Consolidating debt nonprofit organization foxdating com
The FTC charged several companies for making false or deceptive claims, violating the Telemarketing Sales Rule (TSR), including the National Do Not Call Registry provisions, by taking advantage of their non-profit status, or violating the Gramm-Leach-Bliley (GLB) Act by not informing consumers about their information-sharing practices.
These alleged non profit debt consolidation companies scammed consumers out of over 0 million, with over 98% of consumers non completing the debt negotiation program they had enrolled into and ending with less money, more debt, and a damaged credit report.
Yet since bankruptcy has far-reaching and long-lasting results, you should first consider other debt management options.
Bankruptcy information stays on a credit report for 10 years and can make it difficult to get credit, buy a home, get life insurance, or sometimes get a job.
From starting a budget to educational programs on money management, counselors discuss your entire financial situation and help you develop a personalized plan.
This unilateral change left agencies struggling financially, cutting educational resources, charging fees to clients (monthly fees, enrollment fees, and sometimes even counseling fees, when up to the 1990s there were virtually no charges at all), and focusing more and more on enrolling as many people as possible into their DMPs, even when a more affordable educational program, community seminar, diagnostic service and basic budget counseling would have been more indicated.
In any case, a reputable and honest non-profit credit counseling service can still provide help when you are struggling with debt and none of the do-it-yourself debt consolidation options appear practicable to you.
They should advise a Debt Management Plan only when it is the best fit for you.
Some non-profits have been found to be outsourcing the majority of their operations to for profit companies with the same ownership, effectively transferring profit in the millions of dollars to themselves, while obtaining "voluntary contributions" from clients which were all being enrolled in the same Debt Management Plan regardless of their specific needs and were not provided with any debt counseling .
A "non-profit" status doesn't necessarily translate in quality and convenience (or even legitimacy) of the service offered, so you need to do your homework to locate a non-profit organization that will truly provide an honest and fairly priced service.
Them, starting in 2004, the IRS audited 63 credit counseling agencies (representing over half of the revenue in the sector).