I just found out it is illegal to offer and accept Payday Loans in NJ. Basically, I am a just as guilty as the financial institution. One of the loans was sold to a collection agency. The initial loan was 300.00 and now they are trying to collect on 525.00. What is the best way to proceed with this without getting myself in trouble.
The collection company did send a letter, which I received yesterday stating they bought the loan. I was going to send a debt validation letter but not sure that is the best route considering the entire thing was illegal. My initial thought was to send a letter with a copy of the law and offer them 300.00 (initial loan)
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.