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San Diego, CA.
The Federal Trade Commission (FTC) visits the high profile
debt settlement operator The National Consumer Council and
shuts them down. Ameridebt, another large credit
counseling
firm who also delves in debt settlement, announced its
filing bankruptcy. Ameridebt has stated that
they have 90,000 clients (industry observers believe the
number is closer to 70,000).
This leaves thousands of consumers across the country will
find themselves at risk, having spent a lot of money at
these firms who either can no longer fulfill their
obligations to manage their debts or who are seriously
impaired in being able to continue.
"We're very concerned about consumers whose accounts are
in some sort of legal status or who may
getting there fast due to the impairment or shutdown of
their agency" said Dianne Wilkman,
President of Springboard Nonprofit Consumer Credit
Management (www.credit.org).
Client cases at some of the card issuers are being heard
by national independent arbitrators and their
decisions are binding. Dependent on several factors,
outcomes could include lien, judgment,
garnishment or bank attachment. Customers may have the
opportunity to make arrangements to repay the loan
contractually or through a Debt Management Plan prior to
these potential outcomes being filed.
Another option consumers can take is to contact a sector
certified, reputable credit counseling agency to get their
Debt Management Plan transferred over.
This is a tricky issue since getting approved into a Debt
Management Plan entitles one to re-aging of
their accounts with most creditors - a significant
benefit, but federal rules allow creditors to re-age only
once in 5 years.
The ICFE recommends the National Foundation for Credit
Counseling (nfcc.org)
and Association of
Independent Credit Counseling Agencies (aiccca.org)
networks.
Credit card issuers are telling these credit counselors
that they will be standing by to help
consumers transfer over to good agencies as best they can.
Calling the NFCC toll free number at 800-388-2227 will
connect you to the nearest agency. The
Association of Independent Credit Counseling Agencies also
has a toll free referral number: 800-450-1794.
Consumers should tell the new agency they should not be
charged another enrollment fee for
transferring and they should hang up if the new agency
does not want to help out in this way.
Consumers should be advised to keep in touch with their
creditors. Many highly reputable counseling
agencies, such as Springboard, based in Riverside, CA.,
will not charge any consumer with another agency an
enrollment fee and in many cases should be able to lower
their monthly fees for debt management plan administration
since it has a very low fee structure.
For more information about transferring a
debt-payment-plan (DMP) or credit and debt
counseling contact: Paul Richard, RFC
Executive Director
Institute of Consumer Financial Education
PO Box 34070
San Diego, CA 92163
619-239-1401
www.icfe.info
Email Reply: icfe@cox.net
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About the ICFE:
About the
ICFE:
The Institute of Consumer Financial Education (ICFE), founded in 1982 by the
late Loren Dunton (creator of the “certified financial planner” (CFP)
designation) and it is dedicated to helping consumers of all ages to improve
their spending, increase savings and use credit more wisely. The ICFE trains and
certifies Personal Finance Instructors for its own curriculum. It also trains
and certifies Credit Report Reviewers and Identity Theft Prevention Specialists.
The ICFE is an award winning, nonprofit, consumer education organization that
has helped millions of people through its education programs and resources. It
publishes the Do-It-Yourself Credit File correction Guide, now in its 16th
printing and has distributed over one million “Credit/Debit Card Warning Labels”
and “Credit/Debit Card Sleeves” world wide.
The ICFE became an official partner with the Department of Defense/Financial
Readiness Campaign in June of 2004.
The ICFE is also a partner in the national Jump$tart Coalition for Financial
Literacy and the California Jump$tart chapter. The ICFE staff is also active
with San Diego Saves, an offshoot of America Saves, and the California Student
Debt Resource Awareness Project (CASDRAP) (studentdebthelp.org).
The ICFE’s on-line help for consumers who spend too much was featured in PARADE
Magazine in the Intelligence Report section. The money helps and tips are from
“The Money Instruction Book,” a course in personal finance, positioned to become
among the premier programs in the new bankruptcy and debtor education
initiatives.
The ICFE Web site at:
http://www.icfe.info helps consumers with mending spending, learning about
the proper use of credit, budget and expense guidelines, how to set up and
implement a spending-plan and also how to access financial education courses and
videos and how to teach children about money. Other ICFE services include a free
eNewsletter, and an online resource center of financial education learning
tools, including videos, books, software and personal finance courses.
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