I recently took out an online payday loan to help cover unexpected expenses. I just found out that they do not have a CAB License here in Texas, they do not have a membership with the OLA (even though their website says they do) and their offices are located in Costa Rica. I sent them a letter letting them know that I just found out that the loan contract was not legal & binding here in Texas, because they don't have a license. They said that it doesn't apply to them, because they say that the contract was executed under the Governing Laws of Costa Rica, but the contract does not state that, infact nowhere does it state that they reside in Costa Rica and I was not informed of this at the outset, if I had known, I would have never proceeded with the loan. I offered to repay just the principle of $300, but they refused saying that I signed a legal & binding document. But how can it be legal & binding, because they extended a loan illegally, they are based outside of United States & no where on the contract, website or verbally was I informed they are located in Costa Rica. What are my options?
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.