Who Do The Credit Counselors Work For?WHO SHOULD YOU TRUST? A while ago, I wrote an article that talked about the objectives of for-profit and non-profit companies. The non-profit companies are there to help the community and the for-profit companies make money to share with the stock holders and owners. One would think then that if the Consumer Credit Counselors were non-profit companies, they would be there as a service for the community.  As an idea, that’s true, but that’s where things end.

In truth, the Credit Counselors (non-profit company) work for the banks and credit card companies to collect money for them. In a show of appreciation, the banks and credit card companies give back 8% of what they receive from the Credit Counseling companies.

Of course, that 8% return acts as a donation for the credit card companies and the banks who are able to then “write it off” from their taxes.


When it comes to “negotiating” a lower interest rate with the banks and credit card companies, well, that’s another one of those ideas.  In truth, the banks and credit card companies tell the non-profit companies how much the interest rate will be.  There is no negotiation between the non-profit company and the bank.  None.

At one point, the banks and credit card companies shared their software with the non-profit companies so that transactions that happen can go back and forth very easily.

Finally, very few of the collection companies will work with the Consumer Credit Counseling group as far as lowering payments or interest rates.  By the time the debt is sold to a collection company, those collection companies will not give a return of 8% to the non-profit companies, so there is little value to the non-profit company to work with the collection companies and vice versa.

In reality, the non-profit, Consumer Credit Counseling companies work for the people that pay them the most money – and that is not you – that’s the banks and credit card companies.  The non-profit companies work for that 8% return for collecting your money.  That 8% is a lot more than your $25 monthly payment, that’s for sure!

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