It is easy to negotiate a settlement on a Wells Fargo Bank credit card account,when you understand Wells Fargo cannot prove a debt (money loss). Wells Fargo does not pay for your credit-card purchases with money. Ralph M. Hawtrey , secretary of the British Treasury, States: “Banks lend by creating credit. They create the means of payment out of nothing.”
Wells Fargo paid for your credit card purchases with bank credit created from nothing with just a bookkeeping entry . Wells Fargo Bank has incurred no money loss (debt) and cannot prove a debt. If you dispute the debt in writing, The Fair Debt Collection Practices Act requires Wells Fargo cease collection activity until the debt is proved.
The banker-owned Federal Reservc allows bank-credit creation on a fractional reserve basis. Wells Fargo uses $1,000 of their cash reserve (savings and 401ks ) to create $9,000 of bank credit out of nothing and use it as a means of payment for your credit card purchases. Court precedents reveal that is an unlawful activity. In American Express Company Co. V. Citizen’s State Bank 194 Nw 427 “Neither, As Included In The Powers Or Incidental To Them, Is It A Part Of A Bank’s Business To Lend Its Credit. If A Bank Could Lend Its Credit As Well As Its Money , *It Might Make A Great Deal More Than Lawful Interest On Its Money Would Amount To. If Not Careful, The Power Would Be The Mother Of Panics*”.
Because Wells Fargo Bank has incurred no money loss (debt) and has been collecting money payments (plus fees and interest), they have already made a profit and will settle for 10 cents on the dollar. However, it is a mistake to settle for even 10 cents on the dollar, as tWells Fargo will report the balance to the IRS as income on which you will have to pay a third for income taxes. If you are fooiish enough to allow any company to get you a reduced payoff, they may buy the account for 10% to 30% and charge you 50% to pay it off, claiming they did you a service by reducing your “debt” 50%. You are still left with 50% income reported to the IRS on which you must pay taxes.
Wells Fargo has no lawful contract even though you signed a credit card application and activated the card. The Court has ruled It is unlawful for Wells Fargo Bank to lend its credit and their contracts are not binding. In Howard & Foster Co. V. Citizen’s Nat. Bank Of Union ,133 S.C. 202, 130 S. E. 750 , It Was Said: “It Has Been Settled Beyond Controversy That A National Bank, Under Federal Law, Being Limited In Its Power And Capacity, Cannot Lend Its Credit *All Such Contracts Entered Into By Its Officers, Are Ultra Vires And Are Not Binding As Such *It Is Not Necessary To Buttress It With Elaborate Citations .*Banks Are Not Eleemosynary Institutions. They May Lend Their Money But Not Their Credit.” In Norton Grocery Co. V. People’s National Bank, 144 Se 501 “The Objection To The Contract , Is Not Merely That The Corporation Aught Not To Have Made It , But That It Could Not Make It. The Contract Cannot Be Ratified By Either Party , Because It Could Not Have Authorized By Either. No Performance On Either Side Can Give The Unlawful Contract Any Validity, Or Be The Foundation Of Any Action Upon It. *When The Contract Is Beyond The Powers Conferred Upon It By Existing Laws, Neither The Corporation, Nor The Other Party To The Contract , Can Be Estopped , By Assenting To It , Or By Action Upon It, To Show That It Was Prohibited By These Laws.”
The court warned “. If A Bank Could Lend Its Credit As Well As Its Money , *It Might Make A Great Deal More Than Lawful Interest On Its Money Would Amount To. If Not Careful, The Power Would Be The Mother Of Panics” The Mother of Panics occurred, wiping out retirement funds nationwide and causing millions of job losses, while Wells Fargo Bank collected 25 Billion dollars of taxpayer money..It’s a hard way to learn not to do business with banks. Try member-owned credit unions.