creditcounselinadirectory2

Monday, April 04, 2005

debt management credit counseling corp

Failure to pay creditors in a timely manner or at all. Some credit
counseling agencies that offer debt management plans may fail to pay
creditors in a timely fashion or at all. This can result in serious
consumer harm, such as late fees that the creditors impose.
Promises of results that cannot be delivered. Some agencies promise
that they will lower consumersÂ’ interest rates, monthly payments, or
overall debt by an unrealistic amount. Some also make false promises
to eliminate accurate negative information from consumersÂ’ credit
reports.

credit debt counseling

Testimony Says that Some Firms Are Deceiving Consumers
Although credit counseling can provide financially distressed
consumers with valuable assistance, according to the Federal Trade
Commission, some firms may be misleading consumers about who
they are, what they do, or how much they charge. In Commission
testimony submitted today before the Senate Committee on
Governmental Affairs, the Permanent Subcommittee on Investigations,
FTC Commissioner Thomas Leary cautioned that some companies
use their non-profit status as a badge of trustworthiness to attract
customers, who are then duped into paying large fees. Those fees are
sometimes funneled to for-profit companies.