I am hoping that someone can answer a few questions for me (living in Canada).
1. When a file goes to an apparent collection agency from a company, does that mean they have been hired to recover or they have bought the debt? The company in question is ARC Recovery Services.
2. I was under the impression that when a file goes to a collection agency, they cannot cannot charge or keep accumulating interest, is that correct?
3. They got quite nasty when I ask them to provide debt verification and hung up on me. Why would that be? Why do they have a problem doing so?
By signing up a debt 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 payoff 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.