Can You Teach Me How To Find A Good Credit Counselor?
Posted on June 23, 2009 at 11:49 pm
I have a couple questions in my search for the ideal credit counselor or counseling agency
What are the credentials i need to look out for?
How do i know if the company is legitimate?
Are the non-proft companies better than the for-profit ones?
I'll think of more questions and post them later, but here they are for the meantime. thank You, and have a nice day!
Posted on June 24, 2009 at 2:12 am
Accreditation matters, that's for sure.
It helps a lot if they are affiliated with a national governing body. An example would be the National Foundation for Credit Counseling (http://www.nfcc.org). This organization in particular lobbies for financial responsibility among its clients and encourages their member companies to deliver high-quality educational and counseling services on financial matters
Aside from that, you also need to find out if they are accredited by an independent third party, such as the Council of Accreditation. This ensures that the appropriate "checks and balances" are included in order to support you, as a consumer.
If the company also states that it is a non-profit agency, they need to be a 501(c)(3) non-profit community organization.
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Posted on June 24, 2009 at 2:45 am
The more legitimate and more reputable ones also offer a wide range of services aside from Debt Management Plans only. DMP's, as you may know, serve as payment programs for your creditors, specifically designed to pay off your debt at a lower interest rate for an extended period of time.
Typically the more decent agencies offer services like:
-money and credit management education
-budget planning
-counseling and education programs for: credit and debt, bankruptcy, mortgage delinquency, and buying a home
Posted on June 24, 2009 at 7:10 am
A good credit counselor--or counseling agency, for that matter--must also have a satisfactory rating with the Better Business Bureau. It helps if the company has a low rate of complaints among their previous customers. After all the BBB aims to uphold fair and trustworthy business practices, and ensure utmost customer satisfaction.
Posted on June 24, 2009 at 8:05 am
Credit counselors ---- the good ones at least ---- don't just ask for fees up front. The more legit ones explain their fee structure to you thoroughly. if they say that your first payment will be used for them ---- meaning it wouldn't be used towards your debts right away ---- look for other options elsewhere!
the legitimate non-profit agencies usually state that they will not charge you fees, or at least ask for a small payment.. Be wary of those agencies that say they are non profit and ask for voluntary contributions. .and other fees in the long run. Ask for a quotation of their fee strucure to verify the information.
Posted on June 24, 2009 at 8:54 am
The Federal Trade Commission also shares their input on this, in an article here:
http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre26.shtm
Posted on June 26, 2009 at 12:37 am
Here are some suggestions I found written by Steve Bucci. FYI he's the president of the Money Management International Financial Education Foundation, among other accolades.
* The CCCS preferably must be non-profit
* It should have been in business for at least ten years
* The organization must be accredited by the COA, or the Council of Accreditation, or the ISO (International Standards Organization).
* Aside from these, they should also be certified by an independent organization.
Posted on June 26, 2009 at 12:48 am
ya i'll try
Posted on June 26, 2009 at 3:06 am
What's the difference between the for-proft company and the non-profit one in terms of services? Are the non-profit ones any less legit?
Posted on July 1, 2009 at 3:29 am
Catalina, not necessarily. The non-profit agencies basically function as a "public service" for individuals. I may be wrong, but this is actually an integral part of preparation to file for bankruptcy.
Unfortunately, there have been organizations that claimed to be non-profit yet have devised various ways to gain profit at the expense of the customers.
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