I got this email today from My Money Chest. I tried looking them up under the California Department of Business oversight to see if they had a license in california. I couldn't find it so I sent an email to My money chest asking for their information and this is what they sent me.
The customer service department does not lend to states where pay day lending is illegal. You also sign a TILA (Truth in Lending Agreement) before the funds are issued to make you aware of your responsibilities. We are the payment services department for the servicing center that arranged your online loan or line of credit and we are not a 3rd party which would require a license.
What does this mean? They are saying the don't need a license because they are the payment services department?? I am going to call the number tomorrow to double check on this, but I am assuming they are illegal?
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.