This edition of the Texas Consumer & Commercial Law Update focuses on debt elimination scams currently being perpetrated on the public. These scams have become increasingly prevalent due to the ease with which the Internet allows unscrupulous individuals to promote their scams with a patina of legitimacy. This eNewsletter discusses the supposed theories underpinning debt elimination scams and summarizes the main arguments being used to overcome them.

Scam Number 1 - Bogus Arbitrations

In this scam, a consumer is told that he may unilaterally change the terms of the account agreement to remove the contractually agreed arbitration forum and substitute a non-recognized (bogus) arbitration forum. Read more...

Your questions answered

Is there any truth to the theory that national banks cannot lend credit?

Can a customer of the bank unilaterally choose an arbitration forum to resolve disputes?

Has any individual who obtained a bogus arbitration award been successful in confirming the award in court?

To better identify the potential existence of a debt elimination scam, who are the players involved?

Scam Number 2 - Vapor Money

This scam derives from the “theory” that a loan funded by wire transfer rather than cash is unenforceable. Read more...

Your questions answered

Have the courts done anything to the organizers of the scam?

Read the full update
Amx Enterprises, Inc. v. Bank One, N.A.
 
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Bogus Arbitrations
Vapor Money
 
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