by David K. Randall
Friday, September 25, 2009provided by
Banks are cutting overdraft fees, but there are other hidden charges.
In the wake of the uproar over bank fees charged to debit card holders–and the looming threat of congressional action–banking giants Bank of America, JPMorgan Chase, and Wells Fargo have announced drastic changes to their overdraft policies.
What banking customers might be missing is that debit card overdraft fees are the tip of the iceberg. Banks nickel and dime their customers in numerous other ways that can easily cost the average person $100 or more per year. Adding insult, many of the fees are poorly disclosed and
levied regardless of any action the customer does–or doesn’t–take.
“There is a long list of fees that people pay that doesn’t require any type of acknowledgment on the part of the consumer,” said Greg McBride, a senior financial analyst at Bankrate.com. Here are five major areas of hidden bank revenues.
Balance Transfer Fees
Banks commonly mail out ads pitching low interest rates for customers willing to transfer credit card balances from another institution. What many don’t advertise is that there is often a balance transfer fee of between 3% and 5% hidden in the fine print.
“If you’re transferring a balance from a card with a rate of 15% to a card with a rate or 13%, but you’re paying a 3% admission fee, you’re not saving any money,” McBride said. Moving a balance of $5,000 from one credit card to another with a slightly lower interest rate could result in a $150 charge being added to the balance that you owe and pay interest on.
If you’re thinking about switching to a card with a lower interest rate, ask the bank what type of transfer fees it charges. These fees are separate from the annual interest rate that you pay.
Cash Advances
Consumers who take cash advances from their credit cards will also be hit with a transaction fee that they might not have been expecting. As with balance transfers, cash advances often come with a fee that ranges between 3% and 5%. That’s not all.
“If cash advances weren’t costly enough with interest rates in the high teens, there’s no grace period, and the interest clock starts ticking right away,” McBride said.
Foreign Currency Surcharges
Using a debit or credit card while traveling overseas is wonderfully convenient. Perhaps too convenient. Over the past few years, banks have commonly started charging a 3% fee for any purchases made in foreign currencies. That means if you go to Paris on vacation and buy presents in euros, the charges will show up on your statement in dollars–with the 3% fees built in.
If you plan to use a debit or credit card abroad, consider opening an account with Capital One or Charles Schwab, whose foreign currency exchange fees run as low as 1%. If you are going to be taking money out of an ATM in another country (another place where banks ring up additional charges), Wells Fargo and PNC offer some of the lowest fees.
Balance Requirements
Many banks offer to waive monthly service fees on checking or savings accounts if customers maintain a collective balance above a set minimum. Dip below it, and you could be hit with a charge of $8 or more every time your balance falls below the minimum.
“These requirements are really a lose-lose proposition,” McBride says. “If you don’t maintain the balance, you get socked with a fee. If you do maintain it, you have the opportunity costs of stranding money in a low-yielding account when you could be earning a more competitive return in an online savings account.”
ATM Fees
Bank of America and other banks now charge customers from other banks $3 to withdraw money from its ATMs. But at least you have to agree to pay the fee at the terminal. What some customers may not realize that is that their own bank often levies a $2 fee every time they use a competitor’s ATM as well. Adding up all the bank fees, it may cost $5 to take out $20 of your own money. That’s a 25% commission, and the bank didn’t have to do a thing.
Did you know that it is easy for your bank to “freeze” your funds?In other words, to simply take your money away from you?It’s sad, but true.There are some facts you need to know.
The Exempt Income Protection Act took effect on January 1, 2009.Under this new law, a bank served with a restraining notice or levy is under no obligation to determine whether any funds in their customer’s account are exempt from the reach of creditors, such as Social Security funds.
Many banks have frozen accounts even when it appeared that the account only held exempt funds, which is clearly illegal.Could this happen to you?Here are some examples.
• Banks are prohibited from freezing $2,500 in an account that receives direct deposit or electronic payments of social security payments.
• Banks are prohibited from freezing $1,740 in an account which represents exempt wages.
• Banks may charge a fee to a depositor whose funds they freeze.
• Creditors/Banks must provide a notice and two copies of an exemption claim form (along with a copy of the restraining notice or levy) to a depositor who is the subject of a restraint or levy, and to follow specific procedures if a customer claims that funds are exempt.
MANY BANKS DO NOT FOLLOW THESE REGULATIONS
So what are the banks supposedto do?
When they are served with a restraining notice or levy, a bank is supposed to check the account to see if there was a direct deposit or electronic payment of exempt funds within the preceding 45 days.If there was such a deposit, and the account has more than $2,500, they are only supposed to freeze the amount over $2,500; but if there is $2,500 or less is in the account, they are not supposed to freeze anything.
BUT THEY DO
Also, if the customer has more than one account that has exempt funds then each account is supposed to have the $2,500 protection.So what are these “exempt funds”?They include social security benefits, SSI, child support payments processed and received through the Social Security Act, VA benefits, public assistance, workers’ compensation payments, unemployment insurance, public or private pensions, railroad retirement funds and black lung benefits.
WE HAVE SEEN VIOLATIONS OF ALL OF THESE
The law says that a rule of reason should apply. If the source of the funds indicates that the money is exempt (such as a social security code), a bank will likely be deemed on notice. However, if there is no such code or other indication that the funds are exempt, a bank does not have to do extensive research to determine if an exemption applies.They can simply freeze your funds.
The law provided a formula for calculating the exempt wage amount based on the minimum wage under both state and federal law, but for convenience purposes the law sets forth a specific amount that banks can rely on:$1,740 (as of July 24, 2009).If the customer has more than that, the amount over it is subject to being frozen.There is no “double” exemption for the $2,500 and the $1,740.
If you have more than one account, neither of which holds ONLY exempt funds, then you are only protected only up to the $1740 even if you have multiple accounts. In other words, if you have two accounts with each account containing a balance of $2,000, the total protection is $1,740 (not $1,740 for each account).
BANKS CAN FREEZE YOUR FUNDS REPEATEDLY… UP TO TWICE A YEAR PER CREDITOR
Banks are required to provide notices to their customers (natural persons only) who are the subject of a restraint or levy.They must then follow specific procedures and time frames that vary based on whether a customer claims an exemption.It is up to you to fight back if the money in your accounts contain exempt funds.
The banks must act quickly.Within 2 business days of their receiving a restraining notice or levy, the creditor has to send you a copy of the restraining notice or levy, the exemption notice and the two exemption claim forms. These must be sent by first class mail to your last known address.
TIME AND AGAIN, WE HAVE SEEN THIS VIOLATED
You are allowed 20 days to complete and return the exemption claim forms to the bank and judgment creditor. If you give the bank an exemption claim form, it is supposed to notify the creditor about when and how much of your funds will be given to them. The bank can then release all of the eligible funds in your account 8 days later.
HOW CAN YOU PROTECT YOURSELF?
The Asset Protector Group, LLC. has a plan.And it works.For more than 5 years, we have been assisting our clients not only to protect their bank accounts from seizure, but also protecting them from their creditors.From simple procedures like safeguarding your bank accounts, to more complex ones such as preventing your creditors from garnishing your wages, our “system” has worked for thousands of people with the same needs that you have.Even further, APG’s DebtSol® program has aided many in settling their debts for as little as 10% of the amounts owed.
Protecting yourself from the predatory practices of the banks and creditors is almost mandatory these days.With average credit card interest rates now at 23% and savings all but disappearing, APG’s “Shielded Circle” of protection is available to you as well.
Within 6 weeks of joining the program, your initial protection will be in place.After 60 - 90 days, your creditors will not be able to freeze your banks accounts or garnish your wages.You will no longer be required to pay any unsecured debt you do not choose to pay.At the same time, we will begin cleaning your credit report.Your creditors will quickly realize that your account is uncollectable.At that time, if you wish, our legal team will negotiate a debt settlement; not for 40% or 50%… but for as little as 10% of what you owe.
Our staff of licensed attorneys continually upgrades our program keeping not one but several steps ahead of the banks and creditors.We’ve learned how to “zig” when they “zag”.You do not need to be bullied by the hordes of bill collectors.Our “system” can protect you and resolve your debt problems to meet your needs and to benefit you.Learning how we do it costs you nothing.Download our no-charge eBook to learn more about how you got yourself into this financial mess.Then call us to learn how to get yourself out of it.
You have heard all you can about AIG.You have heard all you can concerning the “who done it” syndrome in Washington.There is a lot of figure pointing and accusing of the next guy happening on the Hill.
Have the convulsion of all these messes from our lawmakers and government leaders created a thick fog?In this thick fog, they seem to have forgotten about the people whom they are supposed to be helping.They have become so enthralled with creating a tax to penalize executives who have been given huge bonuses (and their employers bailout money to boot), that you have not heard about any progress in helping those taxpayers and homeowners who need attention right now.
The Asset Protector Group has heard the cries of the homeowners.We not only heard the cries, we have done something about it.
Over the past five years our focus has been on educating the consumer on unsecured debt and how the banks create money through the creation of debt (www. Apg-llc.us), and what to do about it.As we forge ahead in that market, we have also taken note of all the foreclosure filings and the changing and growing needs of consumers.
After performing our due diligence on this subject, analyzing the numbers, the causes and the possible solutions, we have developed a system to provide the assistance needed to those who are facing these challenges today.
It’s common knowledge that the amount of homeowners either already in trouble with their mortgage or facing an ultimate disaster is of massive proportion.The reasons that have catapulted this mortgage meltdown come in all shapes and sizes, most of which are not directly the fault of the American citizens who go to work every day, earning incomes to provide food and shelter for their families.
There is, however, a percentage of homeowners who have had to deal with an unexpected tragedy or death in the family.This percentage is not of great proportion.There should be an automatic re-write provision in mortgage contracts for these unfortunate people, but there is not.
The bulk of the cause that created this mortgage turmoil lies with big business and greed.In the 1980’s the financial guru’s of our great nation were pressured to figure out a way to bolster homeownership.They did just that, creating mortgage programs which put the buyers at a huge risk.These programs, such as the two year ARM, and GPM’s (Graduated Payment Mortgage) were not created with the prospective buyer in mind; they were created to make more money for the banks. It is that simple.Their thinking, that jobs were secure and that those incomes would continue to rise, was irresponsible at best.They maintained a get it while you can attitude and deal with the fallout later - if it ever comes.
Well, guess what?That time is now, and it’s time to deal with the fallout those programs created.The challenge is that the programs they so meticulously invented are totally restrictive in nature, and they are not helping.
The Asset Protector Group has assembled a team of mortgage industry experts who have been helping homeowners for over 25 years.We are currently working with homeowners who need to have their mortgages re-written to provide a lower payment through reduced interest or re-amortization before they, too, are a number in the foreclosure filing statistics.
Let us show you how we can help in this time of need. Call one of our team at 727-374-4472, or go to our web site at www.debt-negotiation-apg.com.We are standing by to help.
Investing these days has become quite tricky, even treacherous! There is, however, one firm who is recommending a great investment.
The Asset Protector Group is an organization/community of professionals who are dedicated to helping consumers and homeowners invest in themselves. We do it through using legal means to settle your debts for 10% of the supposed balance. We do it through our DebtSol® System and negotiation with the lenders and banks that have put you in a situation of financial ruin.
Our programs allow you to invest in yourself through increased income without taking a second job. Our attorney written and supervised program can and will guide you to financial freedom (www.apg-llc.us).
Not only will we handle those creditors and banks that have issued all those cards in your wallet or purse and are charging you outrageous fees and interest rates, but we can re-negotiate the terms of your mortgage with your lender as well.
There are bad investments all around us on a daily basis. The government seems to have a pretty good handle on bad investments as of late. They are spending $3.6 trillion dollars in the near future on programs we can only hope will help. Oh, by the way, that comes to about $25,573 dollars for each of our 139 million taxpayers. That’s ok. Just put it on my bill, or better yet put it on my kids’ bill.
Citigroup, for those who do not know, is the nation’s largest banking institution. Chances are if you have a credit card or a mortgage, Citigroup is playing a part. Citigroup has been touted as the world’s worst investment.
Former Treasury Secretary, Hank Paulson, made a terrible investment on behalf John Q Public. He purchased 7.8% stake in Citigroup for $25 billion dollars. Then he added guarantee’s against 90% of future losses on $301 billion dollars in assets. Subsequently, we (taxpayer) injected another $20 billion dollars. So, for paying for about 100% of the market value for Citi, we got less than 1/10th of a company that was worth 1/5th of our investment.
Pretty good deal, eh?
That $45 billion dollar stake has a market value of just over ONE billion today. And, it’s about to get worse. The Treasury Department has agreed to convert $25 billion of its preferred stock investment into common stock at Citi. This means the taxpayer’s stake will rise to near 40% of Citigroup.
It’s just another example of why these insolvent banks should be nationalized or FDIC Mandated, pre-packaged chapter 11, government funded reorganizations.
Let’s keep it simple. The Asset Protector Group has the expertise, experience and the dedicated professionals it takes to get the job done.
Visit one of our web sites, make an investment in YOU!
Go to http://www.apg-llc.us for information on how to find your financial freedom from credit card debt.
Go to http://www.debt-negotiation-apg.com and get answers on how to get that mortgage payment re-negotiated into something you can afford and save your house.
We have all read the various newspaper accounts and watched the news channels enough to know that the timing for all these programs is not immediate. It will take time and lots of it before the average homeowner gets any relief.
The Asset Protector Group understands that we don’t have time to wait. We need relief NOW! We not only understand but we have taken steps to help. Our Mortgage Negotiation Division is standing by to offer meaningful help today.
The new Treasury Secretary Geithner says that the government is prepared to borrow $3 to $4 trillion to put into banks, stimulus, and government debt purchases. This would add up to 4 trillion to our already astounding $10.6 trillion government debt.
Can the solution to a system with too much debt and leverage possibly be massive amounts of more debt and greater leverage?
Economic recovery remains hindered by continued problems in the housing and mortgage markets. There are currently widespread payment problems in every category of mortgages. It reflects the fact that reduced home equity and tighter mortgage credit qualifications have impaired the borrowers’ abilities to refinance their mortgages in order to cope with income loss, unexpected expenses, or adverse life events. Elizabeth Duke, the Federal Reserve Governor, recently said that 25% of subprime loans and 13% of near-prime loans are now seriously delinquent. That means they are over 90 days past due or are in foreclosure. There were more than 2.25 million foreclosures initiated in 2008, more than twice the number in 2006.
Don’t wait until you become one of these statistics. Contact the Asset Protector Group today to get payment relief that you need.
Go to our website, www.debt-negotiation-apg.com and send an email, or just call 727-375-4472 to speak with one of our professionals.
Did someone make a mistake on your mortgage documents? You mortgage note is a contract and by law must be error free.
The Mortgage Bankers Association recently released a report on mortgage fraud. It apparently is a pre-emptive strike against congress and various state legislatures to block passage of any legislation they find inappropriate.
The Asset Protector Group knows that any error and misleading information or disclosure is inappropriate.
The Mortgage Bankers Association defines mortgage fraud as the “intentional enticement of a financial entity to make, buy, or insure a mortgage loan it would not otherwise have done had it possessed the correct information”.
That’s a mouthful isn’t it? Did you provide all the information to your mortgage professional to the best of your ability and then find out that you qualified when you didn’t think you would?
What about a broker who for obvious reasons sharpened his pencil in the income or debt servicing sections of the application? Both instances way heavily in the qualification process of a mortgage. Now, you are faced with a payment that has put you in peril and your real income can’t support it.
Is that fraud? You bet it is, and the Asset Protector Group can help. At no charge to you, we will review your documents and be sure the lender at the time of application had the accurate information to make a loan decision. If and when we find an error, we will negotiate on your behalf for a new set of terms to force that payment to be within your realistic budget.
Other forms of fraud for profit are when the motive is to “resolve equity, falsely inflate the value of the property, or issue loans on fictitious properties”.
The thrust of the Mortgage Bankers Association’s report is that there is no reason for additional federal laws to combat mortgage fraud. The existing laws already provide adequate law enforcement to prosecute the crime, and any new steps taken by the government to punish mortgage fraud would expose mortgage lenders to additional risks of loss.
Mortgage fraud and predatory lending practices are two major components of how this whole mortgage meltdown got started in the first place.
They don’t want any new laws cracking down on fraud but not because there are enough laws to protect the consumer, which should be the priority. It is because it would cost the BANKS too much money and put them at more risk.
What about the consumer who was just trying to buy a home for his family?
The Asset Protector Group has a team of mortgage experts to deal with the banks. We will negotiate the terms of your now un-affordable mortgage into something that makes sense.
Don’t lose your home because of someone’s need to close a deal and gain a commission. Let APG help negotiate those payments and terms for you.
The House of Representatives will be voting on a bill Thursday that would help homeowners get payment relief on their mortgages.
The bill would allow debt-strapped homeowners to file bankruptcy to force reductions in their mortgages payments.
Now doesn’t that sound great!
The Asset Protector Group has a better way. We don’t want to see hardworking Americans be forced to file bankruptcy just to gain payment relief on their mortgage. We can show you how to get that payment relief you need without having to file for a bankruptcy and charring your credit.
The bill has been diluted somewhat from its original draft. Lobbyist for the mortgage industry spent 4.2 million dollars last year working to lessen the cost they say the bill would impose on its member banks.
Another hurdle for the homeowner to overcome is “qualifying”. I don’t mean qualifying for a new mortgage, I mean qualifying for the BANKRUPTCY! The banks have been successful in getting language in the bill to the effect of “only applies to”, and “is limited to”. The bill is chock full of parameters such as only for certain kinds of loans, certain sizes of loans, or certain borrowers to name a few.
The Asset Protector Group and its staff of mortgage professionals doesn’t care what type of loan you have, what size it may be, or what kind of borrower you are. If you need payment relief, for whatever reason, we will help you get it.
Members of the House agreed this week to up the requirements that a borrower must show proof that they have exhausted all other means of getting their payments reduced.
Who is going to measure “exhausted all other means” of mortgage modification?
The Asset Protector Group is an organization who is dedicated to helping consumers with their debt and payment issues. Over the past five years our DebtSol program and Shielded Circle of protection has helped thousands of Americans with their unsecured consumer debt (www-apg-llc.us). Now we have expanded our services to include re-negotiation of payments and terms of your mortgage. Our staff will deal with your lender whether it’s a local bank or a big bank. We have the expertise to get that payment relief you and your family deserve.
Remember that continuing to pay when it is inevitable that you will not be able to continue paying in the amounts demanded by the creditors is just wasting money, you will not protect your credit and you will lose your cash and buying power.
It is important that you understand that you can pay everybody, some people or nobody. Determine who you will pay and how you will legally deal with creditors that you can’t pay.
The first thing you should determine is whether the business you are dealing with is the original creditor or a collection agency. Since these two types of creditors are regulated differently, you’ll need to know the right laws for each, and which agencies to contact if you have problems with their collection methods.
Original Creditors
The doctor, department store, credit card company or bank with whom you originally signed an agreement is the original creditor. If the debt is still with that business, then that is with whom you are going to work.
Original creditors must comply with state law when collecting a debt. While most states’ laws closely mirror federal law, each state has slight legal variances. You can contact your state Attorney General’s office to learn the exact law for where you live.
The collection practices of original creditors are often less confrontational than those of collection agencies. This makes sense, since it is in the company’s best interest to maintain a positive business relationship with you, particularly if you are a long-time customer. If you are unhappy with their collection practices and believe they have overstepped their legal boundaries, speak up! Contact them and explain why you are displeased and that you want the action to stop. If they continue to break the law, however, report them to the Better Business Bureau and your state’s Attorney General’s office.
Collection Company
A collection agency or third party collector is someone an original creditor uses to collect the original creditor’s debt. Under the Fair Debt Collection Practices Act, a collection agency or third party collector also includes:
· An original creditor that collects its debts under a different name or by sending letters signed by lawyers.
· A lawyer who regularly collects debts owed to others. See Heintz v Jenkins 115 S Ct 1489 (1995)
· Any company that purchases debts for the purpose of collecting them
· The original creditor if it re-acquires the debt.
Your Legal Defense
The Fair Debt Collection Practices Act (FDCPA) is the basis of your defense against nearly every unsecured collection instituted by a third party (assignee) debt collector. The complete text can be found in the Asset Protector Group Resource library. There are a number of guidelines that debt collectors must follow, and you should familiarize yourself with them.
The Federal Trade Commission is a great source of information for identifying abuses within the collection industry. There are many. Part of the reason is that collectors in general have policies that routinely violate or allow these violations. A few abusive collection attempts are not isolated and we’ve included an example list reported by the Federal Trade Commission so you can better understand that you are not alone. You will be able to find the list in the Asset Protection Group Resource Library.
The Act prohibits certain types of “abusive and deceptive” conduct when attempting to collect debts, including the following:
* Hours for phone contact: contacting consumers by telephone outside of the hours of 8:00 a.m. to 9:00 p.m. local time
* Contact after being asked to stop: contacting consumers in any way (other than litigation) after receiving written notice that said consumer wishes no further contact or refuses to pay the alleged debt, with certain exceptions, including advising that collection efforts are being terminated or that the collector intends to file a lawsuit or pursue other remedies where permitted
* Contacting consumers at their place of employment after having been told verbally or in writing that this is not acceptable
* Contacting consumer known to be represented by an attorney
* Contacting consumer after request for validation: contacting the consumer or the pursuing collection efforts by the debt collector after receipt of a consumer’s written request for verification of a debt (or for the name and address of the original creditor on a debt) and before the debt collector mails the consumer the requested verification or original creditor’s name and address
* Misrepresentation or deceit: misrepresenting the debt or using deception to collect the debt, including a debt collector’s misrepresentation that he or she is an attorney or law enforcement officer
* Publishing the consumer’s name or address on a “bad debt” list
* Seeking unjustified amounts, which would include demanding any amounts not permitted under an applicable contract or as provided under applicable law
* Threatening arrest or legal action that is either not permitted or not actually contemplated
* Abusive or profane language used in the course of communication related to the debt
* Contact with third parties: revealing or discussing the nature of debts with third parties (other than the consumer’s spouse or attorney) or threatening such action
* Contact by embarrassing media, such as communicating with a consumer regarding a debt by post card, or using any language or symbol, other than the debt collector’s address, on any envelope when communicating with a consumer by use of the mails or by telegram, except that a debt collector may use his business name if such name does not indicate that he is in the debt collection business
* Reporting false information on a consumer’s credit report or threatening to do so in the process of collection
For many people, the cold call from the bill collector is an intimidating and even humiliating experience. They are unprepared to deal with collectors, who are trained to handle every type of response. Relentlessly assertive, collectors focus on “the close” — your commitment to pay.
The less knowledgeable you are about your rights, the more confident a collector becomes; the more worried you are, the less concerned the collector becomes. Collectors know that it’s easier to manipulate a conscientious debtor into a payment plan that benefits the collector, not the debtor.
Bill Collector’s Secrets
You’ll be in a better position to resist collectors’ pressures, and negotiate a sensible repayment plan
if you’re prepared for the tactics they’re likely to use. Here, then, are secrets that bill collectors don’t want you to know.
* Collectors get commissions — usually 30 to 50% — on money they bring in, which often double or triple their salaries. This means they have a strong incentive to press for a big “down payment” from you, even if this deepens the cycle of debt. Collectors hoping for a big commission may claim that the boss insists on a big down payment. In fact, blaming it on a mythical manager is designed to deflect your anger away from the collector.
* Payment Deadlines Are Phony Payment deadlines set by collectors are meaningless. Collectors simply want to create a sense of urgency, because the longer it takes to get you to pay, the less chance there is of collecting the debt.
* They Don’t Need a ‘Financial Statement’ Collectors often claim they need a “financial statement” from you, so they can work out a realistic repayment plan. You’ll notice, though, that the information they ask for — bank account numbers, references, place of employment — is far more than they need for that purpose. They’re fishing for information that will help them find you if you move or sue you if you don’t repay the debt.
* The Threats Are Inflated Collectors always graphically detail the disastrous consequences of failing to pay a debt. “Your credit rating will be ruined,” they warn. (Not mentioning that it’s probably already not so good, since a collection company is after you.) “Your personal possessions, including your car, could be seized and sold at a public auction!” (Never mind that this virtually never happens; it’s illegal in some states and impractical because of the expense.) Probably 95% of the time, collectors go after only bank accounts and wages.
* You Can Stop Their Calls You have the right, under federal law, to tell a collection agency to stop contacting you. Just do it in writing, and contacts must stop, unless they’re to tell you that collection efforts have ended or the agency is going to take a specific action (like filing a lawsuit) against you.
* They Can Find Out How Much You Have in the Bank A collector who has your bank account and social security numbers can probably easily find out the balance of the account. Because big banks now have automated account inquiry systems, the collector doesn’t even have to speak to a human being; all it takes is a phone call to the automated voice-mail service. When the account number and social security numbers are punched in, the computer promptly supplies an up-to-the-minute account balance.
* If You’re Out of State, They’re Out of Luck Collection agencies routinely call out-of-state debtors to demand payment. But if a creditor has sued you and won, you are probably safe from enforcement action if you bank and work outside the state where the lawsuit was filed. That’s because to collect, the collection agency must transfer the judgment to your state, which is prohibitively time-consuming and expensive.
* They Can’t Take It All Certain income, such as social security, pensions and 75% of your take-home pay, is exempt from enforcement action. You can file a claim of exemption from a garnishment of the other 25% of your wages if it would cause you or your family severe hardship.
They May Not Know a Thing
* Sometimes a collection agency lawyer, trying to collect a judgment debt, sends questions on a court form asking about your income and assets. (These are called “post-judgment interrogatories” or “information subpoenas.”) This is good news for you — it means that the agency has no information and is hoping you will be intimidated enough by this legal questionnaire to complete it. Many people do, because the forms list sanctions, such as fines, for not doing so. But normally, it is too expensive and time-consuming for an agency to go to court and force compliance.
Remember that continuing to pay when it is inevitable that you will not be able to continue paying in the amounts demanded by the creditors is just wasting money, you will not protect your credit and you will lose your cash and buying power. And remember that we don’t have debtor’s prison anymore.
Now that you know what they can’t do…how about what you can do.
Federal Reserve Private Corporation or Government Agency?
Federal Reserve Private Corporation or Government Agency?
“I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs. “
Thomas Jefferson (1743 - 1826), Letter to the Secretary of the Treasury Albert Gallatin (1802)
The Federal Reserve are the people that print and regulate your money. Don’t you think you should know who they are?
People like you create more than 95% of the money today by signing a piece of paper promising to pay back the bank for money that the bank never had to lend. Once upon a time when we were on the gold standard, we could only print money that equaled the amount of gold that the government had to back it up. Moreover, when we needed more money, we had to mine more gold. That is not true today. If you look on a dollar bill you will see that it says “Federal Reserve Note” and “This note is legal tender for all debts public and private”.
Now you are confused, right? What exactly does Federal Reserve mean? Some people say that they are a private corporation …
“The ‘Federal Reserve’ is not a government institution but a private central bank owned by a handful of major banks and bond dealers. As such, it is a cartel owned, controlled, and essentially for-profit driven, not by the people of the United States but, instead, by the banking industry’s ruling elite. This oligarchic setup generates the most costly, debt-based, money system and greatest conflicts of interest in the history of the world. It is a system clearly at odds with the intent of the founders of the United States of America.”
But The Federal Reserve says that they are not private…they state it on their website…
The Federal Reserve System is not “owned” by anyone and is not a private, profit-making institution. Instead, it is an independent entity within the government, having both public purposes and private aspects.
So we went to a court decision to find out what the legal definition is:
John L. Lewis, Plaintiff/Appellant,
v.
United States of America, Defendant/Appellee.
No. 80-5905
United States Court of Appeals, Ninth Circuit.
Submitted March 2, 1982.
Decided April 19, 1982.
As Amended June 24, 1982.
Plaintiff, who was injured by vehicle owned and operated by a federal reserve bank, brought action alleging jurisdiction under the Federal Tort Claims Act. The United States District Court for the Central District of California, David W. Williams, J., dismissed holding that federal reserve bank was not a federal agency within meaning of Act and that the court therefore lacked subject-matter jurisdiction. Appeal was taken. The Court of Appeals, Poole, Circuit Judge, held that federal reserve banks are not federal instrumentalities for purposes of the Act, but are independent, privately owned and locally controlled corporations.
We now know that money is printed by an independent, privately owned corporation called the Central Bank or the Federal Reserve. We also know that it is created out of thin air when you obtain a loan for a mortgage, car or credit card. They will then take your promise to pay to the Central Bank and they will get 9 times the money you borrowed to lend to other people who believe that it exists. What a scam!!
Tinkerbell and Your Money
Wednesday, February 25th, 2009
Where do banks get all that money?
They create it out of thin air. It exists only because you believe that it exists. This is called the Tinkerbell effect.
“The Tinkerbell effect describes those things that exist only because people believe in them. The effect is named for Tinker Bell, the fairy in the play Peter Pan who is revived from near death by the belief of the audience. The effect includes the Rule of Law, the power of the vote, and money.”
How do banks create money out of thin air? THEY CAN’T DO THAT, CAN THEY? Yes they can, Dorothy, and they do. They create money from your promise to repay a loan …that’s how. Very simply put, when you go to the bank and get a loan for a house, car or credit card and you promise to repay the loan with interest by signing a contract, you create debt. The bank then takes that “promise to pay” to the Central Bank and they get at least 9 times that amount on your piece of paper. So the bank creates money from a piece of paper that you sign. In other words, banks create as much money as we can borrow.
Most people do not know where money comes from. How does a dollar appear? Let’s say that there is $200.00 in the total economy. Who makes the decision to change that number to $300.00?
Most people would answer “the government” or “the central bank”. These are good guesses, but wrong.
The correct answer is: YOU DO. When you borrow a hundred dollars, those hundred dollars appear magically in the economy. They did not exist before you took out the loan and they will not exist after you repay it.
The monetary system works like this, somewhat simplified: a bank must have a certain fraction of its outstanding loans as savings accounts. That’s called a “reserve”. If that fraction is 1/9 (a common number), and you deposit $1,000 in a bank, that bank has the right to get $9,000 from the Central Bank and lend it to other people, at a higher interest.
“I am afraid that the ordinary citizen will not like to be told that banks can and do create money. And they who control the credit of the nation direct the policy of Governments and hold in the hollow of their hands the destiny of the people.”
Reginald McKenna
Past Chairman of the Board,
Midlands Bank of England
In the real world, if you need a hammer and go to your neighbor to borrow the hammer, a piece of paper that promises to lend you the hammer does not work…you need the hammer. In the artificial monetary world, a promise to pay money that the banks do not have is passed off as money. Banks do not lend money. They lend promises to supply money that they do not possess. So, if we can have no money without debt then if there is not any debt then there is no money? That is exactly right.
Asset Protector Group
ActOnDebt