Posted 10 years ago on April 16, 2012, 3 p.m. EST by knoodle
This content is user submitted and not an official statement
When a "loan" is given, no money from the lender is involved. The "loan agreement " is actually a negotiable instrument that is signed by the "borrower". It is like a check. It is immediately cashed by the "lender", for the full amount. It was created by the signature of the "borrower", but no actual "loan" took place. and the lender is immediately paid in full. When "borrower" repays the "loan" he/she is actually paying it for a 2nd time, plus interest. No money from the "lender" was ever involved. This is fraud, and fraud voids all contracts. Also, to have a valid contract both parties must put up something of value, this is called 'consideration'. If both parties do not put up something of value this also voids any supposed contract. This is called "fractional reserve banking".Do your research, and challenge the alleged debt on grounds of fraud and no consideration. Good luck!