I sent an email to Lakota Cash, informing them that since they were not licensed in the state of Louisiana that I will only repay the principal I owe them, which is $430. So a collection agent responded to me and said that I owe $810 ($600 principal, $180 interest, $40 for telling them I put a block payment on my account?). She also referred me to this part of the loan document which I signed:
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.