I took out an $800 loan with Big Picture Loans to cover some emergency expenses. Shortly thereafter, I noticed online that they are not a legal lender in the State of Arizona, and that they are obviously in violation of Arizona State usury law.
I have not made any payments to them yet and currently have an overdue balance, hoping that this will force them into agreeing to a new payment plan of the principal balance only.
However, my questions are:
- What are the repercussions if I do not pay them anything?
- What protection can the State provide a consumer like myself in this situation, given that I took out a loan from an illegal / unlicensed lender?
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.