nonprofit consumer credit counseling agency?
I am thinking about signing up with CareOneCredit.com regarding passing my all my debts into one payment. What are the pros and cons of doing so? I am currently struggling to make all my credit card payments, do you think this is a smart choice?
Public Comments
- Use caution!! not all those not for profit outfits are what they say they are. Many will simply stop payments and wait for the accounts to go to collections to get them to accept a lower payoff, which the creditor does not have to accept. Some of these scam artists make promises they can not keep. Here are some signs to watch forl companies that want you to pay for credit repair services before they provide any services. companies that do not tell you your legal rights and what you can do for yourself for free companies that recommend that you not contact a credit reporting company directly. companies that suggest that you try to invent a “new” credit identity — and then, a new credit report — by applying for an Employer Identification Number to use instead of your Social Security number. companies that advise you to dispute all information in your credit report or take any action that seems illegal, like creating a new credit identity. If you follow illegal advice and commit fraud, you may be subject to prosecution. By law, credit repair organizations must give you a copy of the “Consumer Credit File Rights Under State and Federal Law” before you sign a contract. They also must give you a written contract that spells out your rights and obligations. Read these documents before you sign anything. The law contains specific protections for you. For example, a credit repair company cannot: make false claims about their services charge you until they have completed the promised services perform any services until they have your signature on a written contract and have completed a three-day waiting period. During this time, you can cancel the contract without paying any fees Your contract must specify: the payment terms for services, including their total cost a detailed description of the services to be performed how long it will take to achieve the results any guarantees they offer the company’s name and business address Depending upon how much debt you owe, you might find that you can do it on your own. If you owe a lot of debt then perhaps credit counseling services that are recognized as legitimate by the FTC is what you should look into. Here is a link to find one in your area http://www.usdoj.gov/ust/eo/bapcpa/ccde/de_approved.htm Hope this answers your question
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