Credit Counseling Centers of America Repair Credit Problems

Common Questions about the CCC of A

Who pays for this free service?

Credit Counseling Centers of America is a charitable, Non-Profit Organization, approved under IRS Code 501 (c)(3). They are eligible for both government and foundation grants. Many creditors will make voluntary contributions to them so that they can provide free or low cost help to consumers.

Creditors realize that most families in financial distress cannot afford professional financial counseling, and could be driven into bankruptcy if aggressive collection efforts persist. Not all creditors donate to CCC/America ®, however, they assist ALL families regardless of a creditors donation policies.
 

How will CCC/America's Debt Consolidation Program* affect my credit?
*Also known as a DMP - Debt Management Program

If you are considering this program, you may have already affected your credit rating.

In the past seven years, if you have made late payments, missed payments or received collection calls or letters, these problems are already adversely affecting your credit rating, because your creditors have reported this to the Credit Bureaus.

CCC/America maintains complete confidentiality of your records, and do not report you to the Credit Bureau.

Your creditors will report that you are in credit counseling. You should realize that this shows you had the intelligence and integrity to get help.

If, on the other hand, you always pay all of your bills early or on-time, never missed a payment or paid late (even one day), never received a collection call or letter in the last seven years, you probably have a perfect credit report.

If present circumstances warrant this program, your credit report will reflect the creditors who have accepted your debt management program through Credit Counseling Centers of America.

Enrolling in a debt management program may adversely affect your credit report because a future creditor five years from now will take this fact into account when granting you credit because it could be considered good or bad, depending upon that creditor's own criteria for granting credit.

You should realize that most creditors appreciate the fact that you had the intelligence and integrity to get help with a problem before it went too far. You dealt with the problem and you paid your creditors in full. Many creditors will look upon that as a badge of honor.

Do the collection calls stop?

Yes, generally the collection calls stop after one or two good payments. Each creditor has their own policies.
 

Do all creditors stop interest?

Not all creditors stop interest. Each creditor has their own program. However, many creditors will stop or lower interest while you are in the program. Your counselor can advise you as to their individual programs.
 

How do I make payments into the trust account?

Most CCC/America clients appreciate the ease and convenience of their auto-debit program. You choose when the funds are automatically withdrawn from your checking account monthly on a pre-selected date. No more worries about lost or late payments in the mail.

How long will it take to payoff my creditors?

Typically, the repayment program is based on 3% of the balance per month. When the creditors stop interest, within 34 months usually, they are paid in full because the entire payment is going towards the principal. For creditors who do not stop interest, it will take longer.

As the creditors who stop interest are paid off, we apply these funds as extra payments to the creditors who continue to charge interest. This allows them to receive larger payments than their minimum payment. Usually they will be paid off within 12 months after the other creditors have been satisfied.

What if I want to pay off an account or increase a payment?

This is always encouraged and they will be happy to assist you. REMEMBER, you MUST pay off these creditors through your CCC/America Debt Management Program trust account in order to receive proper credit.

Note: If you pay off an account yourself, by-passing your CCC/America Debt Management Program, they cannot give you a "Letter of Release." It will be virtually impossible to re-establish your credit without a "Letter of Release." If you wish to increase the amount that you are paying each month to pay off your creditors quicker, you may do so at any time.
 

What if a credit collector is harassing me and won't stop calling?

Please read our online copy of the "Fair Debt Collection Practices Act" (courtesy of the Federal Trade Commission). This section will explain your rights and procedures to correct the situation.