SHOCKING FACT #1:
Credit counselors work for your creditors, not for you. A former Assistant Attorney General for the state of Texas said this about Consumer Credit Counseling Services: "I think that consumer credit counseling service is intrinsically deceptive. They're funded or incorporated by the very people they are truly representing...not the consumer/debtor but the creditors trying to collect the money. I think they're a con; they pitch themselves as serving the consumer's best interest but they don't. Their promotion practices are deceptive and the consumers are being grossly misled. If they were lawyers, they'd get disbarred! Representing one party and acting for the other? Come on! Think about it! If lawyers won't get involved in an enterprise like Consumer Credit Counseling, you know it must be bad."
SHOCKING FACT #2:
Credit counselors get paid by the credit industry to "help" you pay creditors. Your creditor counselor is being paid by the credit card companies. Interest
SHOCKING FACT #3:
Credit counselors' nonprofit status does not mean they are not making money at your expense. Consumer Credit Counseling Services makes a point of describing themselves as a nonprofit organization. Most consumers don't realize that nonprofit businesses operate to make a profit. Rather than distributing earnings to stockholders as dividends, the profits are paid to the employees and officers as salary or bonuses. They make money - a lot of money! For example, Consumer Credit Counseling Services in the Greater Dallas area reportedly collected $103 million dollars in one year alone. And they got a big chunk of that as their commission! Most hospitals are nonprofit organizations too. A company's nonprofit status has nothing to do with whether they are motivated to make money. As reported in the Washington Post, the Office of the Corporation Counsel said: "Consumers should not let down their guard just because a credit-counseling agency calls itself nonprofit. It is easy to