How CCCS affects your CR

[creditchaos]

What is the name of your state?
I am well aware of what scams debt consolidation companies are. Out of curiousity, I called several to ask how it would affect my CR if I were to enlist their services. One said they had no idea. Another said that it would be listed as being "in a debt consolidation" program which, according to the person I spoke with, wasn't negative. (HA!) Yet another claimed that it had no negative consequences at all. When I tried to question him further he said that if all I wanted was an argument then he couldn't help me!
I can't imagine it would be a positive listing on your CR. For the record, can anyone tell me exactly how this is reported on your CR and what consequences the listing has?

Thanks for any response!

 

[Jeter]

Most times your credit report will not specify that you have your bills with a CCCS, although the CCCS will be listed seperately on your CR.

Reputable CCCS's are not scams believe it or not. The biggest breakdown in the process is that there is very slow and poor communication between the CCCS and the creditors and unfortunately it affects you. Many times your creditors don't even KNOW that you have signed onto a CCCS until after you are late. Whether or not your accounts show negative activity depends on a few factors. Here's the best way to set up an account with a CCCS to keep your credit report in good standing:

First, when you use a CCCS, all accounts on the program will close. Also, your payment date will change across the board to a single payment date set by them. The potentially dangerous part is that most creditors will not get the first payment for about 2 months because your new date will often skip over your current due date and the first payment will be sent the following month. Also, it takes about a month for the CCCS to actually set up your accounts with your creditors. So to avoid late payments on your accounts, the first thing you should do is call and make an immediate payment on as many accounts as you can on the same day that you sign on with CCCS. This will usually take care of the one month lag time. On the same phone call, CLOSE your accounts on your own for reasons that you want to pay off your debt. This will make sure that the closing shows up on your credit report as "closed by consumer" which is NOT a negative mark.

If your accounts are not current, you definately should try to make an immediate payment with the creditor because the lag time from CCCS account set-up to payment could push your account(s) into collections. Then you're in trouble because that will show up on your credit report before the accounts close from the program. The CCCS should bring your accounts current and that should eventually show on your CR although they will be closed.


Hope this helps

 

[ßillcollector]

Going thru CCCs just shows that you are not able to handle the debt yourself. While your intent on paying all your creditors is good, but are you financially ready for it? When faced with similar dilemma, I chose to let couple of my accounts charge-off and kept others current. Now I am settling those that got charged-off. Of course, I am taking a risk I won't get sued.

CCCs are good if your debt is manageable and you are deciplined. Good luck.

 

[Skylyn]

The CCCS companies (at least the reputable ones) don't list anything on your CR. However, the creditors who you enroll into the program can, and some do and some don't.

 

[Ladynred]

In addition, even if they don't report as 'debt program', they will report your account as 'closed by credit grantor'.. and that IS definitely a negative entry.

 

[creditchaos]

Thanks for all of your responses. The problem is that when you call some of these companies for info they don't tell you anything negative. They seem to be trying to "sell" you their services which naturally they accentuate the positive and downplay anything negative. Some of these companies are badly misleading consumers.

 

[ßillcollector]

Thanks for all of your responses. The problem is that when you call some of these companies for info they don't tell you anything negative. They seem to be trying to "sell" you their services which naturally they accentuate the positive and downplay anything negative. Some of these companies are badly misleading consumers.

Of course they will.. Whole idea of extending service costs money and CCCs can't just donate their services. Same with collectors.. I can't afford to volunteer my services. Most people don't want to be told what the reality is.

 

[creditchaos]

I didn't mean "sell" as in exchange of services for a fee. I meant that they neglect to tell you or if you ask ask give you incorrect info in order to "sell" you on their "product". As always......Buyer beware!

Thanks for your response Billcollector.

 

[Jeter]

Yes, because it is a sale for them. Although they are non-profit, the reps are usually paid some kind of comission structure based upon a certain criteria. Esentially, it is a sale and of course the whole idea of sales is to sell the sizzle, not the steak!

 

[lby]

yeah but

yeah, but what if your credit score is shot all to hell anyway. I mean if you cant get a loan to save your life. what's the difference if you have a Credit counseling on your report, if you report is sucky anyway?

 

[Jeter]

In that case, it doesn't matter. Most people with horrible credit usually don't last on a CCCS program anyhow. The pattern of delinquency doesn't change just because the recipient is different. It's like trying to be faithful to your mistress.

 

[lby]

well

We have made payments to our debt consolidation for almost a year now. And I'll tell you why. Because you cant reason with the damn collectors. It is impossible. However you can with a debt consolidation. They dont call and harrass us anymore.

 

[ßillcollector]

Iby,

You can stop collection calls easily with one cease and desist letter. And, just 'cause you are on CCC doesn't mean creditors will keep you in CCC for a long time. We get tons of accounts that were in CCC at one point.

CCC is good if someone is determined to get no longer in debt and pays consistently. IMHO those who don't last in CCCs are the ones who keep living beyond their means regardless what their income is. Bankruptcy is the only way out for them.

 

[twinkles731]

this is not intended for anyone specifically

just make sure that :

1. you accounts are always current. dont wait for cccs to start making your payment. just because they take your money the day you sign up doesnt mean that your accounts will be payd that day, or even that month.

2. if you are 3-12 mnths past due on any account, most creditors will not accept any arrangements proposed by cccs. they might accept the "min payment" that is sent by cccs every month, but if you are 3-12 months past due, it wont help you and the late fees will pile on top of each other.

just bring your accounts current before signing up with any company and keep on the company to make sure they are making your payments on time, on a regular basis, and before your due date. remember, just because they draft your bank account on the "23rd" and your dd is on the first, doesnt mean your payment will make it on time.

ask alot of questions regarding amounts and dates when you sign up.