CREDIT COUNSELING SERVICES AND CREDIT CARD COMPANIES

Many credit counseling agencies have “not for profit” status, but are most often funded largely by the credit card banks and creditors to which the debt payments are distributed to. The credit counseling agencies receive contributions know as “Fair Share” for the amount that they recover from consumers. Are these credit counseling agencies merely a collection agency for the credit card companies? While there is no direct affiliation, the organizing body - National Foundation of Credit Counseling - does consider credit card companies as one of their “primary constituents.” Their members collectively receive two-thirds of their funding from creditors. Based on this, it is evident that their loyalties could be split.

Research Your Choices:

We encourage clients to research any organization or company they intend to work with - Attorney or Credit Counseling Agency. Here is a checklist of important questions to ask according to the Federal Trade Commission (www.ftc.gov):

• What services are offered?
• Are you licensed to offer your services in my state?
• Do you offer free information?
• Will I have a formal written agreement or contract with you?
• What are the qualifications of your counselors? Are they accredited or certified by an outside organization? If so, which one? If not, how are they trained?
• Have other consumers been satisfied with the service that they received?
• What are your fees? Are they set-up and/or monthly fees?
• How are your employees paid? Are they employees or the organization paid more if I sign up for certain services, pay a fee, or make a contribution to your organization?
• What do you do to keep personal information about your clients confidential and secure?

Hear From Us:

While this suggested FTC checklist was written for investigating credit counseling agencies, we believe it is a good checklist for other organizations you may be considering. Here is our firm’s response to that checklist:

• The services we offer are Chapter 13 debt reorganization  and Chapter 7 debt elimination. Both are forms of bankruptcy. The Chapter 13 allows you to reorganize your debts to create a balanced monthly budget, usually legally reduce what you owe and payback, improve your credit throughout the course of the program and pay back all unsecured debts (credit card, medical bills, personal loans, etc) at 0% interest.
  Chapter 7 provides total debt elimination and court protection from your creditors if you do not have the ability to pay the debts back. Because this program instantly improves your debt-to-income ratio, it may be your first step towards improving your credit
• Are you licensed to offer your services in my state?
  All of our Attorneys are licensed with the State of Michigan and the Federal Bar Association.
• Do you offer free information?
  We offer free phone and in-office consultations with a licensed Attorney.
• Will I have a formal written agreement or contract with you?
  Yes. We have an agreement specific to our firm that clearly spells out our services to you.
• What are the qualifications of your counselors? Are they accredited or certified by an outside organization? If so, which one? If not, how are they trained?
  All of our Attorney’s credentials are provided on our “Profile” page. As you will see, all of our Attorneys have extraordinarily high academic credentials and practice exclusively in bankruptcy law. Because we specialize in Chapter 7 and Chapter 13 and do not take on cases in any other areas of law, all of our Attorneys have debt resolution as their expertise.
• Have other consumers been satisfied with the service that they received?
  Yes. Please read our “Testimonials” page. We also have an A+ rating with the Better Business Bureau and have found that the majority of our clients come through referrals from our past clients, their friends, co-workers and family members.
• What are your fees? Are they set-up and/or monthly fees?
  Our fees are paid directly in the case of a Chapter 7 or paid as a component of your reorganization Plan (through a court-appointed Trustee) in the Chapter 13 context. The fees are approved by the court and overseen by the Department of Justice. The amount of the fees will be discussed at your free initial consultation.
• How are your employees paid?
  Our attorneys are paid on salary.
• What do you do to keep personal information about your clients confidential and secure?
  You are protected by Attorney/Client privilege and we work for you, no one else. We do not share your information, sell client lists or disclose any document outside of what is required by the court. Our files and documents remain securely locked.

We encourage you call or e-mail us for a free consultation. We will evaluate your financial situation and provide you with options to improve it. We will provide you with an honest assessment of all avenues that are available to you and answer questions you may have regarding options you are exploring. Please call us toll free at 866-261-8282 or click here to schedule a consultation right now.