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FAQs
Frequently
Asked Questions By Creditors
What
is Consumer Credit Counseling Services?
So,
who is CCCS?
Why is it that CCCS contacted
you?
Why did our customer choose
to see CCCS instead of us about their debt?
So, what does CCCS do
for the individual?
Now what?
And then…?
Wait a minute! What’s this part about
“fair share"?
Can a mutual client use additional credit?
On the other hand what will happen if
I decide to reject the proposal and pursue my normal collection
activities?
I am interested but need
to know more. What should I do?
The fine print.
What
is Consumer Credit Counseling Services?
Consumer Credit Counseling Services (CCCS) is a network of over
170 non-profit organizations throughout the U.S., Canada and Puerto
Rico dedicated to helping individuals find their way back to financial
health. Nationally, we are represented by our trade association
the National Foundation
for Consumer Credit (NFCC).
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So,
who is CCCS of Central Pennsylvania?
We are CCCS of Central Pennsylvania. Our main office is located
in Lancaster at 439 East King Street, Lancaster, PA. We are also
a division of Tabor Community Services, Inc., a non-profit organization
concerned mainly with issues surrounding housing and money management.
Mostly, we work with people who are in danger of becoming homeless
or going bankrupt.
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Why
is it that CCCS contacted you?
The person for whom we sent the proposal is experiencing severe
financial difficult – severe enough to need our help in restructuring
their debt and negotiating repayment on that debt. You happen to
be one of their creditors.
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Why
did the customer choose to see CCCS instead of us about their debt?
We know from our experience that creditors are often willing to
help when people are having difficulty repaying a debt. However,
there are occasions where an individual’s debt is so great
with so many creditors that they feel their only option might be
bankruptcy. When some creditors sense this possibility they refer
the individual to us. Chances are, if an individual is having trouble
paying you, they are having trouble paying someone else.
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So,
what does CCCS do for the individual?
First, we meet with the client and put together a picture of their
finances. Most clients have no idea about what all is involved.
Some even come to their appointments with several weeks worth of
unopened mail. When we construct that picture we look at income,
living expenses and debt load. In order to find solutions to their
problems we even look for clues in personal information. The initial
visit takes about two hours and covers six pages of information.
At the end of the visit we will know whether or not a “Debt
Management Plan” or “DMP” is possible or appropriate.
For approximately 1 out of 3 individuals who come to see us a DMP
appears to be the solution. The remaining two out of three either
need to rework their budgets or visit an attorney.
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Now
what?
This is where you come in. Once an individual enters our Debt Management
Plan we set out to negotiate (or renegotiate, as the case may be)
the debt repayment schedule. To ensure that all creditors receive
their fair portion, the proposal you have is nearly identical to
the ones received by our client’s other creditors. The proposal
will give you information about the person’s income, monthly
living expenses, the size of their debt, how much is paid monthly
on that debt, and how many creditors they have. Additional information
includes how much they owe you and what we propose be paid on that
debt.
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And
then…
We wait for your response (which often is “who are you and
what are our customers doing there”). The response we are waiting
for is the return of the proposal marked “accept” or “reject.”
The client gives us a sum of money each month to be divided up among
all their creditors. That means we will be passing some of that
on to you.
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Wait
a minute! What’s this part about “fair share?”
As a non-profit we have few sources of income. The few that we do
have are made up of annual charitable contributions, a contribution
from the client (typically about $5-$10 monthly) and the “fair
share.” Because we are a 501c (3) non-profit, the contribution
you make through this fair share contribution is tax deductible.
Because the “fair share contribution” is just that, we
will send money to you each month regardless of whether or not you
choose to contribute. In other words, we need the money but,
if it is the difference between accepting and rejecting the proposal
– please accept the proposal and we simply will not charge
you for the service.
It sounds okay… I’ll
give you the contribution but then I will take it out of what the
customer pays us through you.
Please don’t! If you are
planning to take it out of the client’s payment we would rather
you decline to pay the fair share. Our goal is to assist the client
in paying off their debts and not to contribute to their payment
problems.
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Can
a mutual client use additional credit?.
Absolutely not! Well, mostly not. Any additional use of credit is
grounds for termination from the debt management program. However,
there are instances where it is unavoidable. Our client may need
to purchase a vehicle in order to continue their employment. Also,
since homeownership is often a personal goal of the client, a mortgage
may be sought in the closing months of the plan. In each case, the
client must consult with the counselor to see if their actions will
jeopardize the success of the repayment plan. Failure to do so will
result in termination of services to the client.
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On
the other hand what will happen if I decide to reject the proposal
and pursue my normal collection activities?
Unfortunately for both you and
your customer you are not their only creditor. Since CCCS is not
a “bill paying service” the clients we put on Debt Management
Plans usually have many creditors - some calling every day. Some
of these creditors have already decided that if CCCS helps to facilitate
a plan whereby all creditors work together to help the client avoid
bankruptcy everyone wins! The best way to help make sure this plan
works is for you to accept our invitation to join this “team.”
If you chose not to join in this effort it may force the plan to
fail – leaving the individual with a temptation to give up
and declare bankruptcy.
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I
am interested but need to know more. What should I do?
Pick up the phone and call us
immediately. If you would like a special visit by a CCCS representative
we would be delighted to sit down with you. We can be reached Monday
through Friday from 9:00 am to 4:00 pm at 717.397.5182 or email
us at cccs@tabornet.org.
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The
fine print.
CCCS of Central Pennsylvania develops and executes all plans within
the framework of fair and equitable treatment of all creditors.
All creditors are invited to participate in the plan and will be
served by the plan regardless of the creditor’s “fair
share” contribution. All client payments into Debt Management
Plans are held in a non-interest bearing trust account and are disbursed
to creditors each month. As a creditor you will be offered information
regarding the client’s monthly budget amount, total debt (not
including mortgages), total monthly payment on that debt, total
monthly net income, number of creditors, and client address. You
will also be notified in the event that the client terminates the
plan before completion. Information and detail beyond this may not
be released without the client’s written permission.
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