I have an old debt which is out of SOL with Midland the current CA for Providian card. Debt has been validated. They have sent a letter that offered 40% off of nearly $3000 debt. If paid the amount, they said they will make the account "paid in full" on my credit report. It's a normal CA letter with that offer, no signature of any kind, just their name and phone number.
What do you think about this offer? Should I take it? What are the consequences?
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.