CREDITORS FORGIVE DEBTS FOR SMART CONSUMERS

Consumers with the right information can force creditors and debt collectors into "non-payment" settlement agreements. Why? Because it can be proven by the bank's own accounting records that it lent nothing to the customer, but created money from the customer's promise to pay. This makes the customer the lender, according to the Federal Reserve Bank of Chicago, and entitled to have his "unpaid debt" reduced by the value of the greatest credit limit.

The best kept secret in the banking and credit card business is that banks do not lend anything. When interviewed, several certified public accountants agreed that In a typical checking account, the check writers account is debited and the sellers account is credited, but in a loan or credit account, no accounts are debited but the customers account is credited in the amount of the approved credit limit. The bank creates the money from nothing, making the customer the lender."

The Federal Reserve Bank of Chicago says ... a depositor's balance also rises when the depository institution extends credit-either by granting a loan to or buying securities from the depositor. In exchange for the note or security, the lending or investing institution credits the depositor's account or gives a check that can be deposited at yet another depository institution. In this case, no one else loses a deposit. The total of currency and checkable deposits-the money supply-is increased. New money has been brought into existence by expansion of depository institution credit.."

John Gliha, author of Winning The Collection Game, has figured out a way to bring these facts into the negotiating process for consumers, thereby giving them a huge advantage toward reaching what he calls ...a non-payment settlement agreement." The greatest part is that the banks keep their profit through normal fees and interest, the merchant is paid for goods and services sold and while the customer does not get any refund, the value of the credit limit is subtracted from the credit balance to cancel the debt without payment. Winning The Collection Game is published by Due Process via its website, www.dueprocess.org.

-30-