what if I told you that you might have a right to cancel a loan or debt within 72 hours with no questions asked what if I told you that there is a little known rule that gives you the legal way out of financial obligations but Banks and lenders don't want you to know about it in this video we're going to be talking about the 72-hour rule for debt discharge where it applies and how you can use it to legally cancel debt contracts before they trap you now just to tell you a little about myself I've studied consumer law for almost the for the last since 2021 okay starting with credit debt discharge funding and all aspects of consumer law and and and my belief is that consumer law is one of the most important forms of law because you are a consumer you consume okay if you consume then you should understand and know how to protect yourself now I'm I'm going to be showing you guys the legal rights to use to protect to protect yourself against bad debt agreements which is probably 90% of the consumer credit contracts that you get into okay now once again thank you guys for watching this video like comment and subscribe okay if you like comment and subscribe then you and I can continue to invest in each other also if you haven't checked out my last video it will be clipped up here okay so go ahead check out my last video then come to this video I think that this video will really go handin hand with my last video where I talked about being able to get a car for free this is another strategy that you can add on top of that and obviously if you understand this aspect then you could put yourself in a position in a even better position when it comes to getting a free car okay now also want to say man do not implore these strategies if you are not willing to do the digging and do the understanding okay I'm giving you guys the game that nobody is talking about okay but I still want you to go and do your due diligence don't just go based off of everything that I'm teaching you right here do your own due diligence okay now if we're going to talk about the 72h hour recision rule we want to talk strictly about 15 USC 1635 the right of of recision as it pertains to certain transactions okay it says that and we'll break this down a second it says that except as otherwise provided in this section in the case of any consumer credit transaction in which a security interest including and any such interest arising by operational law is or will be retained or acquired in any property which is used as the principal dwelling of the person to whom the credit is extended the obligor shall have the right to resend the transaction until midnight of the third business days following the consumation of the transaction or the delivery of the information recision forms required under this section together with the statement pertaining to material disclosures required under this sub chapter whichever is later by notifying the Creditor in accordance with regulations of the Bureau of his intention to do so the Creditor shall clearly inconspicuously disclose in accordance with regulations of the bureau to any obligor in the transaction in this section rights of the obligor under this section the Creditor shall also provide in accordance with the regulations of the bureau appropriate forms for the obligor to exercise his right to resend any transaction subject to this transaction okay it also says that when an obligor exercises his right to resend under the subsection he is not liable for any Finance or other charges you dig me and any security security interest given by the obligor including any such interest arising by operation of law becomes void upon recision dig me within 20 days after the receipt of the notice the Creditor shall return to the obligor any money or property given as Earnest interest interest down payment or otherwise and shall take action necessary or appropriate to reflect termination of any security interest is created under the transaction if the Creditor has delivered any property to the obligor the obligor May retain possession of it dig me upon the performance of the creditor's obligations under this section and the obligor shall tender the property to the Creditor except that if the return of the property and inine will be impactable and inequitable the obligor shall tender its reasonable value okay tender shall be made at the location of the property or at the residence of the obligor at the option of the obligor if the Creditor does not take possession of the property within 20 days after ownership of the property vest in the obligor without obligation on his part to pay for it okay I just read a mouthful but I I wanted to read this to you guys because a lot of what people don't we don't just say this out of our mouth you dig me we don't just say oh you can do these things just because there's a theory no like Congress wrote this you dig me so long story short the rule the rule the 72-hour rule this is under the truth and lending act which is the truth in the lending you dig me and it states that certain types of credit agreements can be canceled within three business days okay so here's the key point if you act within the 72-hour window you may not be legally required to pay back the debt okay now here's the here's where it pertains to home equity loans and second mortgages certain refi refinance loans and some types of personal loans okay now you also could argue that it doesn't apply to auto loans you can also argue that it doesn't apply to credit card purchases and you you can also argue to most firsttime home mortgages okay now there are some theories out there where it essentially can work for any consumer credit transaction because technically the company doesn't have ownership over the debt dig me let's break that down right now okay when you look at this a lot of times the lenders will say okay well the auto loan doesn't cannot apply under the subsection because um number one right theend only applies to secure loan Lo with a lean on your home okay so essentially it says it applies to home equity loans refinance the mortgages and certain secure transactions invol in involving a primary residence okay and it also says that auto loans are not secured by primary primary residents so they do not qualify for this recision right this is something that they will do to challenge your right of recision rights Okay so they'll say okay you can cancel a home equity loan within 72 hours but you cannot cancel a auto loan under this rule okay also they'll try to challenge and say car dealerships are oneandone financing contracts so essentially what happens is auto loans are finalized at the time of signing and immediately assign to the lenders okay Banks or the finance companies it says also says unlike mortgage refinances there's no cooling off period okay and once you sign the contract and drive off the lot you are legally bound to the loan agreement okay you about to get me in a sec I'm about to get you in a second so once you sign the deal the deal is final okay according to it being a a uh according to it being a a a um if it was a actual oneandone financing contract okay unless the lender makes an error or engage ages in fraud I hope y'all following me here about to debunk this and it also says that our loans are considered purchase money transactions so truth and lending act recision applies to certain types of credit transactions and not direct purchases okay a purchase money loan autof financing is excluded from the 72-hour rule what this means is that if you finance a car at a dealership you cannot use the 72 our rule to cancel it okay it also says that car loan cancellations depend on dealer policies not federal law okay some dealers offer a return policy okay but this is not a federal requirement and essentially once the lender funds the loan the contract is enforcable and the recision is no longer an option what this means is that the only way you that you can cancel an auto loan is if the dealer fail to disclose material terms under the truth and lending act okay but can you still challenge the autol loan yes you can okay even though we talk about we've talked about this in our previous video about the ways that you can challenge the autol loone properly but here's the here's the essence as to why everything that I just said is complete you dig me because number one based off of our previous discussions and what we have talked about and where loans come from the fact that it's not a loan but our signature that created the credit wouldn't this mean that the loan is is not funded by the lenders right wouldn't this mean that this is technically not even a valid agreement wouldn't this mean that this isn't even a oneandone deal wouldn't this mean that this isn't a loan agreement would this mean that this isn't a financial uh they haven't give you any type of money at at all in the first place that's exactly what it means because the question I'm asking is is autol loan a valid agreement if the lender didn't actually fund it absolutely not okay because the lender did not provide actual consideration you dig me so in contract law for a loan to be legally binding it must meet the requirements of mutual consideration meaning that both parties must exchange something of value dig me and if a lender actually gave you money or or actually never actually gave you money but instead monetize your signature then they did not provide real consideration they didn't give you anything they didn't exchange anything with you are you hearing me now all right so we understand that the banks don't lend their own money under the Federal Reserve uh information under modern money mechanics when Banks make loans they create money and the bank simply simply credits the borrowers account with a deposit of the size of the loan this is in the modern money mechanics the banks don't loan you pre-existing money okay they created the credit using your signature as an asset and since the lender never risked anything they cannot claim that you owe them they cannot say that you're under a legally binding contract where in the contract it says that they loan you money that is fraudulent that is misrepresentation you dig me so if the loan lacks consideration okay given the fact that you signed a promissary note which is a negotiable Financial instrument under UCC 3-1 04 the bank converted your promissary note into credit and made money off of it without lending their own funds so back to the fact that this is things that they're supposed to disclose to you under the truth of Lending Act so essentially if the bank received something of value and the banks did not provide anything in return not being the money and they gave you a vehicle okay that they paid Pennies on a dollar for there's no Mutual exchange so there is no valid contract you dig me and you have a right to resend a contract that is not valid within 72 hours and within that 72 hours they have to prove that they have given you a valid contract they have actually loaned you money okay so part of that okay this is when you tap into to challenging them on whether or not they're the holder and due course under UCC 3-35 which is has the holder in Du Co rule where you have a right to challenge whether or not they have sold or security tized your auto loan and if they have they have no they they have no legal standing to collect payments from you number two if they cannot prove they own the original loan they may be you you will be able to challenge the debts and also at the same time when we talk about the truth of Lending Act and the vi ation fail failure to disclose the loan funding under the truth and lending act 15 USC 1601 lenders must disclose the full terms of the credit so we pull that up under 15 USC 1601 the top things says informed use of credit okay so they must disclose any and everything about the credit where the credit comes from how you are using how to use it and they must avoid uninformed Med use of credit and to protect the consumer against inaccurate or unfair credit billing and credit card practicing so again if you essentially have gotten money from the loan and you're going to challenge and you're going to make me pay again that is considered Fair Credit billing Fair Credit Card practices and this is all protected under the truth The Lending Act okay so if they fail to disclose these material facts then the loan may be under the truth and lending act okay so essentially I wanted to debunk that because a lot of times they'll try to challenge you and say oh they this is a oneandone contract or they'll try to challenge you and say oh well you can't do this because it's not through the principal dwelling okay which also means the primary residence which they're trying to refer to and say that it's only for real estate loans that is just a game that you're trying that they're trying to play with you okay and they try to make it seem like this is a different type of transaction than what a mortgage is but it's the same exact type of transaction because of mortgage they sell your mortgage as mortgage back Securities and that's when it becomes a that's when it becomes securitized that's when it becomes sold that's when they monetize your signature so not only did you guys fractionalize it but then you sold my mortgage to an investor okay so you made double money on my loan and then now you guys are trying to come after me for the money as well okay these are the things that you have to show to me and notify me of under the truth The Lending Act you have to give me the truth in your lending okay so let's just get back on track on what you want to do properly to be able to challenge under the 72-hour rule when it comes to debt discharge first things first you want to use your right to resend under the truth and lending act which is 15 USC 1635 if your loan qualifies you have three business days not calendar days okay to cancel it without penalty okay number two you must notify the lender in writing before the 72-hour period expires so again you want to rush this a matter of fact you want to have that letter already prepared you dig me and you want to send it fast number two under UCC 3501 which is the presentment of debt and conditional acceptance essentially say that um you can refuse debt within 72 hours if you properly condition your acceptance so entally uh uh you would send a conditional acceptance letter stating that you require verification of loan funding and full consideration within 72 hours or the contract is null and void so you have to give them an ultimatum hey if you can prove to me that this was a real loan and you guys gave me full consideration and and or that you guys have full consideration okay that you this is a legitimate agreement then we can continue but if not this contract is null and void okay and here's the aspect of debt rejection under contract law so if both parties haven't fully executed the contract you also may be able to cancel within 72 hours so if you never received full disclosures you can argue that the contract is incomplete and in is incomplete and unenforceable so again when we talk about any consumer credit transaction they did not follow these steps here and cannot prove that they have full consideration that they actually loaned you money if they cannot prove that they have given all the full disclosures within that prior to you signing for that loan then this loan is unenforceable so when you put give them an ultimatum and you say hey check me out if you can provide the proof of this then yes we can keep it going but if you cannot this contract is null and void now it it forces them to provide the disclosures it forces them to prove these things within 72 hours and if they cannot then it is null and void okay so now it forces them to perform now you have created a contract under ucc3 d501 which is now when you present when you give of presentment and you fall under the conditional acceptance you're saying under no conditions if you can prove this then we can continue but if not then this is a fraudulent contract and when they do not follow directions or they do not respond back they have acquest to that and when they acest to that you lose okay this is not legal advice okay all this is broken down and complete that guide the whole conditional acceptance process grab it down below it's only 47 bucks now how do you 72-hour rule to cancel de also before I kind of move forward if you haven't already likeed the video okay we at 14 minutes and giving you guys 14 minutes of some untapped game that nobody's giving you out there also leave a comment put the number 14 let me know that you got this far and uh because you're a real one okay and also at the same time man subscribe if you haven't already so the first thing you want to do is you want to send a recision notice to the lender okay if you don't know how to put that together I have templates in a complete that guide on how to put that together but if not you can go online and find a pdf online okay you then want to send a certified mail with a return receipt to ensure proof of delivery okay make sure you send a certified key language you want to use is say pursuant to my right under 15 USC 1635 I am exercising my right to resend this loan agreement effective immediately you are required to return any payments made and release any claim against my credit file dig me revert that back if you need to write that down okay then after you do that if the lender refuses to accept the recision demand full validation of the debt okay this is when you dive into 15 1692g which is the fair debt collection practices act section that talks about you challenging the validity of the debt and how you have a right to do these things and if they cannot Pro cannot produce the original documentation showing full compliance with the with the disclosure laws then the debts may not be enforcable okay so again you want to put them in a position where they cannot enforce this debt you want to put them in a position when you're challenging them on the proof of the information that they said that they have okay bet if you loan me money then prove it to me prove that you loan me money okay under these under this here we I know that you do not loan me money so how about you just tell me where you got the money from you tell me where you got the money from you tell me that you got it from your own bank and you actually gave me cash in hand then yes and I know you didn't give me cash in hand I know that you just did deposits which under 82 USC 18113 the definition of deposit is an unpaid balance I know that under the Federal Reserve Act section 16 I know that in modern money mechanics that you don't actually loan money but you create credit based off our signatures I know that when it comes to a mortgage right you sell it as mortgage back Securities and it's not that you loan me money you just type numbers or bookkeeping entries into my account and then you release a security interest of a home to me but you never ever gave me cash in hand okay you only gave it to me because you was able to monetize my signature okay you was able to sell my mortgage to an investor okay that's the only reason you participated in this transaction because you use me as as proof of income you use me as a way to be able to make more money the only way you can participate in Commerce is if I continue to sign signatures you dig me so when you st to challenge them on these things and they star to get to the space where they stop responding or they do not want to respond or they want to keep trying to send you uh uh letters and bills and things of that nature listen you don't have I mean I won't it's not legal advice or financial advice but if you do want to truly make this work okay this is when you have to start sending your challenges to the cfpb sending your challenges to the Federal Trade Commission and sending your challenges to the Attorney General's office okay banks will rarely tell you about this rule but if you act on this fast you can be able to cancel certain debts before they become legally binding now I'm putting this out there because this only will work if you would go through the full legal process meaning if you take these steps and you say boom you send you understand these laws first okay then you challenge them properly you you do the notice of precision if they refuse it boom then you want to challenge under the conditional acceptance and you want to understand that hey boom you guys refused it now it's discharged so now we're going to go into the fair debt collection practices act and I want you guys to validate the debt in full if they do not validate the debt then they're already putting their in a bad position okay and this is when you dive into also when it comes to carch you want to challenge if they're the holder in due course okay you want to challenge the fact that your promissary note wasn't the wasn't was an actual exchange you want to challenge that they giving you the proper disclosures prior to the agreement and these are things that you can use as this is what's going to go in the right recision letter or if not if you don't catch them in the right recision letter then you put it in the fair Deb collection Practices Act letter which is the debt validation letter okay remember you have a right to challenge any debt you have a right to challenge any company or whether or not they've actually loaned you money you have a right to do all of these things they may try to make you think that you don't have these rights or they may try to give you this make it seem like this is a reverse trust scan making you think that you can only uh move to the beat of their drum or that they are in control but all of that is all of that is something that keeps us from actually taking action and empowering ourselves and letting us know that we actually have the power that is the whole point that's the whole system keep keep you distracted and keep you from actually trying to move forward in life because of these things that we are afraid to do okay and if it gets to a situation where you have to take them to court build your evidence first by going through these processes and take them to court if you take them to court if you need legal representation do that tap in with legal aids in your state okay but other than that um thank you guys for watching this video like comment and subscribe I appreciate you for watching this video if you got all the way to the end comment the word discharge okay if you want more knowledge more information check out the complete that guide down below it's only 47 bucks I have all the templates guides over 200 GB of data and more importantly I have my course instruction to me breaking down these laws and help you understand these laws even more number two if you want to work will be 101 no I don't particularly work on debt discharge this is a more uh finan financial literacy focused uh uh mentorship okay so we're going to focus on credit I can also teach you the aspects of consumer law and bring more clarity around my videos and things of that nature but I'm going to be focused on getting the results and that starts with your credit okay CU you can do these things but then your credit might still get shocked and that is okay that doesn't it's not the end of the world if your credit gets messed up from doing these processes because your credit getting messed up is not really that bad in the grand scheme of things if you know how to fix your credit okay so boom fixing your credit getting you funded so that you can be able to invest in your business and if you don't know how to invest in business or how to get started then I will help you get started in the online business space okay number three if you need that legal help responding to a debt lawsuit that is solo suit down below where you can pay up front and they'll pretty much generates letters the debt validation process for you and if you're in a situation where you're being sued by a debt collector and you need to take immediate action you don't have time to learn check out solo suit and then lastly check me out on Instagram follow me there post daily content for motivation financial literacy debt dis charge content and more things in that nature and also so that you can get updates all right again drop a comment below if you've ever used the 72-hour rule to cancel the debt what questions do you have let's talk about it also if there's other things that you guys want me to talk about drop it in the comment section down below but don't forget to like subscribe and turn on the post notifications so that you don't miss my next video on debt discharge credit funding and ultimately building your Financial Freedom thank you guys once again I love you and I'll see you the next one bye