I got into some trouble with some illegal pay day loans and ended up with fees and having to change my bank account. Due to this I am past due on my credit cards. I have a total of five credit cards and will be paying off two and closing the accounts. The other three I am going to keep which are a Capital One Visa card, a Best Buy store card and a Care Credit card for dental expenses. The ones that will be closed are a Credit One Visa card and a First Premier Master Card.
My first question is can a credit card turn into collections if you are making good faith payments even if you can't pay the full amount currently due?
I am also sending letters to all of my creditors stating to stop calling my at my work, home and also to not call any friends, relatives or any references that are on any account. I will be both e-mailing those who have an e-mail contact number and also sending all creditors via certified mail, return receipt required.
My second question is if the companies continue to call me, is this a violation of any federal or state law? I live in Washington State.
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.