Pay for delete agreement is where you agree to pay off your debt in full or negotiate to settle your debt with the creditor/collection agency in return of their promise to erase all information on this account from your credit report. You'll need a Pay for Delete Letter to get the promise in writing. A sample format of such a letter is given below.
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.