I'm not sure what state most of you all are in, however, I'm in North Carolina. When I filed a Complaint with the AG office, I was able to speak to a rep that represents these types of cases almost immedately.
They sent a C and D letter along with the law here in North Carolina. Basically, the terms that NC has set - it doesnt matter which state THEY are in, it matters the state YOU are in. So, because I live in NC, and they are issuing loans to residents of NC, they need to abide by NC law. it was almost a 3 page letter.
They keep contacting me after the C&D letter, which is illegal and has a 1K pentalty for every attempt to contact after the C&D letter is sent.
To answer the person's question about credit reporting - I am not sure about YOUR state, but I specifically asked this to the AG office. It's an illegal loan - therefore, reporting to the credit agencies on illegal activity??? STUPID. She told me to pull my credit reports and if it's listed they would personally handle it.
Further, for collections - they have to prove you intended to *walk away* from your loan, or obligation. If you contact them, which I had the AG office do for me, and tell them I was more then happy to pay - as long as the terms are set within the legal limits of the law - proves I'm not walking away. It really helps if you actually talk with someone at the AG office when you do something, ask questions - "what is the law around this?" and they will bluntly tell you.
My loan didn't originate with CC, however, CC agents were there every step of the way.... the originating loan company is under Federal Ingestigation for Fraud - and the owner has done time for mail and loan fraud to my understanding. So most of this doesn't look well. Neither were upfront on the fees - when I was told 50 for fees, CC's agent made it seem like it was 50 dollars. No, it was 50% of the loan....
I understand contracts were signed, but if they are illegal to start with - well... at least that's how the person in the AG's office explained it to me.
I also love when CC tries to call me, I accept the call, so I have records of them contacting me after a C&D letter, and they hang up on ME.... unreal. Don't lose your cool, don't cuse and don't be nasty. It will come full circle.