There must be something in the air. I have had two calls this week for helping defending lawsuits based on the concept of “written instruments.” What does this mean?
As I understand the latest theory, and it has changed some over the years, the debtor takes out a credit card. They charge a few thousand dollars, usually about $2,500 or $3,000. Then, they do not pay the bill.
Now, they wait until they are 60 or 90 days behind, then they send a “written instrument” to the bank stating that they do not owe the money, that there is no money in the world and that the bank has been paid its money. They also include a check on a closed account as “payment.”
Ultimately, the bank does nothing. The bank sells it to a debt collector. The collector starts its collection practices. The consumer does nothing. The collector files a lawsuit. Now the consumer wants to defend the lawsuit on the basis of the “written instrument.”
DO NOT TRY THIS! It does not work. It is not legal. In fact, knowingly sending a check written on a closed account can be a crime in some areas. This is some of the worst advice you can get. DO NOT TRY THIS! (I feel like I need to be perfectly clear.)
Even if you are never charged with a crime, this will not work as a defense. This is so flawed that I do not even know where to start with the problems. Suffice it to say, that if this worked, everyone would do it and the financial system of the world would crash.
If you are going to defend yourself in a lawsuit, do not think this will work. Talk to an attorney before you follow any advice you read on the internet. Just because it is on the internet does not mean it is true!