Consumer
Credit Counseling Service
of Linn and Benton Counties
Frequently Asked Questions
- What is CCCS?
- What is a Debt Management Plan?
- Do all creditors work with CCCS?
- How will you help me?
- What will it cost?
- Will a DMP hurt my credit rating?
- How long do counseling sessions take?
- Do you provide day care if I bring my children to the counseling session?
- What is bankruptcy?
- Will I have to file bankruptcy?
- What if I can't come in person for a counseling session?
- Do you offer education programs?
- What type of housing counseling do you do?
- How can I contact you?
What is CCCS?
Consumer Credit Counseling Service is a not-for-profit that helps families understand their financial situation. We analyze the client's data to understand what problems the family is having and what solutions may be available to them. For some clients, a Debt Management Plan (DMP) may be appropriate.
Could you benefit from financial counseling?
Take our brief debt test to find out.
- Are you arguing with family or friends over your bills?
- Are you always playing "catch up"?
- Can you only make the minimum payments on your charge accounts?
- Are you living from paycheck to paycheck?
- Do you charge more than you repay each month?
- Are you unable to build a savings emergency fund?
- Do you borrow to pay regular expenses, such as food and utilities?
- Would you be in a financial panic if you lost your job?
- Are your creditors calling because your payments are late?
- Are you afraid to add up your total debt?
- Is more than 20% of your take-home income going to pay bills?
- Are your credit lines all used up?
- Do you find yourself being charged over limit and late fees each month?
- Are creditors threatening legal action?
Seeking help is not a sign of failure, rather an effort to use the resources in your local community to relieve stress, correct burdens, or avoid problems. Contact Us.
What is a Debt Management Plan?
A DMP is a plan to repay creditors, using the client's own monies, funneled through the counseling service. Most major creditors understand that granting concessions to clients will result in the family repaying more of their debt. Some of these concessions include reducing or eliminating interest charges, stopping late or overlimit fees, withholding a delinquent account from collections, and preventing garnishments.
I/We understand that most of CCCS’s funding comes from voluntary contributions from creditors who participate in Debt Management Plans (DMPs). Since creditors have a financial interest in getting paid, most are willing to make a contribution to help fund our agency. The creditors give us voluntary contributions ranging from 0 to 15% of payments you make through your DMP. However, your accounts with your creditors are to be credited with one hundred percent (100%) of the amount you pay through us and we will work with all your creditors regardless of whether they contribute to our agency. To be 100% credited, you have an obligation to inform CCCS if full payment is not posted.
Do all creditors work with CCCS?
No, unfortunately, not all creditors grant the best concessions, nor do all creditors want to work with CCCS. However, we do know which creditors are most likely to work with our DMP program. In fact, there are many creditors who will not grant the family any concessions unless they are enrolled on the DMP program. Most creditors will stop calling you once you are making your payments though us, unless you miss your deposits with our agency.
How will you help me?
We will help you understand your financial situation better, and explain what creditors can and cannot do. We will suggest possible alternatives to what you are currently doing, and help you figure out how long it will take you to get out of debt.
What will it cost?
CCCS charges a nominal counseling or set up fee, and a monthly fee to defray the expenses of servicing your account and sending your creditors payments. See our current fee schedule. We are approved to issue certificates in compliance with the Bankruptcy Code. Approval does not endorse or assure the quality of an Agency’s services. Call or email our office to get the paperwork for the bankruptcy pre-filing or pre-discharge instructional course.
Will a DMP hurt my credit rating?
It is very possible that a DMP could hurt your credit rating. Any time a creditor receives an amount less than their monthly statement requests, the creditor is very likely to report the account as delinquent. Because these payments are going to be made for many months, it is possible for the negative rating to have a cumulative effect.
Your credit score is also affected by the amount of available credit you have. Upon enrollment in a dmp, your available credit will be zero, causing your credit score to lower.
All credit information, both positive and negative, stays on the credit reports for 7 years after the date of last activity on the account. The exceptions to this are Chapter 7 bankruptcy, which stays on the credit report for 10 years and judgments.
How long do counseling sessions take?
The debt management and budgeting counseling session lasts approximately one hour. Bankruptcy counseling lasts an average of ninety minutes.
Do you provide day care if I bring my children to the counseling session?
No, your children will be in the same counseling room with you and the counselor. To preserve the integrity of your counseling session, we suggest you arrange child care for your children rather than bring them to the session.
What is bankruptcy?
Bankruptcy laws are designed to deal with financial failure and grants a 'financial fresh start' to a family. There are two primary forms of bankruptcy available to families: Chapter 7 which wipes out most unsecured debt, and Chapter 13 which is a repayment plan to creditors. Check with your attorney for more information on bankruptcy.
Will I have to file bankruptcy?
We will help you analyze your situation. It will be up to you to decide if you want to consult an attorney. Many attorneys suggest an appointment with us to see if there is another workable solution before you file a bankruptcy. If you elect to file bankruptcy, you will need to receive a pre-filing counseling session from an agency such as CCCS.
What if I can't come in person for a counseling session?
We offer counseling in person or by mail for families wanting to repay their debt. Before we counsel you, we need to get forms to you to fill out, so we will have all the information we need to assist you. The CCCS application form looks at your income, your monthly living expenses (such as rent, utilities, car insurance, food, etc), and a list of the creditors to whom you own money. We will also have you read and sign a fee schedule, Statement of Counseling Services, and our Privacy Policy. After counseling, we will give you a Client Action Plan that summarizes the information we found in the session with you. If you are going to utilize our DMP, we will have a Debt Management Agreement explaining your plan.
We do not do mail, internet or phone counseling for people filing bankruptcy.
Do you offer education programs?
Every month, we offer budgeting classes at our office. Contact us for dates and times. We also offer educational presentations to groups, such as high school classes, Head Start programs, employee groups, etc. We offer many topics, so call for a presentation.
What type of housing counseling do you do?
CCCS offers the following housing counseling services: Pre-purchase, post-purchase, and rental counseling. Pre-purchase topics include how much house you can afford, selecting the right house, the mortgage application process, loan and real estate terms, and what happens at closing. Renters may come to CCCS to consult on issues about rent increases, landlord problems, budgeting, and money management.
For other housing issues, contact:
Linn Benton Housing Authority (926-4497) for Section 8 and low-income
Willamette Neighborhood Housing Services (752-7220) for homebuyer education; pre- and post-purchase housing counseling; and rental counseling.
Legal Aid (926-8678) for renter/landlord issues (evictions, habitability)
NeighborWorks Helpline (www.995hope.org) (888-995-4673)
Money Management International (866-557-2227) for default mortgage and foreclosure prevention.
Contact us.
Our office is open Monday through Thursday 8:00 AM-5:00 PM, and Fridays from 8:00 AM until Noon, excluding holidays. Our phone number is (541) 926-5843. Our office is located at 214 NW Hickory, Albany, Oregon.
For more information, please contact us: |
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