As promised, here is the story of my encounter with a non-profit “consumer credit counseling” service that screwed me royally, and forced me into bankruptcy.
When I finally realized I was too deep in debt, it was almost too late. Bill collectors were calling at all hours of the day and night, and I was losing sleep because of the turmoil I had created for myself. Some people at work were encouraging me to file bankruptcy and others told me to seek the help of a credit counseling service.
Remember, at the time there was no internet, and I didn’t know of any other way to look up a debt consolidation program.
I thought for sure, the day I walked into the counseling service office that I was just months away from being able to get my financial life back on track. I signed up for their program and agreed to all their terms. Each payday, they took my paycheck and gave me a small “allowance” for food and other living expenses. I figured, like most people, that this would work. They would contact my creditors, who would agree to lower payments, etc, and I would be debt free in no time.
Three months, to the day, that I walked into the credit counseling center, my truck was repossessed. I called the credit counselor office and found out, after someone did some checking for me, that they were taking my money, and making reduced payments, but they hadn’t contacted any of my creditors who never agreed to those payments.
Three months. That’s how long it took them to totally screw me over. I contacted all of my creditors myself to explain what happened and they didn’t care, of course they wouldn’t. Three days later I filed bankruptcy, and I never found out what they did with all of my money.
Things have changed a lot since that all happened to me though, and I doubt the same thing happens to many people, but the Internet at our disposal finding someone to help with debt consolidation, debt settlement, or credit repair is just a few fingerstrokes away.
