Tabor Community Services: Financial & Homeownership Services: Consumer Credit Counseling Service of Central PA: FAQs By Creditors

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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).

So, who is CCCS of Central Pennsylvania?
We are 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.

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.

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.

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 2 out of 3 either need to rework their budgets or visit an attorney.

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.

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.

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.

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.

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, then 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 choose 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.

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 8:30 am to 4:30 pm at 717.397.5182 ext. 452 or email us at cccs@tabornet.org

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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