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Credit Counseling Companies
Credit counseling companies are not always what they appear to be. While many credit counseling companies, both for profit and not for profit, are very legitimate businesses with only the consumers best interest at heart, some unscrupulous operators are giving that industry a bad name. A few issues have arisen over the last couple of years that relate to the actual status of some companies that claim to be not for profit, how money they charge consumers, and who exactly pays the costs of some of these firms. Credit counseling companies in a number of states have drawn the attention of the Federal Trade Commissions office which has so far as to shut some of these businesses down completely and others have been fined and threatened with similar action if they do not change some of their practices. These charges have shone a new spotlight on a segment of the financial services sector, which had been operating with little attention, and out of control, according to some knowledgeable observers and industry watchers.
Several credit counseling services that have been under the Federal Trade Commissions magnifying glass are the National Consumer Council which has been masquerading as a not for profit agency while simply raking in profits like they were going out of style. One of the most famous or infamous amongst this group is Ameridebt that was shut down for defrauding individual Americans who were seeking debt relief of millions of dollars in hidden fees and charges. Other for profit companies providing credit counseling have also been exposed as serving several employers as they receive funding from the credit card industry to cover all of their overhead costs. Not only is the money they receive from clients pure gravy but also a lot of observers are questioning their loyalty to the people that they are in business to serve. Several class action lawsuits are already winding their way through the court system on this apparent conflict of interest.
Another major area of contention has arisen about the validity and effectiveness of the whole credit counseling process on the credit rating of the individual who goes through this process. There are a few flaws in the current process that actually make it harder and longer to regain your credit through this process than even through bankruptcy. If the intention is to avoid bankruptcy shouldnt credit counseling ameliorate this situation rather than making it worse? There are plenty of great credit counseling firms in the marketplace. Just be sure to do your checking first because sometimes credit counseling companies are not what they appear to be.
Books On Credit
Ask them as well if they have any brochures or materials about their services that you can pick up or order online.
Ask these questions to your counselor: Is there any monthly charge, set up charge or penalty for leaving the program? That doesnt mean that older Americans or senior citizens dont have similar problems, it just means that it makes more sense than ever to deal with your problem earlier rather than wait until its too late. In the event that you are denied credit, the creditor must provide you with a written statement that includes the reason your credit application was denied. Once that is complete you can once again begin to use credit as a mechanism to finance your needed purchases. The end product will likely be very close regardless of which type of organization you choose.
At least there are debt and credit counseling services for citizens with consumer debt to contact and talk to about this very serious situation.
Are these compulsory? Work with a reliable agency so that you can get the most out of the service. If your income decreases then you must spend less and not borrow more. These charges have shone a new spotlight on a segment of the financial services sector, which had been operating with little attention, and out of control, according to some knowledgeable observers and industry watchers.
If you have established a bad credit rating there are steps that you should take immediately to begin reversing the action.
When you already have a high debt ratio you may find that you dont qualify for any type of new financing, including a bad credit loan. This will be helpful in determining what you need to do to improve your credit rating. If companies can look at your credit history, should you not be able to as well? You might want to consider consolidating two or more credit cards if you have them. |
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