This information is intended for informational and for educational purposes only and is in no way to be considered legal, financial or professional advice. No representation or warranty (expressed or implied) is made for any particular purpose; and Texas Self-Help Law Clinic does not endorse this procedure.

The information contained herein comes from reported actual experience. We’ll call this individual “Joe Dokes”; and attach the documents where you can find and read how he solved a credit card debt of over $17,000.00. No suggestion is made or implied that the exact same experiences will happen to you; nor is it suggested that you follow the same course of action as “Joe Dokes”. Joe Dokes felt disgusted with himself and depressed over the mess he had created. He was having trouble making the monthly minimum payments and was falling behind. At times, it felt like his whole world was falling apart. The harassing telephone calls from credit card companies demanding payments weren't helping either. Looking for solutions to this financial problem that permeated every aspect of his life, he did some research into debt consolidation, re-negotiation, reduction, and even bankruptcy. These options seemed to offer different chains of slavery to his debt. In a way he felt trapped. He knew that he didn't want to become a slave to the debt for the rest of his life, and secretly wished that the burden of debt could somehow magically disappear - that he could just snap his fingers and poof it would be gone. And then one day, he found exactly what he was looking for - Credit Card Debt Termination. At first, it was hard to believe and sounded too good to be true. But he like he had run out of options, and decided to investigate. You’ll learn here:

• why it is possible to terminate unsecured credit card debt,
• what actually happens when you sign up for a credit card,
• where the money comes from on your credit card,
• you’ll learn how to stop telephone calls from credit card companies and collection agencies, and
• you’ll see the letters Joe Dokes sent and received for each of four credit card accounts.
  

Things will be explained in the context in which they are presented. This way you can flow right along. After the letters you will find some quotes from Federal Reserve publications and how some interpret them. You are in for quite a surprise as to how our money system operates. Joe found a number of resources that I think will aid in your understanding. You may be shocked learn why a Federal Reserve note isn't worth a dollar, the story behind the creation of the Federal Reserve, and how money is created.

Perhaps you may believe as almost everyone, that banks loan you their own money when you sign up for a credit card. This is completely false. At no time does the bank loan you any of their own money or any of their depositors' money. In fact, they are prohibited from doing so under the Federal Reserve Banking regulations. When you sign up for a credit card and the bank approves your application, they use your name and your signature on the application to create the money to fund the card. The bank didn't have the money until you signed the application. In other words, your signed credit card application (a "promissory note" backed by your future labor) is converted into a "cash" asset by the bank. In fact, the bank endorsed the back of your credit card application (promissory note) just as it would any other deposit, and then deposits it into what is often referred to as a "transaction account" (a special account no different than a checking account that is opened under your name, but without your knowledge or consent). The bank then returns the cash to you ("your loan"), but also wants you to pay back this "loan" (of your own deposit) as if the bank had loaned you its own money. The Federal Reserve Bank of Chicago in their publication Modern Money Mechanics had this to say on page 7:

“Of course, they (the banks) do not really pay out loans from the money they receive as deposits. If they did this, no additional money would be created. What they do when they make loans is to accept promissory notes in exchange for credits to the borrower's transaction accounts." 

How does it feel to realize you have been paying the bank interest on your own money? What a deal for the banks – having you pay back your own money plus interest.  Want to learn how to use 15 USC Sec. 1666(a)(3)(A); 15 USC Sec. 1666(a)(3)(B)(ii); and 15 USC Sec. 1666(d) The "FAIR CREDIT BILLING ACT VIOLATIONS" to make the bank  relinquish the right to collect any alleged debt on the account (12 CFR 226.13(d)(1); expose the bank to liability for actual damages plus twice the amount of the finance charges (15 USC Sec. 1640(a)(1)&(2); and expose the bank to potential criminal liability for willful and knowing violation of the FCBA and other Truth in Lending provisions (15 USC Sec. 1611(1)&(3)).

Find out what Joe Dokes did to "terminate" his credit card debt by downloading the NewCreditRepair.doc in MSWord below.

REMOVING "CHARGE OFFS" FROM YOUR CREDIT REPORT:

Many people believe the Credit Bureaus are required by law to keep derogatory items on your credit report for 7 years or in the case of bankruptcy, for 10 years.
Just the opposite is true!  Credit Bureaus are required by law to automatically remove all derogatory items older than 7 years or in the case of a bankruptcy, 10 years.  In fact, there is NO LAW that REQUIRES that Credit Bureaus report anything about you at all!

Many also believe it is impossible to get a bankruptcy off their credit report.
Bankruptcies come off just like any other "derogatory" that is incorrectly reported, obsolete, erroneous, out of date incomplete, misleading or that cannot be verified in a timely manner.

The information on your credit report can be changed!  Remember who owns that information?  You do.  In fact, the Fair Credit Reporting Acts, both Federal and State, REQUIRE that it be changed or removed if it is not 100% legally accurate or cannot be verified. That's what the Fair Credit Reporting Act is all about.  It was enacted for the very purpose of giving consumers like you and me the power of law to back us up against the intrusion of the Credit Bureaus into our lives.

Just because you finally paid an old debt does not change or erase the fact that at one time you were not paying it as you agreed. This record can absolutely be changed!  Remember who owns that information; you do.

Many believe "inquiries" on your credit report are not derogatory and will not affect your credit standing.
This is untrue. ANYTHING that erodes your financial credibility is damaging to your credit standing.  In the case of inquiries, 1 or 2 are not bad, but any more than that and they begin to tell a story all their own. Any prospective credit grantor will look at your report and think, "These folks have been all over town looking for credit, and can't get any."  Do you think that he is going to give credit when"others" did not?

If you get a 'derogatory' legally removed, it will not come back. When it is removed for cause under the law it cannot be put back on your report.  The same law that required its removal prohibits it being put back on.

Find out what Joe Dokes did to eleminate the "charge offs" from his credit report by downloading the DisagreementLetter.doc in MSWord below.