Owe no debt by writing "No contract" in dispute comments?

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http://i.imgur.com/rPx0mhQ.jpg 

or urban legend/internet hoax/alternate facts?

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Looks like 71 out of the 72 people need to take a basic accounting class.

Yes, please follow DebtSlayer420's advice and let us know how it goes.

You can't be..

Per credit.com blog:
"The agreement prohibits collection agencies from “reporting debt that did not arise from any contract or agreement to pay (including, but not limited to, certain fines, tickets, and other assessments).” Even better, this prohibition is retroactive: the CRAs are supposed to find a way to identify previously reported accounts of these types and remove them."

Also reddit discussion.

I wouldn't be too surprised if this works, either temporarily if the collectors don't report the debt at regular intervals, or permanently if they don't follow the applicable laws or if the CRAs are too scared of the settlement described in that blog and simply didn't implement it correctly. But based on the reading, the use of "no contract" is intended to show that there was no original contract. The sale of debt doesn't invalidate the obligation to pay it. These people are misinformed and are lying in their disputes. I'm not sure what's the penalty for lying in a credit dispute.

I love the "they wrote off the obligation on their taxes which wrote off your obligation to pay" argument. Apart from the fact that the two have absolutely nothing to do with one another (if your landlord is evading taxes by not reporting rental income, that doesn't mean you get to live rent-free), the debt was an asset that was sold. If you pay it back, the debt buyer reports a gain on their taxes.

"If your original creditor sold your debt to a collection agency, they also wrote off your debt on their taxes which wrote off your obligation to pay"

I'd love to hear more about their convoluted reasoning behind that claim. Does it go something like this?

https://www.youtube.com/watch?v=XEL65gywwHQ




When the lender "writes it off", that's simply proper accounting. A company pays taxes on their profits minus their losses. When they collected interest from you on previous payments, each year that interest went into that profit-loss calculation as the profit part. Now when they sell the debt, they take your remaining balance and subtract off however much they sold it for and that goes into the loss side of the equation for this year. Likewise, when the debt collector buys a debt, whatever they pay is their cost basis. If they eventually collect more from you than they bought it for, the excess counts as a profit. Otherwise whatever the shortfall was is counted as a loss.

But all of this is simply to determine how much taxes they have to pay. A tax "write off" is not a reimbursement. Nobody has been made whole by any write off. A write off is simply the equivalent of softening the blow slightly when you get kicked in the crotch.

I can believe there are anecdotes where this or something nearly as stupid does remove stuff from credit reports. I always assumed that blind disputing was always a big part of what "credit repair" agencies really do. Surely some creditors eventually won't be bothered to confirm the information within time limits, or will just make a mistake and let a dispute stand.

But yeah, the idea that this particular scenario is valid is funny.

Agreed, there are cases where the dispute will work. We've seen claims about that with the mortgage crisis...poor record keeping with a mortgage being sold over and over again and somewhere along the line proper documentation got lost. In theory you could call their bluff, and if they don't have the documentation to prove it, you could be in the clear. At least that was the theory...I don't recall if we ever saw any stories of people getting away with it successfully.

But their logic behind why you can win is completely flawed.


Edit: But if you believe those claims are true, then I'm happy to inform you that the government was never constitutionally authorized to collect income taxes, and you don't have to pay the IRS a penny. See the following link for more details
https://en.wikipedia.org/wiki/Tax_protester_constitutional_argum...
 

Seems legit.

When the police show up , don't forget to tell them you are a Sovereign Citizen and you don't have to pay taxes either.
Ask Wesley Snipes how well it went for him.

And note the 'anonymous' of the post as well as the age (3 years ago) and the lack of facts.
This wouldn't pass a Snopes smell test.

For all we know, this was written by a 13yr old who doesn't even know what a debt collector is.

LordKronos said:   Agreed, there are cases where the dispute will work. We've seen claims about that with the mortgage crisis...poor record keeping with a mortgage being sold over and over again and somewhere along the line proper documentation got lost. In theory you could call their bluff, and if they don't have the documentation to prove it, you could be in the clear. At least that was the theory...I don't recall if we ever saw any stories of people getting away with it successfully.

But their logic behind why you can win is completely flawed.


Edit: But if you believe those claims are true, then I'm happy to inform you that the government was never constitutionally authorized to collect income taxes, and you don't have to pay the IRS a penny. See the following link for more details
https://en.wikipedia.org/wiki/Tax_protester_constitutional_arguments

  
Right, but how is this any different than simply putting in a dispute as "I dispute - Please validate" ?

Look, I don't take advice from anyone who lets their phone run down to 8% battery, OK?


Don"t forget to put "Paid in Full" in the memo of the next check to your mortgage company.
Do it on your first payment and FREE HOUSE!

saladdin said:   Don"t forget to put "Paid in Full" in the memo of the next check to your mortgage company.
Do it on your first payment and FREE HOUSE!

  If this actually worked I would gladly go find my check book to write and send in a check!  But instead I will keep my autoppay going online.

forbin4040 said:   Here's the link to the original post

https://www.creditkarma.com/question/no-credit-card-just-owe-bills-that-went-into-collections

  
Misinformation.... misinformation everywhere. 




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