I was doing research on Payday Loan settlement. I was drowning in Pay Day Loans so I signed up with a Pay Day Loan Settlement company. I really wish I made my way to this forum sooner!
All of my loans are illegal in Massachusetts:
Big Picture Loans
American Web Loan
After I signed up with the settlement company they went ahead and sent out all the cease and desist letters, the revocation of ACH etc. All of the payments stopped. I realized after I forgot about 2 loans I hadn't included: Spot Loan and Amplify Funding. So my research brought me here and I emailed them both yesterday to stop the ACH withdrawls and I also emailed that they are illegal. I got a reply from Amplify saying they are a tribal lender and state laws dont apply etc. Now this has me thinking. Do I even need the Settlement company? I could probably do this on my own? I figured out I have overpaid with Lendgreen and sent them an email yesterday. Haven't heard back, but not sure I will since I'm with a settlement company. Now, I don't know how to get out of the settlement company contract. I've only paid 1 payment to them. Any advice? Should I stay with them or would I be better off doing this on my own?
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.