Consumer Credit Reviews
Reviews of Consumer Credit from real customers
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American Consumer Credit Counseling, AKA Consumer Credit, has been in the credit and debt consolidation business for over 26 years. Consumer Credit is a non-profit organization that provides credit counseling and debt management programs. Their services are available nationwide and have no minimum debt requirement. Consumer Credit offers a free consultation with certified counselors. They are also accredited by the NFC and AICCCA.
The Good
- Free consultation with certified counselors
- Accredited by NFC and AICCCA
- No minimum debt requirement
Free Consultation
Consumer Credit offers services to help people regain control of their finances by providing professionally trained and certified counselors to meet the individual needs of consumers saddled with unsecured debt. They encourage those under economic hardship to call their toll-free number for a consultation to determine if a counseling session or another one of their product offerings would be of benefit.
Counseling sessions are provided free of charge and are geared to assess the current financial struggle of each caller. A certified counselor will help consumers paint of picture of their financial status by reviewing income, assets, and expenses. Ultimately, they will create a budget which will work to meet the needs of struggling families. They may also recommend a debt management plan to those having difficulty keeping up with their monthly payments to creditors.
Accreditations
Consumer Credit is accredited by the AICCCA and NFC. These accreditations indicate that Consumer Credit is dedicated to best practices in the industry. These accreditations guarantee a level of quality in services and business practices. Additionally, Consumer Credit’s credit counselors are all certified.
The Bad
- No ISO certification
- Lack of transparency
- No outline of risks
No ISO Certification
Although Consumer Credit is a non-profit organization, it lacks the critical ISO certification that we look for in these kinds of companies. ISO 9001 would indicate that Consumer Credit is undergoing regular independent audits to verify that they are operating as a legitimate non-profit. While this is not a deal breaker, we would like to see this certification.
Lack of Transparency
Perhaps more important to most customers is the fact that Consumer Credit doesn’t disclose the average interest rates on its debt consolidation plans. This critical piece of information is what allows customers to see how affordable a company is compared to the competition, especially when consolidating large amounts of debt. We would also like to see Consumer Credit disclose monthly and up-front fees.
No Outline of Risks
The company would do well to outline risks associated with a debt management plan and inform consumers of those pitfalls. Consumers have the option to cancel services at any time without penalty from the company; however, keep in mind there may be penalties associated with creditors such as interest rate spikes and late fees being added back to accounts if the program is canceled.
The Bottom Line
Consumer Credit is well accredited, available nationwide, and offers certified counselors to help every step of the way. However, we dislike the lack of transparency in their fees and interest rates. At this time we do not recommend working with Consumer Credit.
About Consumer Credit
American Consumer Credit Counseling (Consumer Credit) is a non-profit credit counseling agency that provides customers with a credit counselor to build a debt management plan. This debt management plan helps customers consolidate their debt into one monthly payment with reduced interest rates. Consumer Credit disperses this monthly payment to all of the creditors accordingly. Consumer Credit also offers customers various financial counseling services such as credit, bankruptcy, housing, and student loans.
- Takes your existing debt and try to settle with your creditors for a lower amount. If you pay off the settled amount, your debt will be considered paid in full.
- Negotiates with your creditors on your behalf.
- Fee based on a percentage of your total starting debt or a percentage of the debt they save you.
- Most settlement companies have you create a separate "escrow" account where you will make monthly contributions over a certain amount of time to contribute to your settlement. Once there is a substantial amount of funds to show your creditors, the settlement company will try to negotiate a lower amount of debt.
- Combines all your debts and creditors into one monthly payment.
- Allows you to pay one monthly payment to the consolidation company, instead of multiple payments to different creditors.
- You no longer owe your original creditors; instead you pay one monthly payment to your consolidation company.
- Consolidation companies can help negotiate lower interest rates on your debts and help lower your total debt payment in the long run. A lower interest rate will lower the amount you owe in the end.
- Allows you to consolidate all your different debts into one personal loan that can be paid off over time.
- Can offer borrowers a lower interest rate with a longer payback term (compared to high-interest credit cards or medical bills). This will lower the amount of money required to pay off the loan over time.
- Personal loan debt consolidation can be an effective way to raise your credit score quickly (within 3-6 months).
- Borrowers can receive funds from their loan within only a few days.
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