I just got off the phone with my bank. I have gotten myself into payday loan hell. These are all internet payday loans. I closed my account so they would quit draining it. Now I have gone through a divorce and am in no positon to pay back what I owe right now. The guy I spoke with at the bank told me that payday loan companies were able to get some law passed that protects them. They can sue you and you may have to pay up to 25,000.00 in fines and serve 5 years in jail for breaking the contract. Is this true? It does seem to me these loan sharks should have such protection. I'm not trying to get out of paying my loans, I just can't right now. Has anyone heard of 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.