Just in case you wondered about them....

[Genenco]

Debt Consolidation Companies - Still as ugly as they used to be.


Since I first wrote about debt consolidation companies in early 1999, I have watched them grow into big business. They used to be the biggest advertiser on the internet back in 1999, now you can see TV commercials about these guys more often than you see Coca-Cola ads.
Some of my readers have written to me complaining that I am singling out one company, AmeriDebt, unfairly. Have I singled AmeriDebt out? Yes I have. Unfairly? I think not.

http://www.creditinfocenter.com/debt/DebtConsolCompanies.shtml

More there..and a whole LIST of agencies to avoid and avoid and avoid!

Oh and he's fair, there some he DOES trust!!!

http://www.creditinfocenter.com/debt/debtconsolidationtips.shtml

[SleeplessInMI]

Good article... I believe every word of it. Ironically there is a lot of profit in debt and these scumbag debt consolidation people will do anything to get their hands on your money. I was actually going to try one of them one time a few years ago, can't remember the name offhand. I filled out their little form and the next thing I know my phone rang almost immediately after I clicked the submit button.

After I told them I can afford to pay about $350 per month the guy then says "ok, we got a good plan for you... $950 per month and you should be debt free within 5 years!" I was like uh.. didn't you hear the part about only being able to afford $350 per month ???

The guy totally kept blowing me off and the next thing I know he was asking for my bank account details... we haven't even talked for 5 minutes yet and he is thinking I am just going to give that over?

So I told him I would think about it and crunch some numbers and get back with him and hung up. Not 10 minutes later my phone rings and it shows his company on my caller ID. I didn't answer... another 10 minutes it happens again... then again in another 10 minutes. I swear this guy blew up my phone with about 20 calls per day for the next week. Luckily I was moving anyways so my number got disconnected.

These companies can be worse than the actual bill collectors sometimes I think...

Also, while I was talking to this guy he I noticed he was very unprofessional. He kept mumbling things to himself and he would be swearing alot as he mumbled... and I mean hardcore potty mouth words worse than a truck driver!

[WhenThePawn]

I had a really bad experience with a credit counseling agency. After we did what we *thought* was thorough research (and we were also anxious to get the process started), we signed with a company. They were not the cause of our debt, that's for sure, but they did not pay even half of our creditors, which resulted in charges and late fees that we couldn't afford. Also meant harrassing calls from creditors. We were never behind with payments before then, we were just scraping by. It was awful. We quickly realized that a BBB rating means nothing.

It was a stressful time in our lives and 3 months after trying to work with the counseling agency, we filed bankruptcy. Interestingly enough, a few months ago we received a letter in the mail from the company. They filed bankruptcy and were referring customers to a different organization.

[FoolAndHisMoney]

I thought this one particular one were a bunch of @ssholes since I once applied for a job with them and they offered to pay decent money which I thought was good, then they said it was for a salaried position and was MANDATORY minimum 50 hours a week. Medical insurance was very expensive (I mean like $500 a month) and it didn't even kick in until 6 months of employment with them. Keep in mind there business is booming and has been for quite some time. They set these "cheap b@stard rules" knowing at the time there were a lot of people out of work. I honestly think that they lobbied more to pass the post Oct 17 law then the banks did. I know a co-worker that were scammed by one of them. 5 months of paying them and her creditors got paid for only 1 month. I still cannot believe congress is forcing debtors to see these low lifes. It wouldn't be so bad if the DOJ started arresting the officers of these organizations for stealing. I guess it may happen if the US Trustee approved centers start stealing too. We'll see.



What a big joke! I just read more of this link and it was cambridge that I applied for the job with. $7.3 million not bad for a non-profit. Use it in good health boys! You bosses can buy plenty more crack to smoke with that!

For example, American Consumer Credit Counseling reported paying its president in 2000 a salary of $462,350 plus just over $130,000 in benefits. In that same year, Cambridge Credit Counseling reported a net financial gain of about $7.3 million. In short, some agencies may be in violation of IRS rules governing eligibility for tax-exempt status. Credit counseling organizations should not qualify as non-profit corporations under IRS rules if they are organized or operated to benefit individuals associated with the corporation or if they are not operated exclusively to accomplish charitable or educational purposes.

[whtsamada]

I know so many people who got screwed over by one of these companies! When I was considering bankruptcy a few months ago I decided I would try one as a last resort and so far so good. I have paid them 3 times and so far every dollar has been sent to my creditors! It has been a pleasant surprise...I just hope they don't try any funny stuff in the future!

[Genenco]

I know so many people who got screwed over by one of these companies! When I was considering bankruptcy a few months ago I decided I would try one as a last resort and so far so good. I have paid them 3 times and so far every dollar has been sent to my creditors! It has been a pleasant surprise...I just hope they don't try any funny stuff in the future!

I am very glad you found a good one...I don't think I'd trust any except for CCCS (As I dealt with them before) and hope they aren't letting you down..

BTW, who are you with? May be worth recommending to other!

[WhenThePawn]

I am very glad you found a good one...I don't think I'd trust any except for CCCS (As I dealt with them before) and hope they aren't letting you down..

BTW, who are you with? May be worth recommending to other!

Quick question...what does CCC stand for? Only thing I can think of is "Christian Consolidation Company." The place that screwed me over used this title on one of their Web sites. Boo!

Glad someone has found a good company who is actually doing what they promised to do.

[whtsamada]

Well, about 9 months ago I contacted my local CCCS office because it is one agency that Suze Orman recommends. I went in for a meeting with a truly wonderful counselor. Because of my situation at that time I found that they could not help me but the counselor recommended I try to find some extra income and some ways to cut expenses (the usual drill). The woman was so helpful and she didn't charge me the consultation fee...a few weeks later she even called to check up on me. I felt very comfortable with her so when my situation changed about three months ago I called to see if I could set up another appt. Much to my dismay I found that the office had been shut down because another company had taken over. I decided to go ahead and give it a chance since my only alternative was bankruptcy. The company is called Money Management International, www.moneymanagement.org. I was looking at your posted article and I noticed Money Management was on the negative list...I'm not sure if they are the same company or not but so far I haven't had any problems. They have sent all the money I've paid and have done so on time each month. I guess I will just have to hold my breath and see how it goes!

[whtsamada]

CCCS - Consumer Credit Counseling Services

[WhenThePawn]

CCCS - Consumer Credit Counseling Services

Duh...my face is red. I figured it out and you responded before i could make friends with the delete button.

[edwards2]

I have heard of a lot of consumer credit counseling/debt consolidation companies because I work for the BBB in Germantown, Tennessee. Very few of them deliver what they promise but the one thing you want to do before you even consider one of them is talk to your cc companies and see if they will do business with them. Debt consolidation has been around long enough so the cc companies pretty much know who they will do business with. You cant assume anything do no matter what the company tells you. There is one in the Memphis area that has a stellar reputation and has been very successful in reducing consumer debt. They have never had a complaint. I didnt even consider them when we were debating the BK issue because based on our income/debt and the bills we expected to get we had no other option but for those of you who have found one that is helping ...good luck.