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Most psychics in the west say so, because that's what their cultural upbringing is (free choice, liberalism).
If you ask eastern guru's, I'm sure most of them would say our circumstances are based on good and bad actions/karma.
What we are looking at with these explanations is a fundamental difference between west and east. One believes we come here out of free will, free choice etc. and the other believes the soul/self is trapped in the web of karma and has to get out. This is a major difference.
Who is right? I don't know.. But I do know that their religious/spiritual beliefs are shaped by their cultural upbringing.
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