Posted on
June 22, 2009
at
11:29 pm
I thought I read somewhere that their services are usually free, if so, are they being paid by an NGO or the government perhaps?
Posted on
June 23, 2009
at
4:24 am
you mean non-profit agencies? ive read somewhere that many of those were closed because the authorities found out that they were using the "non-profit organization" status to evade consumer protection laws and to convince unsuspecting consumers into debt management plan enrollment. how do they profit from it? they get a percentage of what the consumer pays on the plan.
Posted on
June 23, 2009
at
4:30 am
they also profit from fees because when a consumer enrolls in their program, sometimes they are unable to pay their bills on time--which triggers penalties.how? in a typical debt-management plan, the consumer agrees to pay the credit counseling agency a certain amount each month (which is meant to pay the bills). this is in exchange for credit card companies possibly waiving late fees or lowering the interest rate. if the agency has successfully convinced the consumer to sign up to that plan, the credit card companies give the agency a percentage of the amount repaid.
Posted on
June 23, 2009
at
5:02 am
you make it sound like a bad thing or a scam. is it?
Posted on
June 23, 2009
at
5:08 am
well not all, just some.im sure there are many credit-counseling agencies that provide honest service, it's just that the industry,as of the moment, is largely unregulated, you'd just have to do your homework and be careful not to be fooled. if you are in debt and need to some advice or direction, and you're sure that credit counseling is the debt solution for you, shop around for several agencies first before selecting one, also don't forget to check the agency's standing with the BBB.if it is advice that you need for now why not fill out one of those forms that you see around and speak with a professional debt consultant for free.
Posted on
July 23, 2009
at
3:22 am
Certain credit counseling agencies actually work in cahoots with creditors.They earn a certain amount of money from the creditors from which their clients owe. These earnings are called “fair share” and at one time said to provide the agency with 15% of the amount that was obtained from the customer. More recently, the concept of fair share has lessened, and rates have dropped down to a range of 4-10% of earnings.
Posted on
July 23, 2009
at
3:45 am
How would you know if the Credit Counselor is working with a creditor, then? Do they tell you that outright?
Posted on
July 28, 2009
at
3:43 pm
They probably are not going to tell you that outright, but if they are marketing as a non-profit it may be safe to make that assumption.
Posted on
October 15, 2009
at
2:58 am
How much do consumers pay the credit counselors and how do they get paid?
Posted on
October 15, 2009
at
3:30 am
You mean how much do consumers pay the credit counseling agency? Okay, although most are non-profit their Debt Management Plan would cost around $25/mo. plus the one time set up fee.
