Today I received in my emails from someone marketing information for Accounts Payroll, some sort of seminar on who gets 1099's for on a settlement dispute. It seems to me that allocation should take place in the settlement agreement, otherwise if the income was a write off to the credit card company, it is their problem, should be recaptured as income, and should NOT have to be declared by the creditor--because most of it typically consists of those illegal $35 overlimit and late payment amounts--which are illegal.
No person damages by brach of contract gets a wind fall. Charging $35 for being a few days late on a payment IS a windfall to the creditor. Once that happens, the debtor should cancel the card and inform the creditor that the charge IS illegal. All you get for breach of contract (and this is legal theory going back centuries to English commonlaw) is ACTUAL DAMAGES. How many times must I repeat this. If someone breaches a contract, all they get is actual damages.
So when your credit card company hikes up your bills by $35 for an overlimit charge (which they created), and then a $35 charge for being a few days late, a month late or whatever, you should know those charges are illegal.
Why do you think in court the companies are sooooo eager to settle accounts for pennies on the dollar. If you asked for discovery on the original contract you signed, they probably lost it. If you ask for discovery of all your purchase amounts and interest and fee charges, you will probably find them running an even 2 to 1! That's right. A fifty percent or more penalty for being late, or having lost your job or having a sick dependent or even illness yourself.
There are numerous petitions on www.mypetitionsite.com on making corporations no longer a protected "citizen" under the Constitution and that stricter law may apply to them than citizens--ie, the right to make unlimited campaign contributions as a "citizen" of the US. Please sign and support those.
Showing posts with label credit card charges. Show all posts
Showing posts with label credit card charges. Show all posts
Wednesday, November 30, 2011
Saturday, October 10, 2009
Service Charge and Fees are Illegal
There is absolutely no doubt that fees, fines and penalties are completely illegal and this concept applies to anyone that does business in the US, including banks, credit card companies, your doctors, your lawyer (a lawyer can have an ethics complaint filed against them for such a practice) and ANYONE else offering a product or service in commerce or industry. This concept involves a state wide law, call the Uniform Commercial Code ("UCC") which governs business in all 50 state and 7 US territories. These uniform laws, and the UCC in particular, is one of the singular reasons why the US has become over the years, a super economic power in the world. When you tamper with the UCC, you tamper with the basic efficiencies of the US economy. The courts know this. The legislators throughout the US know this. That is why they enacted the UCC throughout the US and 7 territories.
Getting back to fees, fine and penalties, then why are they illegal? The reason for this is that needless fees, fines and penalties hamper business in the US and judges won't impose them. People should be free to break their contracts and go elsewhere when the economy changes. This creates more business, more cash flow and more good and services when people are only getting paid for what they sell or service.
This about it, to allow a business person to charge something extra for a contract defaults (which happens all the time, we constantly made decisions regarding how to make our lives better and more efficient, and well, if you need to part B instead of party A because party B came up later but it's family, you know you will do that because that relationship is more important.
Now, when banks do this it becomes down right evil. It slides into the field of "usury" which is where Dante put entities that practiced this on the lowest rungs of hell. When you overdraft your checking account for a few minutes and your bank charges you $35 but you have plenty of money in that bank, except in a different account, that's definitely "money for nothing and chicks for free". Talk about communism for corporations. Yikes!
The banks know about all your accounts and yet they do this all the time anyway. People complain about bailing out the banks and credit card companies, but they don't realize is that all the fees, fines and penalties they have been charging for years is completely illegal. If you ask me and many lawyers and economists, one of the major reasons for the current crunch in the credit business is exactly these illegal fees, fines and penalties. They add up so quickly, consumers can't pay their debts and so they stop paying all together and the whole system topples like dominoes. Now no one will loan money because they know it is likely a consumer eventually won't pay a dime. But the financial industry brought this stalemate upon themselves. It's completely karmic in nature. Banks and credit card companies have to drop these illegal practices or we will lose the entire economy eventually. Banks won't loan and consumers won't borrow, (which is happening now, studies show 70% of consumers are using debit cards only), and so the economy will stagnate.
And credit card companies that charge $20, $30, even up to $50 for a day or two late payment are absolutely no better--they are down right evil in doing so. The employees that enforce these invalid, illegal and unenforceable covenants are equally as responsible in their own right.
My suggestion is that if you have a job in a bank or credit card company and you are part of this system, is to simply get another job. It's not worth it.
Getting back to fees, fine and penalties, then why are they illegal? The reason for this is that needless fees, fines and penalties hamper business in the US and judges won't impose them. People should be free to break their contracts and go elsewhere when the economy changes. This creates more business, more cash flow and more good and services when people are only getting paid for what they sell or service.
This about it, to allow a business person to charge something extra for a contract defaults (which happens all the time, we constantly made decisions regarding how to make our lives better and more efficient, and well, if you need to part B instead of party A because party B came up later but it's family, you know you will do that because that relationship is more important.
Now, when banks do this it becomes down right evil. It slides into the field of "usury" which is where Dante put entities that practiced this on the lowest rungs of hell. When you overdraft your checking account for a few minutes and your bank charges you $35 but you have plenty of money in that bank, except in a different account, that's definitely "money for nothing and chicks for free". Talk about communism for corporations. Yikes!
The banks know about all your accounts and yet they do this all the time anyway. People complain about bailing out the banks and credit card companies, but they don't realize is that all the fees, fines and penalties they have been charging for years is completely illegal. If you ask me and many lawyers and economists, one of the major reasons for the current crunch in the credit business is exactly these illegal fees, fines and penalties. They add up so quickly, consumers can't pay their debts and so they stop paying all together and the whole system topples like dominoes. Now no one will loan money because they know it is likely a consumer eventually won't pay a dime. But the financial industry brought this stalemate upon themselves. It's completely karmic in nature. Banks and credit card companies have to drop these illegal practices or we will lose the entire economy eventually. Banks won't loan and consumers won't borrow, (which is happening now, studies show 70% of consumers are using debit cards only), and so the economy will stagnate.
And credit card companies that charge $20, $30, even up to $50 for a day or two late payment are absolutely no better--they are down right evil in doing so. The employees that enforce these invalid, illegal and unenforceable covenants are equally as responsible in their own right.
My suggestion is that if you have a job in a bank or credit card company and you are part of this system, is to simply get another job. It's not worth it.
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