I am currently helping out a friend who has taken out a couple loans and is in a bit of trouble due to unforeseen circumstances. We currently reside in Tennessee, and my friend has taken out loans with Zocaloans aka Rosebud Lending and Speedy Cash. After doing some research, I have found that Zocaloans/Rosebud is a tribal lender and does not have a license per the TN Dept. of Financial Institutions, and I believe because of that it means that they are operating illegally. Does this mean that there is no financial obligation to pay anything other than the principal, and is there anything that needs to be done legality-wise or should we simply follow the guide stickied to this forum?
As for Speedy Cash, I'm still in the process of verifying that they are a legal lender. According to my friend, the loaner has already sent the debt to collections and is currently dealing with that mess. If Speedy Cash turns out to be an illegal lender, what steps should we take to deal with the collectors?
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.