|
Debt
management program:
Dealing with creditors
| More
about the CCCS debt management
program
|
|
|
24/
7 365 days a year
Free Counseling Service |
|
|
|
Will my creditors
still contact me? Will
my creditors stop finance charges?
Will I receive
statements from my creditors?
Can creditors
take legal action while I'm the debt management program?
Will
my creditors still contact me?
Once creditors begin
to receive regular payments through CCCS, they should
stop calling you. If they continue to call after you
are enrolled in the debt management program, do not
refuse to talk to them. Instead, encourage them to contact
our Client Services Department.
Some creditor representatives may
tell you that they do not accept CCCS payments or that
they have never heard of us. Do not be intimidated.
We can verify whether a creditor does or does not accept
our program. The majority of creditors elect to work
with us. Call Client Services for confirmation. Some
creditors will accept payments from us, but will not
confirm an accepted proposal.
You may continue to receive
routine collection letters from your creditors during
your first three months on a debt management program.
The majority of these letters are computer generated
and are no cause for alarm. However, if you receive
correspondence concerning legal action or regarding
the transfer of your account from one creditor
to another, please contact Client Services so we can
help you verify that your payments are posted correctly.
Will
my creditors stop finance charges?
Many creditors agree to stop or reduce finance
charges. However, it is important for you to remember
that not all creditors stop interest charges. Also,
creditors that agree to stop or reduce finance charges
or late fees are likely to resume the charges if payments
are missed. If your CCCS due date does not coincide
with your creditors’ due dates you will need to
contact creditors and request a change in due date.
Some creditors will do so only at the request of
the client.
Will
I receive statements from my creditors?
Unless a creditor has written off your account,
usually you will continue to receive monthly statements.
When you receive your monthly statement from CCCS, please
compare it to the monthly statements from your creditors.
It is essential to monitor your creditor statements
monthly to ensure interest and late fee concessions
are obtained, balances are within $50 of those reflected
on your CCCS statement, and payments are posted
correctly. We suggest you send a copy of each of these
monthly statements every six months to our Client Services
Department. The balance on your CCCS statement
can then be updated to include any finance charges or
late fees added by your creditors. In addition, please
advise Client Services immediately if any of your creditors’
and CCCS statements differ by more than $50. CCCS attempts
to verify balances only as an account is nearing
payoff.
Can
creditors take legal action while I'm on DMP?
Most creditors
prefer to receive payments through CCCS rather than
go to court. Many stop legal action or hold judgments
in suspension if they are receiving regular payments
through CCCS. However, some creditors may elect to take
legal action. If you receive a summons to court, follow
all instructions of the court or your attorney. Contact
CCCS immediately so we can assist you in determining
if you need a follow-up appointment scheduled with your
counselor. You may wish to provide the judge or mediator
with a copy of your CCCS program paperwork as evidence
of your good faith effort to repay your debt. Please
remember that CCCS does not provide legal advice and
that you are responsible for engaging personal legal
services if needed.
|
