So, here's a question-- a friend got an online loan from Action Payday. She currently has paid 1200 on a 400 dollar debt (yes, I have yelled at her for not keeping a close eye on things), but today we went to the bank, closed out the account and ensured they can't take anymore.
Now, As far as I can see and the Department of corporations can find out, Action Payday isn't licensed in the state (they're supposedly located in Nevis, West Indies).
Can they sue for any recovery at all? My assumption is you could pretty much deep six any small claims suit by just pointing out that A. they're operating illegally in the state and B. they have already recovered far more than the original loan by illegal methods.
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.