Understanding Contract-Law and You Win

Published November 14, 2012 | By understand contract-law and you win
Jean Keating Counterclaims to Debt Collection

Notes on how to use commercial law to respond to debt collectors with a
counterclaim.
The counterclaim as taught by Jean Keating, is based on several defenses:
The contract should be rescinded because the creditor does not provide full disclosure,
or the contract is extremely deceptive and unconscionable, In re Pearl Maxwell, 281
B.R. 101
According to Jean Keating, the Truth in Lending Act, Regulation Z, 12 CFR 226.23,
says that the security agreement signed with a lender can be rescinded if they have not
provided the proper disclosures. Although home mortgages are exempt from some
rescissions, this option becomes available if they foreclose and they stated the
incorrect amount of the debt, or used the wrong form. The original debt was actually
zero because the borrowers financial asset was exchanged for FEDs promissory
notes in an even exchange.
The Fair Debt Collection Practices Act 15 U.S.C. 1601, 1692, 1693, provides
remedies for deceptive or unconscionable contracts and allows payment in any legal
tender. The contract was deceptive and unconscionable if the actual debt was zero.
Real Estate Settlement Procedures Act 12 U.S.C. 2605, et seq. Provides remedies for
deceptive communications from the lender.
Jean Keating shares that UCC 2-302 provides a remedy for unconscionable
contracts.
When one receives a presentment of a claim from a debt collector, one should accept
it and return it with a counterclaim. A notice of claim is due in ten days and the
counterclaim is due in 30 days. Most presentments are considered to be notices of an
unrecorded or secret maritime lien. A counterclaim is not an argument, but
additional facts for the creditor to consider.
The counterclaim should be addressed to the agent that contacted the debtor in an
attempt to settle and close the account before it goes into court. If it is already in
court, one should ask the court for additional time for discovery and to settle the claim
administratively with the creditors agent. If it doesnt get settled administratively, the
counterclaim is entered into the court.
The primary basis for counterclaims is that all commercial instruments such as
promissory notes, credit agreements, bills of exchange and checks are defined as legal
tender, or money, by the statutes such as 12 USC 1813(l)(1), UCC 1-201(24), 3104, 8-102(9), 9-102(9), (11), (12)(B), (49), (64). These statutes define a
promissory note or security to be negotiable (sellable) because it is a financial asset.
This is necessary because contracts requiring lawful money are illegal pursuant to
Title 31 USC 5118(d)(2).
Jean Keating reminds us that today, all debts are discharged by promises to pay in the
future. All Federal Reserve notes are registered securities and promises to pay in the
future. They are secured by liens on promissory notes of collateral owned by real
people. The statutes do not provide the Federal Reserve Corporation a monopoly on
promissory notes, as debt collectors insist.
Real people create promissory notes that are usually sold to the FED in exchange for
their promissory notes. The FED uses the promises of the peoples collateral to secure
their notes. If people want their, commercial instruments to be legal tender, they must
be secured by a maritime lien on your prepaid trust account recorded at the county and
registered on a UCC1. It then becomes a registered security and a financial asset that
can be negotiated.
Promissory Notes and other commercial instruments are legal tender and financial
assets to the originator and a liability to the lender. If a security interest in the note is
perfected, by recording it on a lien as a registered security, the maker or originator

becomes an entitlement holder in the asset. But the debt collector does not understand
that they have this liability because most people are unaware of it.
Jean Keating cites: UCC 1-201(24), 3-104, 3-306, 3-105, UCC 8-102 (7), (9),
(15), (17), 8-501, 8-503, 8-511, UCC 9-102(9), (11), (12)(B), (49), (64), 12
USC 1813(l)(1)
The corporations records should be requested in discovery. They will show that the
corporation has an offsetting liability to the debtor pursuant to FAS 95, GAAP and
Thrift Finance Reports (TFR). These records include FR 2046 balance sheet, 1099OID report, S-3/A registration statement, 424-B5 prospectus and RC-S & RC-B Call
Schedules. This is how Jean Keating is able to get so much success, he has been in
this game for 50 years and knows all the laws that he can use to win.
The corporation never registers the commercial instrument because they know it is a
financial asset to the debtor. So the debtor must register it to establish a security
interest in the financial asset and take the position of a secured creditor.
So it should be listed on a maritime lien against the prepaid trust account and filed
with the county recorder and put on a UCC1.
Find more notes on Jean Keating Counterclaims to Debt Collection here.
View uploads of other Jean Keating notes and writings here. and watch a great video
interview here.
Read more about similar topics taught by Jean Keating at our homepage/blog.
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Published November 14, 2012 | By understand contract-law and you win

Jean Keating Counterclaims to Debt Collection

perfected, by recording it on a lien as a registered security, the maker or originator

OUR PRIVATE MEMBERSHIP SERVICE:

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