Everyone is sick of hearing the stories of the major banks posting billion-dollar profits and CEOs receiving multi-million dollar salaries, while most people struggle to make ends meet. The average person is, quite simply, a slave to the banks. We have become enslaved through debt and, whilst most people falsely believe they're free, the reality is that no one is more enslaved than the man or woman that believes they are free.
What is "legal tender"?
To really understand the fraud, you first need to understand what "money" is. Money, as we know it, comes in the form of coloured polymer notes issued by the Reserve Bank and they tell us it is legal tender. Unfortunately, it is completely worthless, and the ONLY thing that gives it purported "value" is that people are prepared to accept it for its face "value".
These polymer notes were originally paper notes and those, in turn, used to be certificates for gold. In the old days, when we had a gold-backed currency, you could always exchange your "notes" for the amount of gold detailed on them.
The banks are defrauding you every day
They steal your Certificate of Title, deposit it as their own asset, create "money" from it that they loan back to you at interest, securitise your loan agreement for another payout, and can still sell your house if you miss payments. That is fraud.
The ultimate banking fraud
When you buy a house, you do all the work — finding the property, negotiating the price. You then approach the bank to borrow the money. But the bank doesn't just hand you the money. Instead, they defraud you with three important documents: the loan agreement, the mortgage document and the Certificate of Title.
The loan agreement is your promise to pay — it is a promissory note. The bank can on-sell your promissory note by way of securitisation, which happens the majority of the time. The loan agreement is the value to the bank.
The mortgage is the guarantee that the bank can take action if you break your promise to pay. It is very important to note that YOU own the house at all times — it is not a case that the bank owns the home until you pay it off.
The Certificate of Title swindle
The Certificate of Title is the title to your house — it is the "money" because it has value. At ALL times, the Certificate of Title has YOUR name on it. So what happens to it at settlement? The bank keeps it.
Why do they keep YOUR Certificate of Title when they already have the value from you — your loan agreement — and they already have the mortgage document, which is their security? They have it because they steal or swindle it from you. We challenge you to look through your mountain of terms and conditions and see if the Certificate of Title is listed or detailed anywhere. They don't mention it, and because it is not mentioned and they take it, they have defrauded you.
The banks deposit that Certificate of Title on their books as an asset, and that is where the "money" comes from that they then supposedly "loan" you. In essence, they have stolen the money from you that they then turn around and loan to you, at interest. They then securitise your loan agreement and get paid again. They still collect monthly payments from you for the life of the loan. And if you miss even a few payments, they can sell your house and get paid a THIRD time. If that's not fraud, we don't know what is.
What you can do about it
Anyone who has a current mortgage can write a powerful letter to their bank asking about the Certificate of Title. The Bank Secrets Revealed team have created a series of letters you can send to your bank, asking essential questions about your Certificate of Title and how they are using it. These letters use all the correct legal and banking jargon that puts the banks On Notice that you know what you're talking about.
There are also letters for personal loans, credit cards, and debt collectors if things have progressed further. Were you forced to pay mortgage insurance? That insurance policy actually only covers the bank, not you — there is a specific pre-written letter for that too.
Proof that banks create money through loans
Despite the detailed explanation above, some people still question whether banks really do create money through their fraudulent lending practices. We encourage you to do your own independent research. The Chairman of the Governing Board of the Swiss National Bank gave a speech entitled "How money is created by the central bank and the banking system" which contains admissions such as:
"When a bank provides a loan, it credits the amount in question to the borrower in the form of a deposit to his or her account. This leads to an increase in credits on the assets side and in customer deposits on the liabilities side of the bank's balance sheet."
The banking system can increase the volume of customer deposits by granting loans. The deposits created by the banking system belong to the banks' customers — but the banks are the ones who create them from thin air.
Questions to ask before taking action
Where is your Certificate of Title? The bank keeps it — but they don't mention it in their terms. They deposit it on their books as an asset.
Did your bank create money from your loan? Banks create "money" through lending — your promise to pay becomes their asset, and they loan you money they created from nothing.
Were you forced to pay mortgage insurance? Mortgage insurance only covers the bank, not you. This is insurance fraud and you can challenge it.
Has your loan been securitised? Banks on-sell your promissory note and get paid again while still collecting your monthly repayments.
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Disclaimer: The information provided by Know Your Rights Group is for educational purposes only and does not constitute legal advice. Always seek independent legal advice for your specific situation.