Media13.com is a source of free to republish or reprint articles, writers may submit your articles in our database as long so you agree that your article will be freely republish or reprint by other.

Submit Article

Search our database

Received article from us.

Name

Email Address

Friends

Bollywood News
Link building
Article submission service
Freelance Writers
Laser hair removal

We have been looking for freelance writers. Contact us

The `Credit Card Debt Termination` Scam by Charles J. Phelan

`Legally terminate credit card debt! You can be debt-free in 4-6
months!` Advertisements like this are for a new type of program
that has spread via the Internet over the past few years. It`s
called `Credit Card Debt Termination,` and victims are paying up
to $3,500 for this bogus service. In this article, I`ll review
the principles behind this program and explain exactly why it`s a
scam to be avoided.

First, let`s get our definitions straight. The scheme I`m
describing here should not be confused with Debt Consolidation or
Debt Settlement (also known as Debt Negotiation), both of which
are legitimate and ethical methods for debt resolution. The
easiest way to distinguish the Credit Card Debt Termination scam
from other valid programs is based on the central claim that you
really don`t owe any money!

With Debt Consolidation, you pay back all of your debt balances.
With Debt Settlement, you pay back a lower amount (usually around
50%) while the creditor agrees to forgive the remaining balance.
However, with the bogus Credit Card Debt Termination program,
promoters claim that you won`t need to pay anything at all
(except their outrageous fees, naturally). They make the
surprising claim that you can legally wipe away your debts simply
by using their super-duper magic documents. Based on some legal
mumbo-jumbo, the claim is made that you really didn`t borrow any
money from your creditors!

In order to understand this scam, a little background is
necessary. Remember the tax protest movement back in the 1970s?
People were claiming that the IRS tax collection system was
unconstitutional, and based on their misinterpretation of the tax
code, they refused to pay taxes. The IRS came down hard on the
tax protest movement, and through the court system, they blew
holes in all the legal arguments put forth by the protesters. The
Credit Card Debt Termination scam is a lot like the tax protest
movement. In fact, among collection professionals, it`s called
the `monetary protest movement.`

Just like the tax protest movement, there is a common theme that
runs through all of the promotional materials issued by the
monetary protestors. The basic idea is that our Federal Reserve
monetary system and generally accepted accounting principles
(GAAP) do not permit banks to loan out their own money.
Therefore, according to their interpretation, the credit card
banks are the ones running the scam on the American public.

Stay with me here, because the logic is pretty strange. If a bank
cannot lend its own money, how does a credit card bank extend
credit? The claim here is that your credit card agreement itself
becomes a form of money (known as a promissory note) the moment
you sign it. The idea is that the bank `deposits` your agreement
as an asset on their books, and then any credit you use is offset
as a liability against that asset. In other words, the core
concept here is that you literally borrowed your own money from
the credit card bank.

So let`s say your balance with ABC Credit Card Bank is $10,000,
which you borrowed against the card to make everyday purchases.
The scam promoters say all you need to do is notify the bank that
you want your original `deposit` back. However, you will permit
the bank to offset the amount you borrowed against the amount you
have on `deposit.` Presto! You don`t owe the balance anymore!

Now, as you can imagine, the banks don`t take kindly to such
tactics. Many of the consumers using this technique are getting
sued by their creditors. But the scammers have more tricks
available, as if the `smoke and mirrors` financial nonsense
wasn`t enough. One of their techniques is the use of bogus
`arbitration` forums. Arbitration is of course a legitimate
system that allows businesses and individuals to resolve disputes
without going to court. What do the scammers do? They coach
people on how to set up a fake arbitration forum, for the express
purpose of making a dispute against their creditors! Naturally,
the creditors will not send representatives to some non-existent
arbitration forum, so the consumer gets to rubber-stamp their own
arbitration award. If they get sued in a regular court, they
present their bogus award to the judge in the hopes that the
creditor`s lawsuit will be dismissed.

There are other techniques used by promoters of this scheme, but
the key point to remember is the central claim that your credit
card debt does not really exist. Of course, it`s all nonsense
based on a misinterpretation of our monetary system, and if you
step back and think about for a minute, the truth seems pretty
obvious. What these scammers are saying is that the entire $700
billion credit card industry is operating on an illegal basis!
Even if the legal theory used by the promoters were true (which
it isn`t), do you think for a moment the government would allow
this giant industry to go under? That`s exactly what would happen
if the promoter`s claims were proven true and used on a
widespread basis.

The Federal Trade Commission, which has jurisdiction here, hasn`t
stomped on these con artists yet, but it`s only a matter of time.
Unfortunately, in the meanwhile, consumers are being bilked out
of millions of dollars for a worthless program that will only get
them into deep trouble with their creditors. If you are
approached by someone offering to wipe away your debts using this
system, I strongly recommend you run in the other direction while
you hold on tightly to your wallet or purse.

Remember, you can eliminate your debts if you take a disciplined
approach to your finances, make a budget and stick to it, and
don`t use your credit cards unless you can pay off new balances
in full each month.

Good luck in your financial future!

Author Info:

Charles J. Phelan has been helping consumers become debt-free without bankruptcy since 1997. A former senior executive with one of the nation`s largest debt settlement firms, he teaches consumers a do-it-yourself method of debt negotiation & settlement. Expert training via audio-CD plus personal coaching helps debtors achieve professional results at a fraction of the cost. http://www.zipdebt.com/article2

Latest 20 articles

Hire the California Labor Board or California Labor Law Attorneys - You Decide With a downturn in the economy, many employers are cutting back on payroll. Unfortunately, some employers are reducing payroll costs by violating the California overtime laws. When this occurs, employees have essentially two options to recover their California overtime pay: the California labor board, or hiring California labor law attorneys. Although the California Labor Board is a commonly

Hiring a Car At Bangalore - Is More of Necessity Than A Luxury Your sedan is probably the best materialistic thing that you own and while going to a new place, that is what you ought to miss the most but if you are going to Bangalore then you probably have a option of getting a replacement so that you don’t miss it all that most because it will be as comfortable and as obedient as your own car and the Bangalor

How to Choose a Car Rental Company in Bangalore Bangalore is a place that lists one of the best as far as infrastructure is considered in India as it is the IT hub of India and thus the roads to drive is atmost pleasure and thus if Bangalore is the destination that you are planning for next then the best way to move around is by hiring a car. To hire is car is very simple if it is in Bangalore because there are some very good car rental compani

Car Rental Companies in Bangalore If you are travelling to Bangalore and hiring a car is what worrying you then you can be relaxed because this is one service that you will easily get in Bangalore and that too at very affordable and economic prices. Basically there are really good car rental companies in Bangalore available for renting the cars and you can either book in advance or go there and hire a car for yourself. Also, you h

Tips to Hire a Car in Bangalore One thing that most of us agree is that the fact that the most comfortable way to move around at any place is by your own vehicle but what if you are going to a new place, it is not possible to carry your vehicle along with you and you actually cannot trust too much on the public transportation system and at such situation the best possible option is to hire a car for yourself, at some places it c

Hire a Car: Comfortable Way to explore Bangalore If you are out to a new place than the first thing that comes into your mind is a comfortable accommodation and then the second one on the priority list is a comfortable way to move around in the city and if Bangalore is your preferred location, than you’ll be having options for both of the facilities, but if we specifically speak about the second one that is moving comfortably than the best opti

Car Rental – A convenient mode of transport in Bangalore Bangalore, a place which probably is considered one of the best places in India as far as infrastructure is considered and reasons are many for that, one is because of the IT hub that it is and also because it is one of very good places if you are considering holidays and because of this very good facility provided for the people visiting Bangalore is that you have many options in case if you are

Rent a Car in Bangalore: Take the Right Decision In today’s world, time is money; the more you save it better it is for you. And in that case if you are going to another place where you are not too familiar with the surroundings, then instead of wasting time on travelling by locating and travelling by public transport is to hire a vehicle for yourself. This helps in many ways, one it saves on time and also it moves at your pace so you don’t have

Bangalore Car Rental: Save Your Time When you are at an unknown place or for that matter known place and time is your major factor of concern then, the best way to save on time is by having your own vehicle for conveyance. This gives you freedom to move at your own pace and wish. And for that matter if you are at a place like Bangalore where the roads are so beautiful that it is a sheer pleasure to travel through your own rented vehi

Best Package Tours to Kerala Kerala – God’s own country which means heaven for those who appreciate the real untouched, naïve beauty of nature and if you are one of those than consider Kerala as the option for you next holiday. Kerala gives an option to explore the nature to the fullest because it has all the places where you can explore the nature be it scenic beaches or the hill stations or the ethnic culture, just everythi

Kerala Tour: A Getaway from Regular Stress If you are tired of daily stress and meetings and looking for a getaway so that you snatch some time for yourself with your loved one’s than Kerala holidays is the perfect is the perfect thing for you. Its calmness and closeness to nature would give you that much needed peace of mind that you always wanted. Also along with enjoying the beauty of this scenic place on your holidays to Kerala you can

Kerala Tour Packages: Have A Look If holidays are on your mind, then Kerala is one option that you cannot choose to neglect. Because Kerala is one place that offers you all from calm and serene natural places to exciting sports to exotic beaches and also beautiful hill stations, everything provided at one place which is also known as god’s own country. And obviously such wide range of activities would make it a tough job to cover

Kerala Holidays: Places To Visit Kerala also known as God’s own country, the name itself is synonymous with heavenly experience and to see this heavenly place all you have to do is pack your bags and head straight away to Kerala. Kerala is a place of multiple opportunities of which you can select the ones that interest you the most and design your own package for your Kerala tour. You can come to Kerala for various reasons and th

An Overview to Kerala Tourism Life’s a journey and to keep moving there are occasional breaks that you need to take and if you are looking for one of those breaks than Kerala holidays is one place that is your answer. Be it a family vacation or honeymoon tour or just a getaway with friends, this is one place that provides with ample opportunities for every kind of vacation. In fact there is so much to do and see that you will

Kerala : Popular Travel Destinations Kerala holidays is one thing that you should treat yourself and your family at least once and once you go to Kerala, you’ll have that craving to go back again and again, such is the charm of god’s own country that is Kerala. To give you a glimpse of what all Kerala have to offer to its visitors, let’s start with the most famous tourist hot spot i.e. Munnar, a place which is famous for its tree and

Kerala : Welcome To GOD’S Own Country If serene and calm beauty of nature is what’s on your mind then, Kerala is just the place you are looking for. It is so pristine and pure that it is called God’s own country. Greenery spread everywhere till your eyes can see; picturesque views, fog in the morning etc. are some of the first things you will notice when you step in Kerala. Kerala Tou

A California Labor Law Attorney: Just What You Need in Times of Trouble! In a time where California labor law is constantly changing and employers are playing it “fast and loose” in order to make ends meet, a California labor law attorney may be just what the doctor ordered to explain the complex California overtime laws. With a weakening economy, and jobs being shipped overseas, it is not uncommon to see rampant abuse of the California overtime laws. Employers r

Tax Debt Help Needed - How Can I Stop an IRS Bank Levy? The IRS does give you ample warning that they intend to levy your bank account. You undoubtedly received the notice and demand for payment from the IRS which included the amount you owed in back taxes. You probably did not contact the IRS at that time, and that was very important. The next communication you received was called the “Final Notice” which did express their Intent to Levy and also inc

California Labor Laws: Asserting Your Employee Rights Many employees when experiencing a labor violation are confused as to where to turn and typically take one of four paths. 1. A very common path and usually the most treacherous, is doing nothing at all. When an employee is hesitant to hire California overtime lawyers or California labor law attorneys to handle a situation, it usually gets worse before it gets better. Complacency will typicall

California Overtime Laws: Top 4 Common Employer Mistakes A California labor law attorney has revealed the four most common mistakes that employers make in violation of California overtime laws. Although California labor laws for breaks and lunches are clear, nevertheless employers tend to overlook something as simple as giving their employees a meal or rest break. While this is only one of our top three violations, it is often the most overlooked.