect the debt. Julian sent letters requesting verification and a copy of the contract with his wet ink signature. The third party never provided what he requested, and instead simply sent a receipt from Chase saying they sold the debt to the third party company. Julian sent a letter back saying this was not valid and began issuing invoices for his consultation services, to the tune of several thousand dollars in Sterling Silver. The third party company decided to return the debt back to Chase. Julian contacted Chase and asked for clarification on his debt, at which time they told him they had no such debt. 

In other words, Chase said Julian had no debt with them and the third party collector was saying the same thing. Julian took all this and sent it to the credit reporting agency. He didn't check his report for another year or so, but upon his last review, the agency had marked his Chase debt as PAID and in good standing. 


The theme should be clear: knowledge will only lead to power, if acted upon. Having knowledge about the fraud in the financial system isn't enough; we actually need to use it properly in order for it to benefit us. 

Debt contesting has many forms and methods, some more successful than others, but all founded on recognizing fraud and clearly asking for clarity on alleged debts. In the absence of validity, a debt will always be rendered void, but only if the presumption of its validity is dispelled. 

To be clear, the justice system works exactly the same way. Fraud and tyranny continue to reign because good people, who have knowledge, do nothing.

Contesting debt is one way to become braver in facing the despotic institutions of our age. As each individual finds key knowledge and uses it to empower him or herself, they encourage others around them to do the same. Eventually the mass acquiescence that has plagued our world for millennia will crumble due to a knowledgeable and active population of sovereign people. 

- Justin

Source - Stop the Pirates

Debts can be purged using the Fair Debt Collection Practices Act. Credit history can be restored by using the Fair Credit Reporting Act. Creditors can be defended against with knowledge of simple contract law, Generally Accepted Accounting Principles, rules of court and the basis that banks do not loan anything. Debt collectors can be defended against with the basis that an assignee cannot establish any contractual nexus to enforce a claim. Banks are prohibited from loaning. They can’t loan other depositor’s money because of the matching principle under GAAP. They can’t loan out nor risk any of their own assets because of Federal Reserve regulations.

In order to accept a credit application or promissory note, the banks must convert the customer’s note into a check and give it back to him. Only they can do this because they have a monopoly on negotiable instruments. It is the customer who creates the currency and funds the line of credit to himself. The customer is the depositor (creditor). The banks conceal this fact by carrying out what appears to be a loan approval process for each customer. There is no loan from the bank.

The object in defending yourself against a creditor that has not assigned the account to a debt collector is to manipulate the creditor into a new agreement and/or force the account into collections.

The creditor can be sent a notice of final payment with the expectation that the creditor will not dispute the payment or its terms in writing, thereby accepting it as payment in full. When the final payment is accepted, and the creditor has failed to respond or object to the notice of final payment, it makes it very difficult for them to maintain a claim against the account holder.

In practice, the creditor will call you to ask about late payments. It is prudent to take a record of the caller’s name, company, mailing address, and phone and fax numbers, date and time of call, and then request that the caller limit communications with you only to writing. It is best to disconnect the call after obtaining this information and then to send a written correspondence making the same request.

If the calls continue, you can do this again or make a complaint with your state’s attorney general’s office. In most cases, the creditor will assign the account to collections. Once this happens, the third party collection efforts are regulated under the Fair Debt Collections Practices Act. The debt can be assigned, but that doesn’t automatically mean that you have a contract with the new 3rd party debt collector; in fact you don’t as long as you don’t contract with them by acquiescence.

The third party assignee usually has no agreement with the debtor, so in order to recover the loss that it chose to incur; it needs the debtor’s consent. This is usually obtained by deceit, by tricking the debtor into accepting a new obligation. You can request from them a validation of the purported debt. This they’re not going to be able to fully respond to – the collector never provided any services or products, neither is there an automatic obligation for you to pay. When the collector responds with anything but some written agreement, evidence of your consent or evidence of consideration (e.g. payment), they have failed to validate. 

Most collectors who receive this request will never pursue the collection. If the collector persists in ignoring your request for validation, a complaint to the Federal Trade Commission may be appropriate. Just listing the address for the FTC on the second notice is likely to get positive results.


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