I just received a letter from one of our collection agencies saying if we don't pay the account or make arrangements by Sep. 16, they will send it to an Attorney's office. We are with a DS company and they know that. Is this just a scare tactic used by these people to get you to panic? We actually had one account that went to Zwicker first and now it has been sent to another CA. Go figure. People say it is rare to get sued but I seem to be reading about quite a few people being summoned recently on the forum.
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.