|
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.
Clean Credit Repair
Some of these types of companies are: Credit card companies Property companies (for example if you are looking to rent an apartment) Bank Loans of any sort (i.
Once we realize that it is too late. Debt and credit counseling services offer professional and timely advice to help save your credit rating, your car, your home, and even your life. What self-respecting teenage boy can be without the current pants or running shoes? Take your time finding just the right debt settlement company for your needs. More likely than not the recommendation will be bankruptcy protection or formal debt consolidation.
Therefore it is imperative that you are fully aware of what is on your credit report.
You should also ask them what their fees or charges might be, both upfront and as part of any on-going proceedings. If you have not seen your credit report and have been denied by a creditor, you should get a copy of your credit report and analyze why you were denied. Credit reports often have mistakes on them and you are more than welcome to dispute any items you do not agree with.
One of the great ironies of our day is that at a time when more and more of us are in serious debt and have credit problems that it is still sacrosanct to talk publicly about having a debt problem.
There are two types of debt counseling firms, one is a profit making company and the other is a not for profit organization. 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. If you have negative items on your credit report it is wise to start changing your payment habits immediately and start working towards good credit now. In that case the debt counselor will help you get organized for that process. There are many ways that you can successfully manage your debt so that you can rebuild your credit rating. Community members frequently ask the question why an agency would work without a fee. |
|
