I'm a little bit in trouble with my credit card, and they are going to send it to collections, and eventually sue me for what I owe. However, from what I understand, banks create the money that they lend to you, so they aren't technically able to declare a loss of money truthfully in court. If they haven't lost a cent, what are they suing me for?

Does anyone have good source where I can find information on the banking system in Canada that would help me prove my case in court?

You're fucked.

And unless i misunderstood what you're saying, thats the stupidest argument I've ever heard.

Banks don't create anything. They make a profit by charging interest. Thats like stealing from a stores cashier, and trying to justify it by saying the store created that profit.

Collections is a pit stop before getting sued. My strongest recommendation is that you should try to talk to the bank and negotiate a settlement or a payment plan. If that doesn't work or if your account is already on its way to collection... then they will contact you and you should settle with them. If you ignore them, then they'll go to court... depending on the amount you owe.

Tell them you are a student/kid.. whatever and that you really intend to take care of this, but you need a payment plan and stick to that plan. Even $20-$30/month will be enough to salvage this situation before it gets worse. They might even want to settle on a lump-sum... single payment, which is much lower than the original amount. Ask a parent/relative to bail you out and settle this matter once and for all.

Trust me you don't want this to go to court. I have had a roommate go through this mess... only because he thought $700 was not enough to get him sued.

OMG LULZ @ YOU FOR BELIEVING RIGHT-WING FINANCIAL SHIT (FROM THE US NO LESS).

"Banks create money to lend to you, so you never have to pay them back."

"Income tax is 100% voluntary, there is no law requiring you to file."

"The Federal Reserve is a Jewish conspiracy. The money they make isn't real and you don't have to pay it back because it's not real and it's Jewish."

etc... etc...

1) I cant fix that one. It's just wrong, no matter how you look at it.

2) There is no -constitutional- law. They didnt have enough votes to pass it, but they did anyways. And it was only supposed to affect the top 10% bracket. And it's technically supposed to be paid in gold, which americans no longer have. Either way, it doesnt change the fact we have to pay it. And if some fancy pants lawyer finally found a legal loophole to get around a client paying income tax, well...they'd just have to shoot him. If that secret got out, the country would pretty much fall apart overnight.

3) Jews aren't people and therefore arent eligible to enter into legal contracts. Unfortunately the federal reserve isnt jewish in and of itself, so you still have to pay it back.

Wow.

As a well educated person in things like this, let me explain how banks make their money.
First, banks don't "make" anything. Their INCOME is from interest-baring accounts from customers (credit cards, personal loans, house loans, etc etc etc.) In order to let people loan this out for a set percentage of the loan, they need the actual money, right? Well, they take the money that people have in the bank (in the form of checking accounts, savings accounts, CD's, etc) and put that money towards letting other people barrow it. That's why banks pay (in the form of interest) people who have their money in the bank (usually in the form of savings accounts or certificates of deposit). Now if you borrowed, say $100,000, you will owe them the $100,000 back plus the interest (say 10% to make it mathmatically easier). Now you owe $110,000. If you don't pay the bank back the capital (amount you were loaned) plus the interest (where they make their money and pay for the interest they pay other people who "lend" them money), they lose money from a potential profit AND can't pay back whoever they borrowed it from. Of course, it's not like someone's bank account dipped when you took the loan, but you get the idea.
Hope that helps explain the economics of banking.

SmartTart