Question
non-profit debt consolidators charging a monthly fee??
i just signed a contract with a debt consolidator and they are supposedly saving me 60 bucks a month but when i looked at my account i noticed that what they were paying out didn't add up to what i was paying them. the only reason i went with this company is because they are non-profit so i called and complained and discovered that they are charging me 45 dollars a month as a service fee. but the service fee can't be for the paperwork because the first month they charged extra to get the paperwork together. is this normal or is there something wrong with this?? should i cancel my account with them or are they being honest?? remember they told me they are non-profit....
2 years ago - 7 answers
Best Answer
Chosen by Asker
I have worked with similar companies. I used CCCS (Consumer Credit Counseling Services) and was charged like $10-$15 a month. $45 seems a bit high to me. But in reality, companies like CCCS are truly non-profit because they only charge enough to keep themselves in business. They still have to pay the people that work there, the phone and electric bills for their office, etc. I would contact them and see if the monthly fee can be lowered.
by Meredith C
2 years ago
Asker's Rating: 
Other Answers
THem, like all others, are RIP OFFS. They take advantage of people that are broke.... they are not offering you any service that you cant easily do yourself. ALL of these companies, non-profit and for-profit, are RIPOFFS!!!!!
by Mike- 2 years ago
Yep, they all charge fees. And they take their payment first. When they get thru with your debts, your credit will be trashed. Non-profit does not mean charity.
by bdancer222- 2 years ago
These companies also receive money from the credit card companies themselves, its called "fair share". Basically these companies are middle men for the credit card companies. The credit card companies dictate how much interest is charged and what the minimum payment will be and there is no negotiation on that. Plus if you miss just one payment you are at risk of being kicked off the program, there is a very high percentage of people who do not graduate from these programs.
by steve b- 2 years ago
Yes...some of these companies are rip off... As some ppl said above, non profit doesnt equal to charity. eventhough they dont earn profit from you, they may need income to cover their expenses (rent, employee salary, utilities, and what not) And income does not equal to profit So they can claimed they are non-profit, but it doesnt mean they dont earn income If I were you, i will just get rid of this so-called debt consolidator company and do it myself (or find a better deal if u really want to) U are in debt already, so i dont think u want to add extra expense
by BigCat- 2 years ago