Bank fraud misleading borrowers, is a well known and much documented practice. When a purported borrower takes out a loan from a bank, it may appear that the bank is lending its own money.

By the way, none of this is financial or legal advice

[Source of this post: realworldfare.com] .

However, under 12 U.S.C. § 83, banks are prohibited from lending their own funds. Instead, they use the purported borrower’s promissory note as collateral to create credit, not using their own capital.

This process lacks transparency, leading to non-disclosure and fraud, which may render such agreements void ab initio (invalid from the outset).

How the Scheme Works

The purported loan you receive from banks are absolutely not a loan, but rather a return of your own equity and a swap of your valuable promissory note, for “credit.” A simple “currency exchange.”

99% of the people don’t comprehend this bank fraud misleading borrowers, who fall victim to coercion and extortion every single day.

The purported loan is actually based on your own credit and financial signature.

The bank essentially monetizes your promissory note as an asset but fails to disclose these details to you, lacking the full disclosure and transparency required by law.

Has your bank ever disclosed the fact that they never credited your accounts?

“Colouring of Law”

The term “colouring of law” refers to actions that appear to be legally justified but are used to violate or infringe upon legal rights.

Banks, in this context, misrepresent the loan process. They’re pretending to provide their own money when they are actually using the purported borrower’s promissory note to create credit.

Loan Process and Lack of Full Disclosure

When a purported borrower signs a loan agreement, the bank deposits the promissory note as an asset and creates credit based on that note. The funds credited to the purported borrower’s account don’t come from the bank’s reserves. These funds are generated from the note.

This method, while consistent with fractional reserve banking, is not fully disclosed to the purported borrower. In what way is this not bank fraud misleading borrowers?

Without this disclosure, the bank’s actions teechnically constitute fraud. As the purported borrower is misled into believing they’re receiving the bank’s own money and feel obligated to pay it back.

This deceit and lack of essential information makes the agreement also technically. Void ab initio. Void from the beginning.

Have they informed you that your promissory note is treated as an asset and not a liability?

Did they reveal that, by law, the purported borrower (you) is actually the creditor?

Legal Remedies for Purported Borrowers

  • Demand Compelete and Full Disclosure:
    Purported borrowers can request all loan details under consumer protection laws. If the bank fails to disclose that the purported borrower’s note funds the loan, the borrower may challenge the validity of the contract.
  • Invoke UCC and Common Law Protections:
    The Uniform Commercial Code (UCC) covers negotiable instruments like promissory notes. If the bank’s conduct violates these provisions, the purported borrower may seek to void the contract or obtain relief under the UCC.

Fraudulent inducement to contract can also be addressed under common law.

  • Cite the Agreement’s Void Status:
    An agreement lacking full disclosure may be considered void ab initio. Courts often rule in favor of borrowers who can demonstrate that they were misled or that material facts were withheld.
  • Legally Claim the Assets and Be the Executor of Your Own Estate:
    The purported borrower can assert control over their assets and act as the executor of their own estate, taking charge of their financial matters legally.
  • File a Lawsuit:
    If fraud or misrepresentation is evident, the purported borrower has the option to file a lawsuit against the bank for damages and to seek remedies under applicable state and federal laws.

Bank Fraud Misleading Borrowers

Banks cannot legally lend their own money as stipulated by 12 U.S.C. § 83.

Banks engage in fraud and deceit and failing to disclose this. Often they misrepresent the nature of loans and financial products. They operate under the color of law, misleading purported borrowers into thinking they receive bank funds.

This lack of full disclosure constitutes fraud, making such agreements potentially void ab initio.

You now have knowledge to protect yourself from these practices.

Understand your rights, including legal remedies such as claiming your assets, filing lawsuits, and invoking UCC provisions.