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It will hurt your credit score surely. Your score can drop by around 125 points. But it will depend upon your existing credit score. If your score is around 700, then it may drop by 90-100 points.
prompet
it depends on your status before the settlement. If you are paying off a collection account, your score has already taken a hit. If you were current on your account, your score will tank major time because you are not paying as agreed. It will hurt you for a least a couple of years.
http://www.debtconsolidationcare.com/paydayloan/dealingwith-illegallenders.html
PDL's are ILLEGAL in the following states...
AR, AZ, CT, GA, ME, MD, MA, NJ, NY, NC, PA, VT AND DC
OH AND NH have very restrictive low cost interest rate laws.
SOL for all states
http://www.debtconsolidationcare.com/statute-of-limitation.html
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