I'm wondering if anyone has had success using a debt management plan for payday loans? I currently have approximately $5,000 in payday loan debt. I'm on a debt management plan for my credit cards, which has been a really positive experience, and the promises that the debt management company for payday loans are making are very appealing. I'm working with DMCC Corp - dmcccorp
The one issue I'm having with them is that they are very adamant that I close my bank account and reopen a new account prior to enrolling to ensure that my payday lenders don't continue to debit my account. I did send ACH Authorization Revocation letters to each lender, as well as my bank, and received notice back from each lender that they had received my letter and would remove my ACH Authorization.
I don't want to close my bank account because I have direct deposit set up with 3 different jobs; I'm still waiting for a check to clear; and I have autodrafts set up for my monthly bills. As I'm sure you're all aware, starting a new bank account is really a pain.
My payday loan lenders are:
-Check N Go
Is it necessary to close my bank account and reopen my account? And, if anyone has any experiences with debt management plans for payday loans, please let me know!
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.