Credit Counseling Organization
January 7, 2008
What you want to get from a Credit Counseling Organization, to start with, covers the following:
- Are they licensed to offer you services in your state?
- What are their set-up fees?
- What are their monthly fees?
- Are there any other fees or contributions required?
- What are the qualifications of their counselors?
- Are their counselors accredited and/or certified by an outside organization? If so, by whom? If not, how are they trained? Third party certification adds an independent unofficial auditing that is helpful.
- How do their counselors get compensated? You want to avoid anything that resembles commission.
- What assurance do you get that your private information remains confidential and secure?
- What services do they offer? Debt management is just a part of the debt issue and you may need other services to help you accomplish what you need. Look for a wide range of services without bias. If an organization says they have a wide range and then push a particular service such as debt management plan (DMP), then they are biased.
- How can they help you with both the immediate debt problem as well as long term plan to help you stay on track?
- Will you have a formal written agreement or contract with them? You need everything in writing and you need time to review them before you sign. Consider verbal promises invalid.
Once you get the information in the mail you need to confirm that the credit counseling organization is both legitimate and reputable. You can check their legitimacy by contacting your state Attorney General, local consumer protection agency, and Better Business Bureau. See if there are licensed and if there are any complaints against them filed by consumers. Remember that a clean record is just a start and does not guarantee service.
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