November 8, 2005
Counsumer Credit Counseling services are not for everybody
Counsumer Credit Counseling services are great for some poeple, but lets be honest - they are not for everybody.
The biggest complaint that people have with CCCs are that they sign people up that really have no business being on them. Currently the IRS is doing a huge overall on consumer credit counseling services due to the new bankruptcy laws.
This new legislation dictates that that people that wish to go bankrupt must first do an IRS approved CCC educational course six months prior to filing for the bankruptcy.Personally, I am very much in favor of this educational approach. What I do not favor, however, is that it must be through a consumer credit counseling agency.
The IRS has only approved about 40 companies nationwide to be non-profit CCCs and that can deliver this education. That means that there are thousands of CCCs that were not really non-profit and only out for the buck.
Cambridge Credit Counseling is just like one of those companies and they were recently fined 4.2 million dollars by the federal governement due to unethical practices.
In my research CCCs have the most number of complaints against them than any other debt relief program, including debt settlement and bankruptcy. Now that says something.
MBNA paid for this new bankruptcy bill that has been effected which dictates the use of consumer credit counseling companies, that has to say something about who benefits from people using CCCs. Hint: it is not the consumer!!
So, if you are thinking of using a CCC make sure that you really need the use of one, and that the company truly is responsible.Jae Burnhamwww.sponduliqs.blogspot.com
The biggest complaint that people have with CCCs are that they sign people up that really have no business being on them. Currently the IRS is doing a huge overall on consumer credit counseling services due to the new bankruptcy laws.
This new legislation dictates that that people that wish to go bankrupt must first do an IRS approved CCC educational course six months prior to filing for the bankruptcy.Personally, I am very much in favor of this educational approach. What I do not favor, however, is that it must be through a consumer credit counseling agency.
The IRS has only approved about 40 companies nationwide to be non-profit CCCs and that can deliver this education. That means that there are thousands of CCCs that were not really non-profit and only out for the buck.
Cambridge Credit Counseling is just like one of those companies and they were recently fined 4.2 million dollars by the federal governement due to unethical practices.
In my research CCCs have the most number of complaints against them than any other debt relief program, including debt settlement and bankruptcy. Now that says something.
MBNA paid for this new bankruptcy bill that has been effected which dictates the use of consumer credit counseling companies, that has to say something about who benefits from people using CCCs. Hint: it is not the consumer!!
So, if you are thinking of using a CCC make sure that you really need the use of one, and that the company truly is responsible.Jae Burnhamwww.sponduliqs.blogspot.com
# posted by Sponduliqs @ 11:41 AM 
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