Credit Secret Loophole: What You Should Know

You may have heard about the secret words when creating a statement in court that can potentially help write off some debts in a court situation. Thus, certain words and phrases can help you avoid debt. However, why do these words work like a secret loophole?

So, you probably know that the original holder of the debt, such as the lender, can sell the debts it considers bad to collection agencies when the chance of getting it back is very little. The lender does this in order to return at least a minimum of his money, but usually the debts are sold for pennies on the dollar. Debt can be considered bad for many reasons, and when it is sold, the original documents usually do not accompany the information about the account of the original debtor. Thus, most often the collection agency receives only a table with the names of the debtors, their numbers and the amount of debt. However, pay attention to one important detail - according to most laws, if the lender cannot present the original promissory note or loan agreement, the debt is considered invalid. Thus, the creditor is deprived of the right to collect the debt.

Important! If you are being sued for a delay in debt, it is still recommended that you consult with a lawyer. Often, lenders who sue borrowers believe that the borrower either does not appear in court, or does not know the secret words. Thus, having received legal advice, you can be prepared for any situation.

So what is the 11word phrase credit loophole?

Many people have never heard of this, so let's figure it out, what is this 11-word phrase to eliminate debt? In fact, it does not always consist of 11 words, but this is not so important. So, as a defendant, you must say the following in court:

“Your Honor, unfortunately, I can’t recognize that amount, that’s why I’d like to ask the plaintiff to show me how they came to the amount I supposedly have to return. Could they show me the original loan agreement I signed for that amount? "

This phrase (no matter how you formulate it, the main thing is that the meaning is clear) works because in the overwhelming majority of cases the creditor does not have original documents that he could show in court. Thus, most creditors go to court thinking that the debtor does not know the secret phrase.

Is the 11word phrase can help to stop debt collectors?

Before using this phrase, you must understand that it is wrong if you really owe the amount they are asking for. Often the problem is that the amount is generally exaggerated or fabricated. So you really need to ask how they arrived at the amount they are asking you to pay.

In any case, you can try to negotiate the payment of the debt, and also find out if the statute of limitations for the debt has passed. Most often, creditors make concessions, since the chance that they will receive money through the court is rather small. Therefore, ask for evidence of the amount along with supporting documents. If they cannot provide the original loan agreement and prove your debt, then they cannot make you pay.

How can I stop collection calls?

You probably know that collectors can be very persistent and aggressive, which is why many people receive a huge number of calls or even threatening letters. Thus, when working with collectors, you must know how to behave in order to avoid unpleasant and stressful situations.

After you are certain that the debt is indeed yours, try to be open about your financial situation and negotiate the terms of your debt. Also carefully study the rules that collectors must follow when collecting debt. Knowing your rights will help you deal with them.