I recently paid the original creditor in full for a past due debt. The original creditor sought a third party debt collector, SourceRM to collect the debt back in November 2010. Around the same time payment was made to the original creditor, the third party collection agency placed an adversary account on my credit report. I spoke with the original creditor's "Executive Services", who stated the person who took my payment should've referred me to the third party collector and she wold advise the third party collector to update my credit report as Paid In Full.
If I paid the original creditor, how can a third party collector report anything on my credit report? I've contacted the Executive Services via email and CC'd the third party collector informing them of what happened, but the third party called to say we've had the debt since November, even thogh you've paid the original creditor, all they did was transfer the money over to us.
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.