Protect Your Credit Score

Part of every financial scenario is a healthy credit score.  High scores make the difference between favorable interest rates and easy credit availability.  Here are some tips to keep your score as healthy as possible.

Don’t Miss Payments.  This is the holy grail of credit score basics.  Do your best to pay on time and try not to buy anything that could endanger your ability to meet this absolute requirement.  If you have missed payments in the past, establish a new on-time record starting now.

Don’t Charge Up To The Limit.  Try to pay down card balances to no more than 30 percent of the account limit.  In addition to paying the accounts down, you may be able to get some limits increased by talking to the card issuer.  Either way, try to maintain no more than that 30 percent level.

History is Important.  One of the most important aspects of your credit score is the length of time you have with an account.  That means it is probably not a good idea to close out old accounts even if you haven’t used them in a while.  Keep those old accounts and use them now and then.

Spread Things Out.  Try to use credit wisely.  Having different types of credit is important to a solid score. 

Never apply for credit that you don’t need but be sure that you use appropriate types of accounts based on your financial planning.  However, don’t apply for new credit in advance of a need for a new home loan or other large purchase and don’t change your spending habits too drastically or too quickly.  Creditors are hypersensitive to risky situations these days.

David C. Jones, Ph.D.
AICCCA President

Counselors Often Can Help Save Thousands With Simple Spending Tips

Many consumers develop spending habits that can lead to financial crisis; especially if a layoff, job loss, or other stress occurs in the family.  Credit counselors can spot these spending patterns and suggest lifestyle changes that can make the difference between surviving a financial stress issue and folding under it.
Some examples of wasteful habits that can make a big difference are:
Buying coffee.  Stopping for a cup every morning on the way to work or getting a special drink during a break can add up.   It is easy to spend $60 or $70 a month on this habit alone.  That could be $1000 a year saved if you just made the coffee at home and took a thermos.
Bottled Water.  Yes, it usually tastes better than tap water but $1 a bottle versus less than one cent a bottle is a big difference.  At these prices, it’s a much better deal to buy a filter pitcher for $20 and make your own.  That can save as much as $35 a month or more.
Paying Checking Account Fees.  Many banks are now charging fees for having your money in a checking account.  It may be time to look into a local bank or credit union that offers free checking.  And that goes of free use of ATMs as well.
Cell phones.  Look into low cost providers and hold a family meeting about curtailing texting and limiting phone usage iuntil things improve.  This can save hundreds each month.
Cable TV.  It may be time to reduce the 300 channel service to basic cable and save $40 or $50 a month without too much sacrifice.
Brown Bag It.  Carry your lunch to work or school.  And prepare dinner at home instead of going out or even ordering in.  It’s a lot cheaper and can be better for you as well.  A little extra work is worth it, especially when the savings can be huge.
Use the Library.  It’s free.
A typical family can save $200 a month or more with some simple, common sense changes to spending habits.  A counselor can help you make the adjustments and you will be surprised at the difference it can make.

David C. Jones, Ph.D.
AICCCA President

The Consumer Financial Protection Bureau takes an unusual position on some credit card fees

According to an article by the Tribune Newspapers, the CFPB has issued a proposal to reverse a Congressional fee limit on subprime credit cards.  The cards in question are so-called “Fee Harvester” cards that are offered to consumers who can’t get other types of credit. These consumers typically have damaged credit and resultant low credit scores.
The fee harvester cards have a low credit limit (a few hundred dollars) and very large fees (a processing fee of $95 and an annual fee of $75 on a $300 card for example).  The net effect of having such a card is $225 in credit at a cost of $170.  Major consumer advocacy groups oppose these cards and have come out against the CFPB’s proposal.  However, a lawsuit brought by the card issuers in U.S. District Court has resulted in a ruling that blocks the law limiting the fees.
Even though fee harvester cards are advertised as a way for people who have bad credit (or no credit) to build up or repair their credit histories, the likelihood is that they will just get into more trouble because of the high fees and penalties that the cards carry.  This is the first time the CFPB has issued a proposal that defies a law passed by Congress and which has strong support among consumer advocacy groups.  The CFPB has given lobbyists and the public until June 11 to file objections and comments before the CFPB makes its proposal final.
The AICCCA advises consumers to be very careful before agreeing to one of these types of credit card offers.  Read and understand every aspect of a prospective credit card contract before signing it.  While these high fee cards may be appropriate for some consumers in some circumstances, they carry a huge price for the convenience they offer.  Everyone should exercise caution, especially those with limited resources.  A prepaid card or a debit card may be a much better option for many.

David C. Jones, Ph.D.
AICCCA President

Not All Credit Card Problems are Due to Overspending

There are many issues that can complicate how consumers use their credit lines.  Here are some issues that should be dealt with promptly when they occur:

·        What you should do if you believe that you have too many active credit cards.  Consumers who have a number of credit cards may be at risk for a credit score downgrade even if those cards have low or even zero balance.  Here’s why: The credit bureaus look at a consumers total ability to charge on unsecured credit lines and compare that to their ability to repay.  If there is an imbalance (which there easily can be if the consumer has many open credit cards), it is highly possible that it will be seen as a risk and could lead to a reduction in the credit score.  If you do have a number of credit cards and want to begin to reduce them, do it slowly; not all at once.  Cancel one or two every two or three months.  Cancelling more than that could also throw up a red flag and affect your score as well.

·        Do you share a credit line with others?  Consumers who share the same credit card account with a spouse or family member could be in for trouble.  Each card holder in such a joint account is liable for the actions of all of the other joint card holders.  That can be an issue.  If you hold a joint credit card account, you may want to change the situation so that each current joint holder gets their own personal account.  That way each debtor is building their own credit history and the other aren’t liable for each other’s actions. And, don’t ever, under any circumstances, co-sign a loan with anyone, anywhere, anytime.  That is a recipe for certain trouble and maybe worse.

·        Are you contemplating making some changes in the way you use credit?  It is entirely possible that many consumers are considering some spending pattern changes such as charging groceries when they have been using a debit card or cash, buying clothes and other hard goods at a cheaper outlet, or other changes that could be entirely appropriate to the family’s current circumstances.  Be careful though.  The credit bureaus, and many creditors, will see dramatic changes in spending patterns a a warning that trouble could be on the horizon.  If the spending patterns are abrupt and severe, you credit worthiness could be at risk and you credit score could even be affected.  That doesn’t mean you shouldn’t make appropriate changes to how you use credit, but it does mean that you should approach the changes you make gradually and carefully.

David C. Jones, Ph.D.

AICCCA President

The Consumer Financial Protection Bureau Takes an Unusual Position on Some Credit Card Fees

According to an article by the Tribune Newspapers, the CFPB has issued a proposal to reverse a Congressional fee limit on subprime credit cards.  The cards in question are so-called “Fee Harvester” cards that are offered to consumers who can’t get other types of credit. These consumers typically have damaged credit and resultant low credit scores.

The fee harvester cards have a low credit limit (a few hundred dollars) and very large fees (a processing fee of $95 and an annual fee of $75 on a $300 card for example).  The net effect of having such a card is $225 in credit at a cost of $170.  Major consumer advocacy groups oppose these cards and have come out against the CFPB’s proposal.  However, a lawsuit brought by the card issuers in U.S. District Court has resulted in a ruling that blocks the law limiting the fees.

Even though fee harvester cards are advertised as a way for people who have bad credit (or no credit) to build up or repair their credit histories, the likelihood is that they will just get into more trouble because of the high fees and penalties that the cards carry.  This is the first time the CFPB has issued a proposal that defies a law passed by Congress and which has strong support among consumer advocacy groups.  The CFPB has given lobbyists and the public until June 11 to file objections and comments before the CFPB makes its proposal final.

The AICCCA advises consumers to be very careful before agreeing to one of these types of credit card offers.  Read and understand every aspect of a prospective credit card contract before signing it.  While these high fee cards may be appropriate for some consumers in some circumstances, they carry a huge price for the convenience they offer.  Everyone should exercise caution, especially those with limited resources.  A prepaid card or a debit card may be a much better option for many.

David C. Jones, Ph.D.
AICCCA President

Bankruptcy filings for February were up about 19 percent over January

Total bankruptcy filings in the United States increased 19 percent in February, according to data provided by Epiq Systems, Inc. Bankruptcy filings totaled 104,418 in February, up from the 87,981 filings in January 2012.

“The stagnant housing sector and high unemployment continue to stress the cash flow of consumers and businesses,” said ABI Executive Director Samuel J. Gerdano. “As consumers and businesses work to shed tremendous debt loads, there are times when bankruptcy is the only shelter to provide financial relief.”

We have continued to warn that there is trouble on the horizon as consumers struggle on the brink of financial disaster.  Hopefully, those consumers will turn to credit counselors for help before it is too late and their only option is bankruptcy.  There are a number of options for many debtors if they seek help early enough.  Search for an AICCCA Member on our website.

David C. Jones, Ph.D.
AICCCA President

Bankruptcy Filings Were Down In January But Does That Mean Things Are Improving?

The average nationwide per capita bankruptcy-filing rate for January was 3.41 (total filings per 1,000 per population), and the average total filings per day in January 2012 registered 4,397, a 14 percent decrease from the 5,109 total filings in January 2011. States with the highest per capita filing rate (total filings per 1,000 population) during January 2012 were:

1.      Tennessee (6.38)
2. Nevada (6.22)
3. Georgia (5.44)
4. Delaware (5.27)
5. California (5.13)

These are also States with very serious unemployment issues.  The American Bankruptcy Institute (ABI) predicts at least some stability for the remainder of 2012: “The continued decline in bankruptcies reflects the effort of consumers and businesses to shore up their debt loads in order to navigate through an uncertain economy,” said ABI Executive Director Samuel J. Gerdano. “We expect overall bankruptcy levels in 2012 to continue to trend downward until consumers increase household spending.”
That may very well be so and we hope it is.  However, there are still millions of consumers actually living on extended unemployment insurance payments and those will eventually end.  There are also a large number of families still in trouble with home mortgages.  We believe there is a “bubble” of potential personal bankruptcies on the horizon.  As the federal government begins to deal with the national debt, out-of-control spending, and revenue shortfalls, expect to see more consumers in serious financial difficulty.

David C. Jones, Ph.D.
AICCCA President

Bankruptcy Filings Continue To Fall

U.S. consumer bankruptcy filings totaled 106,255 nationwide during October, a 19.6 percent decrease from the 132,173 total consumer filings recorded in October 2010, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center (NBKRC). The October consumer filings also represented a 2 percent decrease from the 108,517 filings in September. Chapter 13 filings constituted 31.5 percent of all consumer cases in October, a slight increase from September.
"The declining filings correlate to tightened consumer spending and the overall pull back in consumer credit associated with a stagnant economy," said ABI Executive Director Samuel J. Gerdano. "We expect total 2011 consumer filings to be less than 2010."

David C. Jones, Ph.D.
AICCCA President

Make The Best Of Your Rewards Cards

Every cardholder should be completely aware of the contract they sign when obtaining a credit card.  That is especially true of Rewards Cards.  These cards offer cash back, airline miles, or other rewards based on card usage.  However, many of them now have an annual fee attached that very well could negate any reward that the card could bring.
It is also wide to check on the exclusions, blackout dates, hidden taxes, service charges, or other fees that could be associated with the cashing-in of the promised reward.  On everything except automatic cash-back cards, the best practice is to have a plan for how the potential reward will be used and work to make the plan a reality.  And, the plan should not be “rack up as many miles as I can” either.  Make the plan specific and be sure to know the card’s limitations, reward expirations, and what taxes and other charges may be due. 
For those who carry a balance on their credit cards each month, it is usually better to shop around for a credit card that has a low interest rate.  Rewards cards can lose most or all of the reward value just on the annual fee or on monthly interest charges.  If so, a lower interest credit card (that doesn’t have a rewards program) could provide the ability to buy outright whatever the rewards card would have yielded at a big savings.

David C. Jones, Ph.D.
AICCCA President

What About Those On-The Spot Department Store Credit Cards Offers?

This holiday season, retailers at the mall will be waiting at the door with store credit card offers that promise 15% or more off of every purchase you make that day if you just sign up.  Be careful.  Even those seeking to establish a credit history can be in peril.

There are a lot of reasons why you should be wary.  While getting an extra savings on purchases that you might have made anyway could seem like a great deal, there could be consequences.  Many shoppers will buy more than they would have without the new card offer and the store knows that.  That is precisely why they can afford to make the offer.

Also, the last thing many consumers need is one more credit card.  There is a strong possibility that the card may be overused and the balance carried over from month to month.  If so, every consumer should know that store cards typically carry a much higher interest rate charge than other charge cards.  Any savings that could be realized on day one can be quickly erased if the card isn’t paid off each month.

There is also the danger of a possible negative impact on the consumer’s credit score.  Score reductions can come from having too many open lines of credit compared to income or the result of late payments and the attendant late charges and over-the-limit charges.  In general, it may be better to pass up the store card offer, stick to the budget, and pay cash this year.

David C. Jones, Ph.D.
AICCCA President

The Uniform Debt Management Services Act Final Draft Was Issued on November 1

The National Conference of Commissioners on Uniform State Laws (NCCUSL) issued its final version of the prototype Uniform Debt Management Services Act for adoption by the states.  This is the final step in a process that began over six years ago and included input by a number of industry sources including the AICCCA.

The final version of the proposed law covers both Credit Counseling entities offering education and Debt Management Programs and Debt Settlement companies offering to settle consumer debts at a reduced principal amount.  If enacted by most or all of the states without changes, this law could benefit credit counseling companies, consumers, creditors, and even debt settlement companies by eliminating the overlapping, redundant, confusing and contradictory patchwork of laws that have been enacted by various states over the past decade.

The law seeks to standardize bonding, insurance, fees, and other requirements.  It also provides for restrictions and limits on various activities that credit counseling and debt settlement companies can engage in and offers a number of sound consumer protections.  It is our sincere wish that every state adopt this law in the best interests of its citizens.

David C. Jones, Ph.D.

AICCCA President

The Bankruptcy Code Makes Several Options Available

While there are many options available to consumers before considering bankruptcy, there are also many options for bankruptcy as well.  AICCCA Counselors can provide a thorough review and recommend the best options available for a consumer facing serious debt issues.  It is always advisable to consult an AICCCA Counselor before making a final decision about which option to take.

Most consumers don’t really have a good knowledge about how the bankruptcy system works.  Here are some basics:

Chapter 7 of the Bankruptcy Code is available to both individual and business debtors. Its purpose is to achieve a fair distribution to creditors of the debtor’s available non-exempt property.  Unsecured debts not reaffirmed are discharged, providing a fresh financial start.

Chapter 11 of the Bankruptcy Code is available for both business and consumer debtors. Its purpose is to rehabilitate a business as a going concern or reorganize an individual’s finances through a court-approved reorganization plan.

Chapter 12 of the Bankruptcy Code is designed to give special debt relief to a family farmer with regular income from farming.

Chapter 13 of the Bankruptcy Code is available for an individual with regular income whose debts do not exceed specific amounts; it is typically used to budget some of the debtor’s future earnings under a plan through which unsecured creditors are paid in whole or in part.   

Each of these Chapters of the Bankruptcy Code has its place but each situation is unique.  A Certified Counselor can usually provide the best range of options available to a debtor.

David C. Jones, Ph.D.
AICCCA President

Report from AICCCA President's New York Press Tour

Early in October, President Dave Jones spent two days of intensive interviews and filming in New York City.  The intent was to reinforce friendships with many of the financial and consumer affairs writers that he speaks to on a regular basis.  And, there were also some new faces that he needed to meet in person so that the AICCCA message can continue to flourish in the media.  New York City is home to the most influential and widely accessed media about consumer financial issues.

This tour of major news outlets (USA Today, Associated Press, CNN Television, Bloomberg Print, author Beth Kobliner, Credit Cards.com, and ABC Television to name just a few) is a follow-up to a similar Media tour undertaken in Washington, D.C earlier this year.  Such meetings cement AICCCA’s relationships with important media personalities to ensure that the Association best represents the efforts of its members to provide world-class support to the Nation’s debt-burdened consumers.  Both Washington, D.C. and New York City are major hubs for the financial and consumer services media.

Dave was accompanied on the New York City media Tour by AICCCA Public Relations Director Ken Scott who arranged the grueling two-day slate of interviews and videotaping sessions.  Several stories quoting Dave from these meetings have already been published and many more are scheduled in the coming weeks.  This exposure is essential to keep AICCCA members first in the minds of consumers who need credit counseling help and education.  These meetings were particularly important as consumer financial issues due to the current economic turmoil are critical to the legislative process as well as the financial services media.

(To see photos from the press tour, click here!).

Is It Time to Reevaluate, Review, or Revise Some Lifestyle Choices?

Wild fluctuations in the equity markets, stubborn negative trends in housing and job growth, and rising prices for just about everything could signal a need for many families to take a hard look at how they manage their finances.  Even those families that are able to stay ahead of their bills may need to think about how to keep some of their earning versus spending on frivolous or not needed items.  This is especially true for families that haven’t saved at least enough money to make it for a minimum of six months if there is a job loss or some unforeseen large expense.

Candidates for review are cell phone charges, cable or satellite TV expenses, charges for entertainment or eating out, and even expenditures on clothing and other necessities.  Every family should have a budget that realistically considers all expenses while providing for needed savings.  The best time to do this is before it becomes a critical issue.  Having a real handle on family financial planning is the best protection against uncertainties that could pop up at any time.

David C. Jones, Ph.D.

The "Face" of Credit Counseling Has Changed

AICCCA asks its Members to provide data about the services they provide through its Quarterly Statistical Survey.  This survey asks for general statistical information about the clients served by Member agencies, such as age, average gross income, the main reason for seeking help from the agency, and the type of debt placed into debt management plans. Thanks to those Members who have been submitting data for a few years, we are able to discern significant trends in the type of clients seeking services from member agencies and the types of services they seek.

Data received from the 2007 Quarterly Statistical Surveys revealed the face of an average consumer credit counseling debt management plan client in the early stages of the national financial crisis.

In 2007 the average client:

·         Was 41 years old

·         Was “working class” (as defined by average gross income)

·         Was from the Midwest

·         Was seeking help with credit card debt

·         Placed an amount of debt equal to 65% of his/her average annual gross income on a DMP

·         1% of the debt placed into the DMP was secured debt

Data collected from the first two quarters of the 2011 Quarterly Statistical Surveys confirms what our counselors have been observing in their offices:  that the continuing financial crisis has brought a change in the portrait of the average consumer credit counseling debt management plan client.

In 2011 the average client:

·         Is 44.5 years old

·         Is “middle class” (as defined by average gross income)

·         Is equally likely to be from the Midwest or Mid-Atlantic

·         Is primarily seeking help for reasons other than credit card debt, job loss, divorce, or medical issues

·         Is placing an amount of debt equal to 40% of his/her average annual gross income on a DMP

·         4% of the debt placed into the DMP is secured debt

David C. Jones, Ph.D.
AICCCA President

Connection Between Excessive Open Credit Lines and Risk of Personal Bankruptcy

A consumer who has more credit lines than their net income warrants risks a lowered credit score.  As credit scores are measures of credit risk, it follows that there would be more likelihood that such debtor behavior could lead to personal bankruptcy.  However, we do not have statistical evidence to support this.  Even so, consumers should be careful not to open more lines of credit than their take-home pay can comfortably support.  Not only is it poor financial planning, it sends a message to creditors that there is more risk in lending to this consumer, resulting in higher interest rates or even denial of future credit.

David C. Jones, Ph.D.

AICCCA President

Why is there a telephone number for credit counseling assistance on credit card statements?

The CARD Act requires that the telephone number for a non-profit credit counseling source be included on all credit card statements.  The numbers that are used for the most part are the toll-free numbers for the consumer help lines of the AICCCA and NFCC.   If consumers are experiencing difficulty paying their bills, calling one of these numbers will connect them with a non-profit credit counselor who may be able to help.

David C. Jones, Ph.D.

AICCCA President

Some hope in how the Consumer Financial Protection Bureau May Deal with Credit Counseling

After recent meetings with the CFPB, I found them generally quite open to industry concerns and willing to listen.  They also made it clear that they had no intention of instituting new regulations on any industry that was already sufficiently regulated.  It is clear to anyone that non-profit credit counseling is, if anything, “sufficiently regulated.”  We will be working diligently to be sure that whatever develops is useful to our clients and doesn’t tend to “legislate us out of operation” as many regulators have tried to do in the past.

David C. Jones, Ph.D.

AICCCA President

What happens if a consumer misses a payment on a Debt Management Plan (DMP)?

There is no penalty if the consumer doubles up and makes up the payment within a month or two.  As there are strict rules with respect to how many times an account can be re-aged (once in one year and twice in five years per the Controller of the Currency/Federal Financial Institutions Examination Council), the consumer must stay on the agreed-to repayment schedule.  If they do not stay on that schedule, the creditor will often drop the consumer from the DMP and they will have to deal with their debts in some other way.  The credit counselor explains this to the consumer initially and follows up with them if a payment is missed.  Obviously, rehabilitation of consumers who have serious debt problems depends heavily on them performing to the agreed-to terms of their DMPs.

David C. Jones, Ph.D.

AICCCA President

What type of training do credit counselors receive?

AICCCA counselors must be certified by either of two independent third-party sources which are approved by the Board of Trustees. The two approved independent certification sources are: 1) The Institute for Personal Finance/AFCPE and 2) The Institute for Financial Literacy.   The education leading to certification is rigorous and usually takes about six months of study before the final test can be independently administered and graded.  Counselors must also participate in on-going education and submit continuing education credits to the certifying body to retain their certifications.  As every agency is periodically audited to our standards, any counselor that has not become certified within twelve months of hire or any counselor that subsequently loses certification must be discharged or removed from the
counseling role.

Further, the association conducts a blind review of counselor performance through a third-party analysis company (unknown to the agencies) by conducting "mystery shopper" calls and recording the results of the counseling session for later review by the agency.  Any discrepancies from best practices are noted and the agency is required to submit remedial plans to the Membership & Compliance Committee for any counselor that does not meet the standards.  The analysis company randomly reviews counselors from
every agency multiple times during the year and every analysis report is reviewed by the Committee before forwarding it to the agency. 

This entire education, audit, and follow-up process provides additional assurance that consumers are being served by knowledgeable and well-trained counselors; not telemarketers.

David C. Jones, Ph.D.

Is Face-to-Face credit counseling a better option than telephone counseling?

Almost all credit counseling takes place by telephone these days.  Our members and those of the NFCC still offer face-to-face counseling but there is little demand.  Consumers generally don’t want to take the time and effort to arrange a face-to-face session; they would rather do it by phone – cheaper, easier, and faster.  And, the depth and quality of a telephone counseling session has been shown to be as effective as a face-to-face session.  The percentage of face-to-face counseling sessions overall is less than 1% of the total number of counseling sessions conducted today.

David C. Jones, Ph.D.
AICCCA President

What happens to a consumer’s credit report when a Debt Management Plan is entered?

The Credit Repair Organizations Act (CROA) requires that consumers not be misled about how their credit reports might be affected by a company’s actions on their behalf.  This law was intended to apply to companies that promise to “repair” a consumer’s credit history for a fee.  Non-profit credit counseling companies are specifically exempted by the language of the law itself.  However, in a ruling by the 1^st Circuit Court, credit counseling companies must prove that they are operating in an appropriate manner or be subject to the provisions of the CROA statute. 

This obviously creates a dilemma for credit counselors who are asked by consumers what impact entering a Debt Management Plan (DMP) might have on their credit reports.  There is no attempt by the credit counseling organization to “repair” the consumer’s credit history yet, the 1^st Circuit ruling introduces caution in responding to this question.  On the other hand, consumers should be aware of the process.

When a creditor reports to a credit bureau that one of their customers has entered a DMP, the bureau codes the consumer’s credit report accordingly.  There is no impact on the consumer’s credit score strictly from the act of joining a DMP.  However, it may well be that the consumer’s credit behavior that led to them needing DMP assistance could have impacted the score anyway.  

Creditors generally do not view the fact that a consumer is on a DMP as negative.  Rather it is usually seen as an attempt to honor their obligations and is certainly seen as more positive than personal bankruptcy.  Further, the education that is received as part of a DMP, along with the counseling, is intended to rehabilitate and produce a more credit-worthy consumer in the future.  Creditors may also see this as positive.

David C. Jones, Ph.D.
AICCCA President

How do non-profit credit counseling companies fund their services?

Non-profit credit counseling companies provide counseling and education services free and if a Debt Management Plan is indicated, it is provided at a very low cost.  There are several options for funding a non-profit credit counseling operation.  All of them are minimal and make it difficult for most companies to continue to provide this essential service to debt-burdened consumers. 

Twenty years ago, creditors contributed about 15% to the credit counseling company and consumers paid nothing.  Today, that contribution is just under 5% (and that is for those creditors who pay anything).  Many creditors contribute nothing at all.  The agencies must charge fees to consumers, search for grants, and provide other permissible services (e.g., housing counseling, bankruptcy counseling, and bankruptcy pre-discharge education) to be able to continue the service.

Fees charged to consumers remain low and are limited by AICCCA standards and certain State laws.  Further, no fees are charged at all if the consumer cannot afford to pay them.  No one is denied service based upon the ability to pay a fee.

David C. Jones, Ph.D.
AICCCA President