Recently there has been a hidden "identity theft protection company" hiding in the internet payday loan applications. When the money is deposited into your account you are hit with a membership fee to this company. They will continue to take a fee every month unless you cancel. When you cancel they refuse to refund the initial fee of around 35.00. So when your loan for, lets say, 200.00 is due and you pay the 260.00 or so. You really only got a 165.00 loan! What if you had to come up with 200.00 to cover a check. Now you are really screwed. You have to file a fraud claim with the bank that takes weeks and you might not win if you signed electronically and did not see the tiny hidden line in the contract. Another reason to steer clear of internet lenders.
By signing up for counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the pay off amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.