I have a loan with Mobiloans and another with Plain Green, among others. I understand that these are tribal loans and thus illegal, and in the case of Plain Green in particular, each of these two loans appears to report to one of the credit unions (TU). With Plain Green in particular, I have already paid the principal back and then some. What has everyone's experience been with some of these tribal lenders reporting negatively to the credit bureaus (particularly those that currently report) once you started taking the steps of informing these illegal lenders that you are no longer paying them (if principal has already been paid)? Do the collection agencies they use (if it gets to that point) typically report?
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.