When collection companies call and harass you it's because they have bought your debt from whoever you originally owed. They pay pennies on the dollar in the hopes that they can collect the full amount and make a killer profit. That is why they tell you you can only make the payments to them, not to who you had your contract with. Now, since they bought your debt, that means they took it upon themselves to pay it off. So now you supposedly owe the debt to them. Now here's my question. If they can not produce a contract with your signature on it, stating that you owe them...the collection agency, then how can they legally hold you to the debt? You didn't ask them to pay off your debt, they did that all on their own. I've heard from many sources, including attorneys, that without said contract the collection agencies can not legaly force you to pay them.They collect simply because they harrass and scare people into paying. Any thoughts on this?
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.