I would like to remind everyone that when a third party debt collection company purchases your information, you have no contractual relationship with them nor any financial obligation with them.
They try an convince you to establish a contract with them through deception. Do not agree to anything. If a debt is in collection, the original creditor has charged the debt off and expensed the debt on their tax returns. They have been made whole for the principal, and are only entilted maybe to the interest on the loan.
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.