The Details of the PlanOne of the best documents ever written dealing with this subject is “Modern Money Mechanics,” the Federal Reserve Bank’s own manual. The document plainly lays out the process by which money is allowed to be created, and the method used by some banks and credit card companies is not one of them. As a standard of comparison, let’s look briefly at a car or home loan: There, you are transferring to the bank the value of your home or vehicle in exchange for a loan of equal value. But with most credit card companies, there is no value exchange, and the money they’re “lending” you never existed before. They are creating new money using your signature and promise to pay. Think about it: Up until the time you signed the document, that money would not have been found anywhere in the credit card company’s accounts. So how did they manage to “get that money from you?” Did you lend it to them so they could turn around and lend it back to you? Of course not. They simply determined that the maximum amount available on that credit card you signed up for was what your signature was worth, so they gave themselves the money to post to your account. This is called “monetizing a signature,” it’s a form a counterfeiting and it’s against the law. Having broken the law when they entered into the credit card contract with you, those creditors have placed themselves in a precarious position. It’s a false contract that you are legally, ethically and morally free to walk away from, and the card companies know it. That’s why a majority of them barely put up a fight when our clients send them the first notice of dispute from the DRES program.
These are informed questions, and if this sounds like what you’re already starting to ask yourself, you’re ready to begin your education. Consider one of these four next steps:
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