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Is Credit Card Debt legal??


mangerhotel
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I am 25k in debt with Discover. My attorney friend tells me that I legally have no debt....he says that these cc companies are lending credit not actual money which is illegal. He says that if the CC company actually had a legal contract with me and set up a bank account with my cc money in it...then I would owe them the money. He is advising me to sue them based on the UCC code??? Anyone out there ever hear of this??

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:roflmao:

Sorry, but that's pretty darn funny.... Did you sign an agreement with Discover when you opened your account that stated that they would provide you credit and in return you would pay it?

I remember some discussions about UCC over the years but not the context of those discussions. You could do a search here for UCC and bring them up!

Thanks for the laugh...

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It was simply a question, I am not a lawyer so I simply listen. Question, if credit card debt is so legitimate.....why do CC companies write off 50,000 cards a day, and simply dont try to recover the money??

Because it become uncollectible-that doesnt mean it is not still owed. And writing it off doesnt mean it goes away. A lot of this debt is sold to others so they can try to collect it. Writing it off gives the company a tax break so they at least can recoup something from nothing. Plus the amount they make from selling it (usually pennies on the dollar) they get towards the original amount owed.

I didn't mean to laugh at you-it was just funny! I meant no offense!

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I am 25k in debt with Discover. My attorney friend tells me that I legally have no debt....he says that these cc companies are lending credit not actual money which is illegal. He says that if the CC company actually had a legal contract with me and set up a bank account with my cc money in it...then I would owe them the money. He is advising me to sue them based on the UCC code??? Anyone out there ever hear of this??

:roflmao::roflmao::roflmao::roflmao:

I needed a good laugh... Please, only post legitmate questions on these forums! And if you are interested in continuing to give us a good laugh, then please go to the Off Topic forum where we talk about silly incoherent things.

Let me kill this urban legend right now. Attorneys do not believe in that. Yes, there are some who have been disbarred or who are conspiracy theorists who may advocate that. But generally, lawyers are well versed in contract law and case law and the legal precedents of their jurisdiction for the last 50 years.

And just like ghacorp brought up, it runs along the lines of the urban legends of people who don't pay taxes because they believe they are not legally required to do so even though we have a court system that said we have to. Those are just scams, hoaxes, urban legends, and whatever else you want to call them.

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Question, if credit card debt is so legitimate.....why do CC companies write off 50,000 cards a day, and simply dont try to recover the money??

50,000 a day? Where did you get that number.

Let's multiply 50,000 times 365 days. We get 18,250,000 a year. That is a whole lot of credit cards to write off a year for EVERY year.

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And just like J Snow... I meant no offense... And I do apologize...

Those are actually serious questions because they have circulated through the Internet for some time. But they are urban legends much like the tax evasion ones.

And please do continue to post because it is good to bring them up for healthy discussion...

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Im paying 29% on my 25k card, thats better than most hedge funds return...lol. Its amazing that the CC companies can get around the "usery" laws.....anyway I continue to pay rediculous minimums..lol

The best way to end that once and for all is to get a bill's consolidation loan. That is, a signature loan to zero out that balance so that you can pay down that balance with a low interest rate.

I have done that quite a few times with some outrageous interest rates.

And 29 percent is chicken feed. I have had installment loans with 33 percent and loan sharks of up to 88 percent. Payday loans are even higher...

How much of a balance do you have on that credit card?

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Hmnnn... It is pretty hard to get a loan on the full 25k but it depends entirely on your credit score and your income...

I would check out this web site:

http://creditunionaccess.com/

Credit unions have so much more leeway than most commercial banks especially in bill's consolidation loans. That web site can help you locate the credit unions in your area...

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i know this is your friend, but be careful about attorneys. they do say stuff like that occassionally. the fact of the matter is if credit card companies were illegal, they would't be around. you signed a cardholder agreement, which states you agree to pay back the debt. these agreements do hold up in a court of law. do not take the chance of disputing such things, especially with such a high amount. here's my personal opinion on the matter...we all know that when you get a credit card, you are entitled to pay it back...so why are people trying to get out of that? if you didn't have the money to pay it, you shouldn't get the card. this is a matter of good faith more then anything. there is no such thing as free money. please people, when it comes to your credit, don't listen to attorneys. they really couldn't care less about your credit (speaking of sharks)!! you do what you honestly think is right...and honesty is the key word here.

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I have heard of this ploy before.

The same company that left me in a mess (a debt settlement company) got away with arguing some of this. I don't know how they did it exactly.. but they did.

I am sure you have to be a pretty fast talker and lie alot in order to get away with it.

just as sshatzer22 says... if CC were illegal, they wouldn't still be in business. You agreed to borrow and pay the money back... just the moral aspects alone, I can't believe that people would even try it. I wouldn't reccomend pursuing that road.... you could end up in more trouble than you ever imagined.

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I believe Commercial Redemption is the name of what some groups use to argue the illegal nature of CC lending.

This is backed by some very radical groups. I dont care to be the martyr for a cause whether it may have merit or not.

I'd rather be with my family with the phone ringing night and day than in a cell celebrating my moral victory.

Gettinout

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