Posted on
September 21, 2008
at
12:30 pm
I heard that many of the credit counseling services are actually owned by credit companies,. meaning they are not truly putting the needs of a debtor first, but are protecting credit originators first.Is this true?
Posted on
October 23, 2008
at
12:36 pm
Many programs today to help you get rid of debt ARE actually created by creditors themselves but NOT owned by them. However, this does not mean they are not trying to help debtors. Of course they are in the business to make money not loose it, so they rather come up with programs to benefit both parties. This way the borrower can take advantage of these programs to get out of debt, and the lenders can recapture the orignal priciple invesment instead of loosing it.
Posted on
November 21, 2008
at
5:17 pm
I agree with Sebastian, the borrowing companies are no dummies. They have a reason for investing in debt reduction counseling. My additional thoughts on whey they do it is... 1) It just looks good, from a marketing perspective. They are seen as the good guy and softens their reputation. You are less likely to speak negatively about your creditor if they are seen as helping you out of debt. 2) Delinquency costs them money too. Debt collection has many costs for the fianancial institution like... 3rd party debt collectors, write offs, and court costs.
