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Potential debt reduction: Debt settlement may reduce the total amount you owe, providing relief from debt burdens. However, the fees of settlement and late fees can sometimes inflate your debt ...
They buy debt from healthcare companies, government agencies, and utilities. However, not every text or call from someone claiming to be with a legitimate company represents a real debt.
The debt settlement company will tell you to stop paying your creditors to give it negotiation leverage. You can expect your score to take a massive hit when working with a settlement company.
A portion of each payment is taken as fees for the debt settlement company, and the rest is put into the trust account. The consumer is told not to pay anything to the creditors. The debt settlement company's fees are usually specified in the enrollment contract, and may range from 10% to 75% of the total amount of debt to be settled. [13]
The Oklahoma Department of Consumer Credit (ODCC) is an agency of the state of Oklahoma. The department regulates the consumer lending business in Oklahoma by overseeing non-commercial credit, small loans, installment sales and usury. The department also investigates and licenses creditors of the state.
Working with a debt management company can result in less debt or a faster payoff — but there are often hefty fees, often up to 25 percent of the debt enrolled, attached to the services.
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