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Winning cases against CC companies with Contract Law


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I have 1 year of law school, and have become aware of a national network of attorneys who are invalidating CC debt utilizing basic contract law. The success rate is apparently around 70%, but results very from state to state depending on how "consumer friendly" the state in fact is. These attorneys across the country actually go in front of the judge and litigate essentially establishing that there was never a "meeting of the minds", also that CC companies are not allowed by law to lend "credit", basically espousing that there was never a valid contract, hence the consumer is not liable. Many attorneys will dismiss this courtroom success as a fluke, but it is worth noting that this credit validity issue is being litigated and done so successfully.

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As with most rumors there is a grain of truth mixed in with the BS.

Banks are not permitted to lend their credit to each other. That is illegal. However, they most certainly are allowed to lend to consumers. So that's twist #1.

There is some truth to the fact that contract law requires a contract not to be so one-sided as to be unfair. This is called "lack of consideration." CC contracts general do not fall under this definition because the consumer is getting a benefit from the contract. Where the rumor comes from is that sometimes the CC company oversteps how far they can stretch their little "we can modify this agreement at any time" clauses. If the CC company goes too far in their modification of the terms after the contract is entered into, they usually are not able to enforce that provision. A good example is the recent trend of adding mandatory binding arbitration clauses to customer accounts that previosly did not have any arbitration clause at all. This has generally been deemed unfair and tossed down by courts. BUT, most contracts have a severability clause that protects the remainder of the contract if any portion is deemed illegal/unfair. Only the unenforceable provision dies, not the whole contract.

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As I am 30 and only have 1 year of Law School under my belt, I will defer to the learned evaluation of a licensed attorney. Like I have said I have been witness to case after case where Credit Card debt was invalidated as a result of the lack of a contract.......the litigation lawyers I know and observe in court at least 65% of the time are able to dismantle the CC attorneys claim by in fact applying the general principals of contract law such as meeting of the minds. In cold reality the CC attorneys in many cases dont show up to court...lol. Look at it this way....the credit card companies write off 50,000 delinquent cards a day, they do so because they know that if a massive class action comes about they are committing HUGE fraud by lending consumers credit they created with the consumers signiture and fractional banking. There is no consideration, you are giving credit to yourself with your own signature, the CC company is simply a predatory vehicle who charges exorbitant interest rates.

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This debate comes up here from time to time, and it is tiresome to debate, so here are my thoughts, and I will leave it at that:

If it were that easy to beat the CC companies, they would have either lost billions by now, or lobbied to have the law changed. I was incorrect before about the term. The term to Google is "debt elimination"

Here are some websites that espouse the tactics you are claiming:

This is what I found-they are trying to claim that when you sign a contract or promissory note, it becomes a negotiable instrument, which can be sold to other banks. They go on to say that this means you are making your own currency. Since it is illegal to make your own currency, the contract is null because it is illegal.

Whatever!

Read on:

http://www.zerooutdebts.com/cc/UnsecuredDebtTerminationProgram.htm

Some of the things they claim are outrageous!

The fact that you have a whole year of law school is immaterial. If you want to make a claim like this, back it up with statutes or case law.

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Recovering Attorney I am not judging the moral issue involved with invalidating debt, or for that matter just not paying it.....perhaps you would like to bring back debtors prison...LOL Fact cases are being brought on behalf of consumers against the CC companies to invalidate debt and many are being won on basic contract law, the very interesting thing is that in many cases as I have witnessed the CC attorneys simply dont show up to court surrendering judgement to the Consumer. The contract argument on a state level isnt a failsafe methodology its probably in my estimation 65% effective depending on the state and on the judge etc. But don't fool yourself the CC companies are being challenged on a contract level quite frequently.

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Hi DiveMedic,

I think the major question is "Why arent the CC attorneys showing up to many of these court appearances??" When it comes to actually winning the case as I have said the majority of cases are won on for instance lack of meeting of the minds, lack of consideration etc. I will speak with one of the attorneys I clerk for and procure some case info for you. Hope all is well.

Regards

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