I'm surprised that Peter Schiff hasn't figured out yet, that all bank loans are creations of new money. If you don't sign the promissory note, do you get your money? When you sign it, do you get your money? Even trade, your private money (signed promissory note) for their public money. You prepaid your loan, so there isn't really any loan to repay. Your repayment over the years is really a credit purchase of two kinds: 1) standard credit with the credit reporting agencies; 2) credit that keeps you from being sued for not making the agreed on loan payments. If you know what you are doing in court, they will dismiss the charges when you bring the proof of prepayment. You might have to sue the credit agency for messing with your credit rating.