I got this response from one illegal tribal lenders (Big Picture Loans). I have paid the principal borrowed and in fight with them to mark my account as 'Paid in full'. This is their response -
'Please understand that The law that applies to situations where state and federal laws disagree is called the supremacy clause, which is part of article VI of the Constitution. The supremacy clause contains what's known as the doctrine of pre-emption, which says that the federal government wins in the case of conflicting legislation. We are following federal laws regarding your loan and we’re willing to work with you regarding the balance but unfortunately, we will not be able to dismiss the debt. Please reconsider working with Robert to resolve the account. You’re only 10 days past due at this time so we do have some time to work with you however, once the account is transferred to a 3rd party, any and all assistance that we can provide will not be transferable.'
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.