An Unprecedented Grassroots Effort Could Put a Stop to Fraudulent Debt Collections

Federal agencies like the Consumer Financial Protection Bureau might make headlines, but they don’t always make progress. Sometimes solving problems is up to the people themselves.

Well, there’s an unprecedented grassroots effort to bring to heel the profoundly abusive banking system and its main collaborators in the courts and in debt-collection law firms.

Longtime monetary-reform advocate Mickey Paoletta of Mortgage Defense Systems in Mechanicsburg, Pa., ( has helped scores of individual homeowners being sued in foreclosure proceedings expose their mortgage “loans” as invalid in court.

He’s put in long hours researching and writing legal filings, helping embattled homeowners/consumers understand and fight the mortgage-banking (and credit card) racket.

But now, due to a little-known but potentially powerful legal option called the “King’s Bench” jurisdiction, he’s taking things to the next level, countering a powerful racket consisting of debt-collection law firms, banks and other lending agencies, and the courts—all of which play a role in creating and/or trafficking in forged debt documents.

State and local media tend to cover up rather than cover such matters. The newspapers take part in the gravy train by printing paid legal ads to publicize foreclosures.

But law firms reap the most. One Pennsylvania firm that only handles debt collection made $72 million in 2016 alone, harnessing the labor of 150 employees to make it happen.

So, given the collective strength of this financial-legal-media syndicate, Paoletta is leveraging the King’s Bench, a British law carry-over applicable in the commonwealths of Pennsylvania and Virginia, and in at least five other states.

According to Paoletta, under the King’s Bench, the Pennsylvania Supreme Court must, as he put it, “rein in the lower-court judges and review their decisions. And not just the judges, but the lawyers themselves, to make sure they’re following their code under the bar.”

That means sanctioning judges and attorneys who do not lawfully uphold their duties.

Moreover, the King’s Bench presses the state’s high court to look at the substance of this matter, especially forged notes being wielded against an unwitting citizenry to dispossess them of their lands and homes.

This could effectively free ever-larger numbers of Americans from the modern-day slavery of imposed fraudulent debt, in one fell swoop. Accordingly, Paoletta recently filed a 15,000-word King’s Bench complaint with the Pennsylvania Supreme Court.

Explaining the complaint, Paoletta told this writer: “When judges ignore securitization audits and document-examination reports that prove the use of forged and fraudulently created documents used for foreclosures, and when these judges grant summary judgments to debt-purchasing attorneys, what you have is a conspiratorial enterprise that is suppressing evidence, and which obstructs justice by denying citizens their due-process rights to file litigation through, but not limited to, the Fair Debt Collection Practices Act.”

The federal FDCPA law turned 40 in 2017. Although it’s been amended, its core purpose is to eliminate abusive consumer debt-collection practices, promote fair debt collection, and to help consumers dispute and validate the accuracy of debt information.

Paoletta’s Supreme Court complaint also states: “As a matter of fact, there are as many as several hundred aggrieved former homeowners in Pennsylvania alone that have suffered … through the methods and tactics of these … respondents.”

Another complaint passage states: “We, the People have suffered enough at the hands of these attorneys and their supporting judicial officials. … The people have lost their property through illegal Sheriff’s sales, and the Sheriffs declare that [they] take [their] orders from the debt collectors and do not really care about forged and fraudulent promissory and mortgage-foreclosure documents.”

The current practice of bundling mortgages into investment packages, and in trumping up foreclosure proceedings to entrap struggling homeowners and in effect steal their property, has become hard-wired into society to a shocking degree.

But by exposing specific acts of forgery—like Digital Image Extraction, where people’s signatures are electronically scanned and pasted onto documents that the signatory never signed—Paoletta feels the people can finally turn a corner on this issue and make real progress.

Meanwhile, it’s important to stress that the banks’ ledgers are the holy grail. The banks routinely refuse to produce their genuine ledgers in court; that’s significant because the ledgers can prove, once and for all, whether banks actually part with any assets whenever they issue what we call loans.

Simply put, if the banks’ net worth or asset balances are not reduced in the loan process, then the banks never actually parted with anything in the first place. The implications of that—in a nation with a debt-money system, where the interest (debt) and the available goods and price levels always exceed the total money supply—are monumental.

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