Do you know about - Are Debt community clubs a Scam? The Shocking Truth Exposed
California Counseling! Again, for I know. Ready to share new things that are useful. You and your friends.This is one of my favourite all time question. For years the Canadian media has been picking up random information on debt community clubs from our American cousins. While there are tens of thousands of success stories, most of the published stories on debt community tend to be negative.
What I said. It isn't outcome that the actual about California Counseling. You see this article for home elevators that wish to know is California Counseling.How is Are Debt community clubs a Scam? The Shocking Truth Exposed
There's an old saying about not believing all things that you read. I've learned first hand over the years that this is true. Here are a join of examples why:
At the start of 2009 a newspaper called The Toronto Star did a story on me and my company. It was featured on the front page of the company section and was in a clear light. The story generated some good exposure for Total Debt leisure Inc. And for debt community in general. However, some facts I presented to the reporter were taken out of context or maybe he select to stretch the truth a slight to make for a more enthralling read. For example, I mentioned that debt can get away from just about whatever and one of our clients was a old Olympian. The final story read that that personel was an Olympic Gold Medalist which wasn't true. Many reporters tend to be freelance so they are paid to sell a good story; so as a result, it seems stories can and do get hyped up sometimes.
A few months later a negative example appeared on the evening newscast. Ctv which is a major Canadian newscast put out a three slight televised story on their "Consumer Alert" segment by reporter and financial writer Pat Foran. He talked about how debt community was potentially a scam, and how Marissa Ruiz (the victim) was very disappointed and that consumers should be wary. The story was packaged and presented as Canadian issue, and made viewers believe that Canadians were getting scammed left, right and center. When I researched the names in the story further, it turned out Ruiz was California resident and used an American debt community company that had a horrible Bbb rating. The incident appeared to be that of one rotten apple in the Us debt community industry. Apparently the reporter borrowed the story from someone else press publish he found, and packaged it as his own. Why did Pat Foran forget to mention these facts in his broadcast?
The story then wrapped up and interestingly handed off to a company called "Credit Canada" which is a non-profit credit counselling division in Toronto. After I reviewed the broadcast and made some notes, I emailed Pat Foran and Ctv about their televised slam of debt community in Canada. I really corrected 7 very considerable points that were not factual. My email was virtually ignored. From a legal perspective there is no remedy ready because of free speech; the media seems very immune.
Needless to say, my feelings about the media are somewhat mixed now.
Bankruptcy trustee's and credit counsellors have all had their say about debt community and why they think it's a scam. Let's look at their arguments.
Trustee's tend to argue that all debt community fees are collected up front before any work is done and no form of debt relief is ever given to the consumer. That's not true; in fact community fees are collected monthly throughout a 36 month program. And most community clubs like ours offer a assistance certify that returns any money paid that a community was never finalized on. If the client has enrolled for a 36 month plan then the fees are taken monthly and most clients sense their first community by around month 5-8. So how is a debt community company getting paid in full up front? We really get paid as settlements are arranged.
A friend of mine is a trustee in Bankruptcy, and a really wonderful guy, what I learned from him is that close to 100% of citizen going through bankruptcy or a buyer proposal (a form of bankruptcy) are in some state of default with the trustee. What that means is, they haven't met a major term of the requirements to be discharged from the debt, and apparently a large part of those citizen never do.
Guess what else I learned? The trustee really gets paid before the debtor is ever discharged from what they owe. Isn't that a classic case of the pot calling the kettle black? The trustee is in fact a court appointed agent to the creditors, so even though you pay the trustee to get you debt free, he is really looking after the creditor's best interest first. Not yours.
Here's an enthralling fact about debt community and our company I shared with my trustee friend: 70-80% of the citizen that enrol will perfect the program. The look of shock and awe on his face was priceless when I told him that. He thought the completion rate of citizen seeking debt community would be significantly less then his plans.
Non-profit credit Counsellors are someone else all time favourite of mine; they are in bed with the banks, media, politicians and other non-profit companies.
My comprehension of credit counselling is that more then 60% of all citizen enrolled will drop out of their debt relief schedule before it's completed.
The first thing to understand is that "non-profit" does not mean free, every company needs to earn money to keep its doors open and pay take care of rent and payroll. All that really needs to happen to verbalize a non-profit status from the government is that the company needs to meet clear requirements and can't show a profit at the end of the year. That seems pretty simple and easy to do; all the principals of the company would need to do at the end of the year is bonus out any profits to themselves.
Credit counsellors have somehow managed to get a lot of positive, free and unexplained media exposure that debt community doesn't get because of their non-profit status.
The other day when a local politician appeared on the news to discuss new credit card legislation in Canada; somehow a spokeswoman from non-profit credit counselling, again credit Canada, was right there beside him. I wonder why I wasn't invited to speak as a devotee on the new credit card legislation. I mean the non-profit "specialist" who appeared wasn't even able to reason simple math in her head, let alone lead any real dialogue to the discussion.
On several provincial government websites that talk about debt relief options, they all seem to defer to non-profit credit counselling as the rejoinder to all debt problems. This politician and host on Tv did the same thing.
Some creditors will really tell a financially distressed debtor to go and use a non-profit credit counselling company if they are having money issues. Here's a big question. Why would a creditor only refer the debtor to non-profit credit counselling? You don't need to look very far for the answer; credit counselling is really a kinder and gentler range division for the banks.
This association between credit counselling and banks has been criticized for years. credit counsellors get more money back to the creditors over a longer duration of time, plus many get what's called a "fair share" payment from the banks. So your creditors are really paying the credit counsellors to regain the debt.
Don't let the "non-profit" banner fool you, credit counselling is working more for the creditors, then it is for you. Did you know that if you owed ,000 in credit card debt, it would probably cost you about ,000 in total over 5 years with credit counselling? With debt community your total cost would be around ,000 over 3 years
The Internet and media is a prime example of unregulated free speech, so it's easy for whatever to post opinions, spread rumours, tell lies, create controversy or even build entire Web sites devoted to whatever topic is desired, regularly without any consequence. Unfortunately, this means the Internet and media is a exquisite medium of negative "information" about countless number of companies, organizations, and individuals. Even respected, successful, high-profile clubs like Toyota, McDonald's and Wal-Mart are targets for negative communications.
Is the information factual? That's something you have to decide, but before you do, be sure you have all the facts and are clear about the accuracy and credibility of the source of any information found on the Internet and media.
It begs the question: Why are the other debt relief programs like bankruptcy and credit counselling feeling so threatened by the growth of the debt community industry? Are we really that much good of a debt relief option to their programs? I guess so.
I hope you will get new knowledge about California Counseling. Where you can put to use in your daily life. And just remember, your reaction is California Counseling.Read more.. basics Are Debt community clubs a Scam? The Shocking Truth Exposed. View Related articles related to California Counseling. I Roll below. I even have counseled my friends to help share the Facebook Twitter Like Tweet. Can you share Are Debt community clubs a Scam? The Shocking Truth Exposed.
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