Complaint Review: Capital One

After this series of letters, Capital One zeroed out my account ($900 worth) and removed all info from my credit reports. THAT I give them credit for, if you'll excuse the inane pun.

Capital One Services
P.O. Box 85015
Richmond, VA 23285-5015

Dear Sir:

It has come to my attention that Capital One and other banks in the Federal Reserve System have been party to fraudulent activities. I sincerely hope this is wrong. It would help me a great deal if you could answer some questions about this before I continue to make payments on or use my Capital One credit cards. My account number is XXXXXXXXX.

1. Whose account did you withdraw money from in order to pay the vendors when I made charges to My account?
2. Was the money created by my signing the voucher when I made the purchase?
3. Is it Capital One's policy to create checkbook money in amounts equal to the charges made by Capital One's customers?
4. Does Capital One have on file a contract signed by Me with a bonafide signature?
5. Will Capital One provide a copy of the journal entry that is made when I make a charge?

Please answer these questions within ten (10) days so that I am not late in making my payment. If I do not hear from you, I will assume that what I have heard is true and will, therefore, rescind my contract with Capital One, as I do not wish to be party to any sort of fraud.

Thank you in advance for your cooperation. I look forward to hearing from you so that I may put my concerns to rest.

Sincerely,

You will not get a sensible or satisfactory answer to this letter. That is one reason for sending it certified mail. Anyway, wait the 30-45 days and send the next letter:

Capital One Services
P.O. Box 85015
Richmond, VA 23285-5015

Dear Sir or Madam:

On , I sent a letter (copy enclosed and attached and made part of this correspondence) asking for information concerning how CAPITAL ONE SERVICES operates and how charges and the like are handled with its system. My questions remain unanswered, but I have done considerable research concerning these matters. CAPITAL ONE SERVICES has refused to answer my questions, so I have taken this to mean that it is doing as other banks are: loaning or creating credit on its books. I am withholding payment based upon my letter of . If you can prove to me that your bank actually gave me or the vendors involved something other than an electronic deposit to the vendors' accounts (checkbook money), then I will willingly pay the balance due on account number xxxxxxxxx .

In addition to my original questions, I would also like you to provide the following information:

1. A copy of the bank charter, and
2. The names of all the members of the Board of Directors.

I am in possession of a booklet published by the Federal Reserve Bank of Chicago called Modern Money Mechanics. The booklet describes who creates money. The court decision in First National Bank of Montgomery vs Jerome Daly (1968) prohibits banks from creating money and credit on their own books by means of booking entries. It appears this is what you are doing, and it is fraud. I refuse to be party to any fraud.

Please respond within thirty (30) days from receipt of this notice and supply me with all of the information that I have requested. Unless I hear from you to the contrary, I will consider my accounts with you closed and this matter settled. Please be sure to sign any and all correspondence under penalty of perjury and send it only to the address exactly as it appears below.

Thank you in advance for your cooperation.
____________________________________________________________________

All you will get in return to this letter is probably a statement showing how much money you owe them or a copy of the agreement you signed when you got the card. Neither is a valid response. So, here is the third letter to send.



Attn: Legal Department
Capital One Services
P.O. Box 85015
Richmond, VA 23285-5015
RE: Account number XXXXXXXXXXX

Dear Legal Department:

I am sending an affidavit of revocation of signature, returning your credit cards and demanding proof of the cancellation of all the related computer-generated book keeping entries. Failure on your part to cancel your computer records, or any action by you or your agents to collect on this account, will result in immediate reprisal.

This action is being taken and this refusal is made timely and for cause, without dishonor, and recourse to me personally, pursuant to ORS 71.3501 Refusal for cause without dishonor.

ORS 71.3501(b)(3) states:

Without dishonoring the instrument, the party to whom presentments is made may (i) return the instrument for lack of a necessary endorsement, or (ii) refuse payment or acceptance for failure of the presentment to comply with the terms of the instrument, an agreement of the parties, or other applicable law or rule.

When I first contracted for a credit card, I mistakenly thought that Capital One Bank would be loaning me money which it received from other depositors and/or investors. Now I have discovered from reading Modern Money Mechanics, published by the Federal Reserve Bank of Chicago, that Capital One created the money that I borrowed by using my promise to pay to generate computer entries on my account. In effect, your bank created money out of thin air.

I am aware that the United States Code Title 12, Section 24, Paragraph 7, confers upon a bank the power to lend its money, not its credit. In First National Bank of Tallapoosa v Monroe, 135 Geo. 614; 69 S.E. 1123, the court, after citing the statue quoted above, said:

[T]he provisions referred to do not give power to a national bank to guarantee the payment of the obligations of others solely for their benefit, nor is such power incidental of the business of banking. A bank can lend its money, but not its credit.

In Howard & Foster Co. v Citizens National Bank of Union, 133 S.C. 202; 130 SE 758, the court stated:

It has been settled beyond controversy that a national bank, under federal law, being limited in its power and capacity, cannot lend its credit by guaranteeing the debt of another. All such contracts being entered into by its officers are ultra vires and not binding upon the corporation.

See also Merchants Bank of Valdosta v Baird, 160 F 642; 17 Lns 526.

Capital One Bank did not tell me that it was creating money out of thin air, called bank credit, because to do so would have disclosed that there was no consideration from Capital One Bank to me. A lawful consideration must exist and be tendered to support the note. In short, if there is no full disclosure and no consideration, there is no contract.

I have written you two letters of explanation about this and given you ample time to reply. If you were not committing fraud, you would have immediately replied and said so. Your first reply was a copy of my signature and past credit card statements, and you did not even bother to respond to the second letter. Therefore, I hereby revoke my signature on the original application as presented to Capital One Bank.

ORS 71.3501 allows you thirty (30) days from receipt of this Refusal for Cause, without dishonor, and without recourse to me, to state under oath the following: That Capital One did not create money by loaning its credit and charging interest upon that loan, in violation of the law of contracts.

If you do not respond within thirty (30) days, a default will be created through material misrepresentation which will vitiate anything that occurred from the time that we began doing business together until thirty (30) days from now; ORS 71.3103.

If, within thirty (30) days, you do not either answer to the above under oath with penalty of perjury or provide me with proof of the cancellation of this computer-generated debt, the return of my application, and the return of all monies that I have paid to you since the beginning of our business relationship, then I will seek damages for fraud. The Uniform Commercial Code allows me to seek the return of all monies paid to Capital One plus triple damages.

Thank you,

Sign Here

Without prejudice and without recourse to me ORS 71.1207

Then you can ignore whatever garbage they send after that or you can just return it to them and say something like this:

CapitalOne
Po box 25131
Richmond, VA 23276

I am returning your correspondence, as this matter has been settled. I have sent you three letters over the course of nearly four months. I have not received a response to these letters and, therefore, have concluded that CapitalOne is operating fraudulently and that it has not loaned me anything but a liability. Until you prove to me that your bank has advanced to me a bank asset, I am under no obligation to it whatsoever. CapitalOne has not fulfilled its contract with me. I know that your bank's records still show that it owes me an asset because what CapitalOne loaned me was created by my note to them. If CapitalOne wants payment in like funds, then I will be glad to send you a promissory note, which is all that you ever gave me.

I will consider this matter to be closed on your part also, unless CapitalOne answers my letters. Any further contact from you will be considered harassment and will be dealt with accordingly. If you find it necessary to contact me, please do so only at the address below, exactly as it appears. All other correspondence will be refused, and telephone calls will not be accepted. In addition, all further correspondence must be signed under penalty of perjury with the signature of a real person accepting full liability for their actions.

Sincerely,