by Carol Ann F. Maloney

Created on: October 18, 2009   Last Updated: December 27, 2010

Credit card debt can be eliminated without paying a dime if you know the truths necessary to free yourself from the deceptions that indoctrinate you to believe you are in debt when bankers cannot prove a money loss (debt).

The first thing you need to know is that banks loan by creating credit. with a bookkeeping entry.  Bankers create the means of payment for your transactions out of nothing according to Ralph Hawtrey, a member of the British Treasury.  Bankers cannot prove a money loss (debt ) because they use bank credit for money when it is not money.

 The second thing you need to know is that if you settle for 50% of a credit account debt, the rest will be reported to the IRS as income and you will have to pay taxes on it.  So don't fall for scams that offer to reduce your debt.  They buy the account from bankers at 10% to 30% on the dollar  and collect the balance from you, leaving you with a tax debt and payments to them.

The third thing you need to know is  The Fair Debt Collection Practices Act provides that if you dispute the debt,  they must stop collection activities until they prove the debt, (money loss) which they cannot..

The fourth thing you need to know is The Fair Debt Reporting Act makes it unlawful for  Bankers and Collection Agencies to report disputed debts on your credit report until they are proved.

The fifth thing you need to know is The Credit Card Accountability Responsibility and Disclosure Act, makes it unlawful to charge interest on interest (double cycle billing) or  raise your interest rate if you have late payments on any other bank loan (universal default).

The sixth thing you need to know is that the Courts have ruled it is unlawful for a bank to loan its credit and contracts made for bank-credit loans  cannot lawfully be made or enforced by either party.

 Get a free credit report with The Annual Credit Report Request Form at http://www.ftc.gov/bcp/edu/resources/forms/requestfo rmfinal.pdf  and send a letter  to the addresses of all the  reporting companies, disputing the debts and informing them of the  six  things you know that establishes your legal position.

Send a letter to the Credit Reporting Companies listing the alleged debts you have disputed and demand they be removed from the report until proved or the credit reporting company will be in violation of the Fair Debt Reporting Act and subject to suit.

Now read what the

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