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• getoutofdebtfree.org has now been Completely Updated!
• Two more countries added- Australia and New Zealand
• Updated Template Letters- addressed to CEO of the bank!
• Far more information available, including Credit Repair, Dealing with the Courts, Basic Law and FAQ's

The whole site has now been updated with far more resources added, but also improved navigation and layout, with a flowchart guiding you to the appropriate resources based on simple questions and answers. Should you have any questions, we now include the most frequently asked questions by users of the site, so you will probably find answers to any queries you have without having to contact us. We have sample introductory paragraphs to customise the template letters to the replies or absence thereof and we also have sample of the sort of letters to expect from bank and debt collectors. For those who have poor credit ratings, we offer advice on repairing them and also have a new section on dealing with the Courts. Finally we have an introduction to the basic law which we are using, to help you understand what you are doing, which is beneficial and it can make the process more satisfying...

Please let us know what you think of the site and let us know how you get on, taking your power back from the fraudulent, international network of financial criminals, often referred to as banksters...

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A selection of the more frequent questions we have been asked. Please check through before contacting us with a query, as you may find the answer below:

Q: I have already entered into an agreement with the bank, to pay a small amount every month. Can I still use this system and send the letters?
A: Yes you can, as you are requesting other documents in addition to proof of contract.

Q: Will this work for my student loan?
A: Yes, but I would suggest you do not use it until you have a lot of experience in these matters as the Student Loans Company works with the HM Revenue & Customs (HMRC)  to ensure repayments are collected under the Income Contingent Repayment Loan Scheme. One way round this would be to become a Freeman-on-the-Land, where statute law including Income Tax will no longer apply to you.

Q: I have been paying debt collectors, one pound a month. Can I still use this system and send the letters?
A: Yes you can, even though they are more likely to argue with you that you now have a contract with them, you are requesting further evidence in addition to proof of contract, like proof of agency and a signed invoice.

Q: Will this affect my credit score?
A: Unfortunately, yes it will, so you must take this into account before you go ahead, because it may affect you getting credit in future, (should the banking system still be in place for that much longer...) and you may have problems getting a mortgage or mobile phone contract, however, you can challenge them and /or repair it; go to the menu on the left for 'Credit Repair'.

Q: Will this work for my car loan?
A: Generally I would say don't use this on car loans, if the car is collateral as in a Hire Purchase agreement, as some companies with try to reclaim the vehicle and you may have your car stolen from you, especially if it is left outside your home. Should you be confident in your understanding of your rights and have read up on the Screw the Bailiff site or if you simply cannot afford the repayments, then I suggest you have a go and use the template letters.

Q: Will this work for my mortgage?
A: Generally, like car loans, I would say don't use this for your mortgage. You do not want to be evicted from your home and most companies will come to some sort of agreement if you are in serious financial difficulty. However, again, if you are really confident in your understanding of your rights and simply cannot afford the repayments and cannot come to any agreement, then I suggest you have a go and use the template letters, but please understand the consequences.

Q:My creditors keep calling me at work and late into the evening - what are the laws to deal with them?
A:The Administration of Justice Act 1970 S.40 makes it a Criminal Offence for a creditor or a creditor's agent (often a debt collection agency) to make demands (for money), which are aimed at causing 'alarm, distress or humiliation, because of their frequency or publicity or manner'. Equally, a creditor will be committing an offence if they falsely imply that non-payment of the debt will lead to criminal proceedings; or the creditor pretends to be someone they are not e.g. a court official or bailiff. It is also an offence to send a person a document which looks like it has been sent from a court.

If you feel you are subject to Debt Collection Harassment then this too could be classed as a criminal offence. Harassment can be verbal or in writing and would include making repeated calls to your workplace or in anti social hours. The Protection from Harassment Act 1997 makes it a Criminal Offence for any person to pursue a course of action "which they know, or ought to know, amounts to harassment of another person".

Q: Can you explain exactly what a 'tacit agreement' is?
A: A tacit agreement, also known as an implied-in-fact contract, is a a form of implied contract, agreed by non-verbal conduct, rather than by explicit words. It is created with the letters requesting among other things, verification of the debt and the bank's/debt company's failure to comply.

Q: I've got a letter from a firm of solicitors writing on behalf of the debt collectors. What do I do?
A: I would write back explaining that you have a tacit agreement with their client and send them copies of the letters you have sent. It's just another scare tactic, so don't be intimidated.

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This is my favourite. I've been using this paragraph quite a bit recently! :
Firstly, I would offer my condolences about the news of your share price plummeting in the last few months. I do hope my account has not contributed too much to your company’s poor performance.

I used this paragraph after being accused of 'Stalling Tactics' after sending the letters:
With reference to your letter dated XX/XX/2009, I find it remarkable that you will not verify the alleged outstanding debt, but instead, accuse me of stalling tactics. If I owe your company anything, you will be able to supply the requested evidence and if you decline it is you who is stalling and I will owe your company nothing...

Used after the company said they would look into the matter:
Thank you for your letter dated xx/xx/2009 outlining your investigation into whether or not your claim is fraudulent, however I am claiming lawful validation of the debt as previously requested; proof of agency; (List items requested) and have requested them within 10 days.

Used after being phoned after the letters were sent:
An employee of yours, Christina Williams phoned me on 11 February 2009. I have sent you a number of letters, having written to you on the 05 January 2009, the 15 January 2009 and again on the 25 January 2009 requesting proof of agency, (List items requested...)

Final Paragraph for companies chasing after a tacit agreement in place:
Finally, should you not understand that a tacit agreement is lawfully binding, I suggest you contact your legal department. Should you or any of your colleagues continue to contact me via telephone I must warn you that this will now constitute ‘harassment’ and I may be forced to take further action under Section 1 of the Protection from Harassment Act 1997.

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Banks send a variety of standard letters, initially demanding payment, then threatening to report you to credit reference agencies and finally they threaten you with debt collectors. These are standard letters, they are not writing to you so don't take them personally. You will notice that some of banks don't know how to deal with the letters, so presume that you are making a complaint and then go through a ridiculous procedure after which they decide that you have no grounds for complaint but can challenge the decision with the financial ombudsman. Others simply ignore the lawful case we are making and continue to harass you for a little while and then sell the debt off to a debt collector. None of the letters below have resulted in court action... (Some personal details have been removed)

Click on the letter to see it full size-

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Debt collectors also send a variety of standard letters, initially demanding payment, then threatening to visit, then offering an out of court settlement, then threatening to take you to court. These are standard letters, they are not writing to you so don't take them personally. After these letters, they tend to give up, unless they feel they are intimidating you on the phone, in which case they can persist for months. None of the letters below have resulted in court action... (Some personal details have been removed)

Click on the letter to see it full size-

Solicitors Letters:

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Will I ever be able to obtain a credit card again?
Yes, is the short answer. There are basically two ways to repair your credit. I personally don't think it is worth bothering too much with your credit rating, because I believe the whole system is in terminal decline, as of April 2009 and we are going to have to start again with a completely new system, which will be very different from the current one. However, I can't tell you exactly when this will happen, I'm presuming later this year, so I will give you the information as if the game will continue for a while longer. On the practical level you can have an A-rated credit report within 2 years of even bankruptcy. Why? Because lenders are much more interested in your present circumstances than what happened to you 3 to 10 years ago. Rebuilding your credit can be done rather quickly through a systematic plan, and a little perseverance. Keep in mind that positive credit information stays on your credit report forever and negative information for six years, at the most.

The Easy Way
The first way, which is very simple and my personal favourite, which has worked well for me in the past, but it does take up to two years. Simply get a new bank account either a savings account or a 'basic' bank account. These accounts do not offer overdrafts, so are able to be opened with a poor credit rating. Keep a reasonable balance in the account and do not 'bounce' cheques or direct debits. Then after 6-12 months get a savings account with the same bank and keep as much as you can afford in there. Then apply for a credit card. If you get turned down for credit, send a letter to the lender, explaining why you are a better credit risk than your credit report indicates. But it is best to rebuild your credit before applying for credit again. Once you get one card and you pay the balance every month ON TIME, then that builds your credit score and you can then apply for more. Also, if you can, pay all your other bills on time so that utility companies do not upset your plans. Avoid taking out excessive credit.  You should stick to one or two credit cards and one or two other major debts (car loan, mortgage) in order to have the best credit rating.  Do not apply for every new credit line or credit card “just in case.”  Borrow only when you need it and make sure to make payments on your debts on time. Avoid taking out excessive credit.  You should stick to one or two credit cards and one or two other major debts (car loan, mortgage) in order to have the best credit rating.  Do not apply for every new credit line or credit card “just in case.”  Borrow only when you need it and make sure to make payments on your debts on time. You should also know that taking out lots of new credit accounts in a relatively short period of time will cause your credit score to nosedive because it will look as though you are being financially irresponsible. In general, try to make sure that you use no more than 50% of your credit.  That means that if your credit card has a limit of £5000, make sure that you pay it down to at least £2500 and work at carrying no larger balance.  If possible, reduce the debt even more.  If you can pay off your credit card in full each month, that is even better. What counts here is what percentage of your total credit limit you are using - the lower the better.

The Difficult Way
The more difficult way, for those who need credit in the near future is to challenge the information the Credit bureaus hold on you. Credit bureaus have huge databases on the credit histories of consumers. This information is gathered and given to the credit bureaus from creditors that have extended you credit in the past (for example, landlords, credit card companies, the HM Inland Revenue, department stores and banks). Your credit history contains information that creditors use to evaluate and determine your ability and willingness to repay credit. Typically, credit bureaus give the following information: Your open accounts, credit limits, current balances, number of late payments, collection actions, tax liens, and whether you own your own home or not. You can contact the credit bureaus and ask them to send you your credit report. They are:

Experian Consumer Help Service
PO Box 8000
Nottingham
NG1 5GX
Tel: 0115 941 0888
www.uk.experian.com



Equifax Plc
Credit Advice Centre
PO Box 1140
Bradford
BD1 5US
Tel: 08705 143700
www.equifax.co.uk


Callcredit plc
Consumer Services Team
PO Box 491
Leeds
LS3 1WZ
Tel: 0870 060 1414
www.callcredit.plc.uk

They cost - £2.00 You can usually get a free introductory report, but information is usually limited.

You can challenge your credit rating on a number of areas. You can show the tacit contract demonstrating that the debt was never verified. You can also challenge them on your name. If your name appears in UPPERCASE, you can explain that they have your name incorrect and you send them a Statutory Declaration of True Name to confirm this. See Dealing with the courts for an example document.

Challenging your credit entries can be effective because the credit bureaus are often too busy to re-verify the item you challenged within the time limit and therefore will remove it. Also, because of human error, correct information can be inadvertently deleted. After two or three years a closed or inactive file is often stored offsite by your old lenders, so they cannot access it and as a result they do not respond to the credit bureau because it is too much work. If the negative item challenged gets confirmed by the lender, they will not be remove it from your credit file. Wait 1 to 6 months and try again, with a written challenge. It's a legal obligation for the credit reference agencies to deal with every query raised. You should challenge each item separately, in writing only. Don't pick up the phone and call the credit bureau.
You have to patient when dealing with the credit bureaus. Deal with each item one at a time. Wait until one item is resolved before challenging another. You have to provide the following: your full name, DOB, your current address, your previous addresses over the past six years, and your signature. There are basically eight things that look the bad on your credit report. Some common examples are: multiple searches, late payments, defaults(paid/unpaid), CCJ's, bankruptcies and repossession orders. All negative information stays on your credit file for anywhere between 1-6 years.

How does a lender qualify me for credit?
Most lenders look at the number of years you have worked at your present job, the kind of work you do (the worst to best being: manual work, clerical, self-employed, managerial, professional), the number and nature of negative entries in your credit report, the amount of credit you currently have, savings and or current accounts with the lender, length of time at your present address, is the telephone in your own name, do you own your home. If you get turned down for credit, send a letter to the lender, explaining why you are a better credit risk than your credit report indicates. But it is best to rebuild your credit before applying for credit again. Once you have cleared your negative remarks on your history, you can then use the techniques in 'The Easy Way'; to build a positive credit history.

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You do not need a degree in law to deal with banks and debt collectors, however a general understanding of some of the terms we use is not only beneficial to the process, it can also make it more satisfying. It also highlights how the law is often used against us and how little we understand the law in general.

Ens legis: "Ens Legis. L. Lat. A creature of the law; an artificial being, as contrasted with a human being. Applied to corporations, considered as deriving their existence entirely from the law." "Blacks Law Dictionary, Fourth Edition, 1951. (This term is used in the statutory declaration on the Dealing with the courts page). Names of men and women appearing in ALL-CAPITAL LETTERS, even abbreviated versions (with/without initials, etc.) of the true names, are corporate/corporately "colored" renditions of a true name. Colored refers to the fact that they are fictitious, "having the appearance." They do not identify the "being," the real person, you, associated therewith; such construct of names represent property, specifically intellectual property... YOUR PROPERTY. It is unfortunate that this fact is overlooked by almost everyone in society, EXCEPT, the "legal masters" whose existence is predicated upon its exploitation. See also Capitis Diminutio Maxima below.

Capitis Diminutio
Gage Canadian Dictionary 1983 Sec. 4 defines Capitalize adj. as "To take advantage of -
To use to ones own advantage."
Blacks Law Dictionary – Revised 4th Edition 1968, provides a more comprehensive definition as follows …
Capitis Diminutio In Roman law. A diminishing or abridgment of personality; a loss or curtailment of a man's status or aggregate of legal attributes and qualifications.
Capitis Diminutio Minima - The lowest or least comprehensive degree of loss of status. This occurred where a man's family relations alone were changed. It happened upon the arrogation [pride] of a person who had been his own master, (sui juris,) [of his own right, not under any legal disability] or upon the emancipation of one who had been under the patria potestas. [Parental authority] It left the rights of liberty and citizenship unaltered. See Inst. 1, 16, pr.; 1, 2, 3; Dig. 4, 5, 11; Mackeld. Rom.Law, 144.
Capitis Diminutio Media - A lessor or medium loss of status. This occurred where a man loses his rights of citizenship, but without losing his liberty. It carried away also the family rights.
Capitis Diminutio Maxima - The highest or most comprehensive loss of status. This occurred when a man's condition was changed from one of freedom to one of bondage, when he became a slave. It swept away with it all rights of citizenship and all family rights.

Sui Juris: In civil law the phrase sui juris indicates legal competence, the capacity to manage one’s own affairs (Black's Law Dictionary, Oxford English Dictionary). Thus in Roman law the caregiver or guardian of a spendthrift (prodigus) or of a person of unsound mind (furiosus),

Person: Specifically the person is that legal subject or substance of which the rights and duties are attributes. A human being is not a person because he is a human being, but because rights and duties have been ascribed to him. But not all human beings are persons, as was the case in Olde England when there were slaves.(Blacks 3rd).

Society: A society is defined as a number of people joined by mutual consent to deliberate, determine and act for a common goal.

Legal: A legal act is performed in accordance with the forms and usages of law, or in a technical manner. In this sense, illegal approaches the meaning of invalid. For example, a contract or will, executed without the required formalities, might be regarded as invalid or illegal, but could not be described as unlawful.

Lawful: A lawful act is authorized, sanctioned, or not forbidden by law. The term lawful more clearly suggests an ethical content than does the word legal. The latter merely denotes compliance with technical or formal rules, whereas the former usually signifies a moral substance or ethical permissibility. An additional distinction is that the word legal is used as the synonym of constructive, while lawful is not. Legal fraud is Fraud implied by law, or made out by construction, but lawful fraud would be a contradiction in terms. Legal is also used as the antithesis of equitable, just. As a result, legal estate is the correct usage, instead of lawful estate. Under certain circumstances, however, the two words are used as exact equivalents. A lawful writ, warrant, or process is the same as a legal writ, warrant, or process.

Common Law: A system of law that prevails in England and in countries colonized by England. The name is derived from the medieval theory that the law administered by the king's courts represented the common custom of the realm, as opposed to the custom of local jurisdiction that was applied in local or manorial courts. In its early development common law was largely a product of three English courts; King's Bench, Exchequer, and the Court of Common Pleas, which competed successfully against other courts for jurisdiction and developed a distinctive body of doctrine. The term “common law” is also used to mean the traditional, precedent-based element in the law of any common-law jurisdiction, as opposed to its statutory law or legislation (see statute), and also to signify that part of the legal system that did not develop out of equity, maritime law, or other special branches of practice.

All Canada except Quebec and all of the United States except Louisiana follow common law. U.S. state statutes usually provide that the common law, equity, and statutes in effect in England in 1603, the first year of the reign of James I, shall be deemed part of the law of the jurisdiction. Later decisions of English courts have only persuasive authority.

Common law may be summarised by three simple rules:

• You do not steal from anyone
• You do not harm anyone
• You do not use fraud in your contracts

Statute Law:  A Statute is a rule created by a representative governing body of a society designed to create common goals, which carries the force of law by the consent of the governed. A Statute only carries the force of law upon you if you consent to it. If you do not give your consent, a Statute cannot affect you in any way whatsoever. And the courts know this. You may not, but they certainly do and the last thing they will do is tell you. In point of fact they will hide this from you at every opportunity. On the other hand, if you tell them, they will accept it because they know it is actually true.

Law of Contract
A contract is an exchange of promises between two or more parties to do, or refrain from doing, an act which is enforceable in a court of law. It is a binding legal agreement. That is to say, a contract is an exchange of promises for the breach of which the law will provide a remedy.

The elements of a Contract:
Typically, in order to be enforceable, a contract must involve the following elements:

A "Meeting of the Minds" (Mutual Consent)
The parties to the contract have a mutual understanding of what the contract covers. For example, in a contract for the sale of a "mustang", the buyer thinks he will obtain a car and the seller believes he is contracting to sell a horse, there is no meeting of the minds and the contract will likely be held unenforceable.

Offer and Acceptance
The contract involves an offer (or more than one offer) to another party, who accepts the offer. For example, in a contract for the sale of a piano, the seller may offer the piano to the buyer for $1,000.00. The buyer's acceptance of that offer is a necessary part of creating a binding contract for the sale of the piano. If an offer is in writing, it has to be signed by both parties, otherwise it is a unilateral contract which cannot be enforced in a court of law.

Mutual Consideration (The mutual exchange of something of value)
In order to be valid, the parties to a contract must exchange something of value. In the case of the sale of a piano, the buyer receives something of value in the form of the piano, and the seller receives money. However, if a credit card company has created the money 'out of thin air' on computer keyboard, is it valid consideration?

Performance or Delivery
In order to be enforceable, the action contemplated by the contract must be completed. For example, if the purchaser of a piano pays the $1,000 purchase price, he can enforce the contract to require the delivery of the piano. However, unless the contract provides that delivery will occur before payment, the buyer may not be able to enforce the contract if he does not "perform" by paying the $1,000.

Good Faith
It is implicit within all contracts that the parties are acting in good faith. For example, if the seller of a "mustang" knows that the buyer thinks he is purchasing a car, but secretly intends to sell the buyer a horse, the seller is not acting in good faith and the contract will not be enforceable.

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