Consumer Credit Counseling Agency | Consumer Debt Counselors (2024)

FAQs

Is consumer credit counseling legit? ›

American Consumer Credit Counseling is a legitimate nonprofit credit counseling organization. ACCC is accredited with the Better Business Bureau (BBB) and has a 4.93-star rating. As of May 2023, the company does not have a Trustpilot rating. As mentioned, American Consumer Credit Counseling is a member of the NFCC.

Finding a counselor you can trust

Once you have a list of potential candidates, vet each one with your state's Attorney General, as well as your local consumer protection agency. They can tell you if the counseling agency is licensed to do business in your state and if any complaints are on file.

A reputable credit counseling agency should send you free information about itself and the services it provides without requiring you to provide any details about your situation. If a firm doesn't do that, consider it a red flag and go elsewhere for help.

Every NFCC member agency is accredited by the Council on Accreditation (COA) to ensure standards are maintained as a nonprofit financial counseling agency. COA is an independent, third party, nonprofit accrediting organization.

Completion Rates.

This completion rate exceeds that of the Chapter 13 bankruptcy completion rate of 33% and the National Foundation for Credit Counseling reported completion rate of credit counseling companies at 21%.

The difference between debt counselling and debt review. Debt counselling is the service that a debt counsellor provides to an over-indebted South African consumer struggling with their debt, and debt review is a regulated programme that a debt counsellor will place successful debt counselling applicants under.

Under debt management plans credit counselors usually do not negotiate any reduction in the amounts you owe - instead, they can lower your overall monthly payment. They may do so by getting the creditor to increase the time period over which you can repay a loan. They may also get creditors to lower the interest rates.

Debt counselling can help your credit score.

When you enter the debt counselling process, creditors can no longer add any further negative information to your credit profile because you will now be under the protection of the National Credit Act.

How else might seeing a credit counselor help someone improve their finances? ›

Credit counseling organizations can advise you on your money and debts, help you with a budget, develop debt management plans, and offer money management workshops.

Look for a credit counselor who can do the most for you. You might have to pay some money for help. But a good credit counselor will not ask you to pay in advance.

You're at risk of missing payments

Debt consolidation can be a good idea if you're having a tough time juggling your financial obligations. Consolidating can put your debt in one place, so you have a single monthly payment. That might help you stick to your repayment schedule and avoid any adverse consequences.

Credit counseling organizations are usually non-profit organizations, and their counselors are certified and trained in the areas of consumer credit, money and debt management, and budgeting. Counselors discuss your financial situation with you and help you develop a personalized plan to solve your money problems.

Enrolling in a debt counseling and management program like the one offered by ACCC will not negatively impact your credit so long as you continue to make on-time payments.

Not directly. While merely talking to a credit counselor won't impact your credit score, taking action on any debt management plans they recommend could.

Final answer:

The Consumer Credit Counseling Service is financially supported by the National Foundation for Consumer Credit and community-minded firms and individuals.