Thursday, December 27, 2007
Phase 3: Hitting where it hurts - stop paying the banks
While writing my Open Letter to Barclays (Juniper Bank), I checked my email and saw the link to Judge Andrew Napolitano’s speech.
Fox News legal analyst Judge Andrew Napolitano is among the fiercest defenders of individual rights. Both in his daily appearances on the country’s most-watched cable news network and in a series of books (most recently, A Nation of Sheep), Napolitano consistently and defiantly argues that the only legitimate government is that which respects its citizens rights in all cases.
In late October, Napolitano gave the keynote address at the conference Reason in DC, where he delivered a spellbinding speech that blended a masterful understanding of American history with a blazing outrage at the excesses of the new security state. “Who [is] the greatest violator of the Constitution?” asks Napolitano. “George W. Bush has shown less fidelity to the Constitution than any president since Abraham Lincoln.”
Click above to view the Judge’s speech (approx. 40 minutes).
It started out a bit slow, but much of the speech was news to me and some of the stuff just blew my mind. And how does it relate to Phase 3? What is Phase 3?
Phase 1 was my documenting and researching problems with credit reporting and FICO scores on my websites in the 90s.
I wrote about how things sucked, how creditors, collectors, CRAs and Fair Isaac caused so much pain and suffering.
Phase 2 was documenting my lawsuits against creditors, collectors, CRAs and Fair Isaac in the last 7 years.
I set out to show my readers how to find justice in the courts.
I documented the corruptions of the legal system, procedures, laws and judges. Justice exists at best for the wealthy.
Notably, just about nobody could care less. Capital One claimed to have spent $100,000 to defend against me (no discovery, mainly research and motions to dismiss), but it cost me even more money and literally years of my life. Considering that Capital One’s income is millions of times greater than my income, I was obviously only hurting myself.
Phase 3 is my call for judgment-proof consumers to stop paying their unsecured debt.
It’s free and unless you publish your refusal to pay as I do, it takes practically NO time and effort. Every penny you don’t send to the banks is gravy. In fact, many millions would greatly benefit from doing a little research to determine how to become judgment-proof (state law).
If you own a home, you may have to file for bankruptcy to be able to refinance or sell your house if the creditors get judgments against you. However, most judgments can be settled for less than 50% of the original amount, sometimes a LOT less. And that’s especially true once the debts have been sold to debt buyers.
I have not heard from WaMu since before Christmas and now that I stopped paying my Juniper credit card, my credit rating is sure to be destroyed. While I have reasons to stop paying almost all my credit cards (especially Capital One, Target and Household), I will wait to see how they react to my credit reports. If the rate is increased or the account closed or the limit lowered, I’ll stop paying.
Phase 1 and 2 each lasted about 7 years and I accomplished nothing.
I tried to help people by example. I encouraged them to publish their problems and to sue for their rights.
I miserably failed, but it’s not my fault. If I had prevailed in court, the defendants and their scum sucking lying lawyers hadn’t continually lied, the judges hadn’t been so corrupt, the consumer attorneys had some morals and spine and most legislators weren’t paid off by the industry, I’m sure more readers would have filed lawsuits and Phase 3 would have been preempted.
But things being as they are, Phase 3 is the logical next step.
Since Phase 3 requires people to do NOTHING and it is PROFITABLE, I think there’s a chance that it’ll get better results.
It requires no skill and you get the instant reward, the $$$ you are NOT sending to your creditors.
Maybe the legislators will finally stop ignoring me.
They weren’t worried about the exploitation of hard working decent Americans by ruthless corporations. Will they worry that the banks will be exploited by people who refuse to pay their bills?
Of course. They already quickly wrote new laws to prohibit the increase of some adjustable rate mortgages. That’s NOT legislation to help consumers, but to keep the banks from having to foreclose on millions of houses and going bankrupt.
If enough people stop paying their credit cards, we’ll quickly see laws prohibiting rate increases and excessive credit card rates.
I did NOT stop paying WaMu and Juniper because I can’t pay them.
I just received $3,000 in early December and should get another $15,000 from the sale of my previous home next week. I’m NOT refusing to make my payments because I can not pay, but because I do not WANT to pay WaMu and Juniper.
I have better things to do with my hard earned money. I’ll continue to work on my unfinished house and I’ll pay for some depositions and filing fees.
Additionally, I don’t just want to teach my subscribers and clients how to get the credit they deserve, but also how to continue to have high credit scores DESPITE the defaults. I’ve seen MANY scores in the mid to high 600s with recent collections. It just takes a bit of planning.
Just recently I had a reader suggest that I start paying cash.
I have NO intention of doing so. Why waste $60 on fuel and a day to go to Vegas to pay 50% more for a product than when I order online and pay with a credit card?
Why give up the right to dispute charges for substandard products and services?
And I just really like to know where all my money goes.
When I first moved to the area, I paid a guy in the neighborhood cash to work on my car. 2 weeks later he came by my house and claimed that I still owed him $20.
A few years ago, I paid cash for some roofing work. A few months later, the guy said I still owed him $20.
I don’t like paying cash. I prefer to be able to PROVE that I paid my bills.
Even though I DID prove that I paid at least 4 of my bills, the creditors claimed I didn’t (Pacific Bell/American Agencies, Verizon, DirecTV/Focus Receivables and Dish Network/CBE). If I paid cash, I’d probably have to pay my bills 3 times to make them happy.
And of course the fact that I had to spend many thousands of dollars to prove that I paid my bills and the thousands of hours that I had to spend on litigating greatly contributed to finally realizing that I have to look at other options to keep my earnings.
And even if your insurance premium is a few hundred dollars higher because your scores are low for a few years, is it really a big deal? You’re saving $30k or $80k or $200k in credit card debt and interest.
If you owe $30k, you’re likely to pay $60k by the time you’re done paying interest and fees and $90k or more if you continue to use the credit cards because you need the money to pay the bills.
I hope to inspire millions to take a long look at their finances and to do what’s best for THEM and their families NOW.
Don’t wait until you can’t make the payments.
