The Credit World Players

“All the world is a stage, and all the men and women (and big business) are merely players.” -William Shakespeare

There are five (5) main categories of companies/people offering “credit advice” or credit services such as “credit repair” and/or “credit counseling” and/or bankruptcy and/or “debt negotiation”. It is important to remember that few are legal under the laws that govern the United States, and most are not!

1. PCACC or Professional Consumer Advocate Credit Counselor's:
This describes First Stone^®. As required by law, First Stone^® Credit Counseling™ is an approved Consumer Advocate Credit Counseling organization, with a US Treasury/IRS 501(c)(3) certification. First Stone^® therefore operates legally under the credit laws of the United States of America, and is headquartered in Dallas Texas. Our objective is to help the consumer get out of trouble, get educated and clean-up their credit files, restoring their good name so they can fully reach their financial and personal life goals.

2. “Other” Consumer Credit Counseling Companies:
Those are really collection-agencies-in-disguise. The best known is Consumers Credit Counseling Services (CCCS), but now there are several "clones” because collecting money for creditors can be lucrative. However, it can be hazardous to consumer health!

CCCS and their parent company, the National Foundation for Credit Counseling (NFCC), are the largest and most widely known credit counseling group in the U.S. Although they are IRS certified, consumers need to understand that CCCS is really a “non-profit franchise”. You might ask yourself, “Who would buy or sell a ‘charitable franchise’?” They claim they receive nominal fees from their clients, but they actually receive substantial rebates or “Fair-Share Offerings” from the very creditors and collectors that are plaguing the consumer. Additionally, and this is very important, CCCS will not correct your credit files or even improve them. Why? They were created by the credit bureaus and bad news sells. Their only purpose is to get you to pay off all your debt (usually at the full amount, plus some interest) which makes them essentially “collector agencies”.

3. Credit Repair Clinics:
The biggest peril a consumer may face when hiring a “credit repair clinic” is that the sole tactic these organizations and/or individuals rely on is sending unsupported and “frivolous” disputes to the Credit Reporting Agencies (CRAs) i.e. credit bureaus, with the hope that it will fool them into removing negative information. Credit bureaus, while not Rocket Scientists, are more savvy than that, usually picking up on this technique and then “flagging” a consumers file so that any future contacts will be scrutinized as the consumer is considered a true “deadbeat,” whether valid or not. Additionally, Federal and State laws say that credit repair clinics must be totally free and cannot charge “up front” fees for their services. They must complete all the work (even if it takes years) before they can receive any payment from you. Anything else is a criminal act, or so says The Credit Repair Organizations Act and The Federal Telemarketing and Consumer Fraud and Abuse Prevention, Act.

4. Debt Negotiators:
Debt negotiators are the latest scam on the scene. They claim legality since they don't claim to improve anyone's credit record, credit history or credit rating. (If they do make any one of these claims they break the law.) However, they insinuate that paying off your debts for 50 cents on the dollar will get one out of credit trouble. If you believe that works without cleaning up your credit file we know of a “bridge in Brooklyn” or some “swamp land in Florida” you can buy! Blindly sending someone you don't know any money (no matter the percentage of a dollar owed) in advance to settle a debt ... really… how smart does that sound?

5. Debt Consolidators:
Many bankruptcy attorneys advertise debt consolidation under USC Title 11. This is not true debt consolidation as most people would think of it. It will also destroy your credit worthiness for the next seven (7) to ten (10) years, quite possibly longer, because often creditors remain vindictive against those that file bankruptcy. FSCC™ however, has the expertise to offer true After Bankruptcy credit file clean-up.

BEWARE: Here are others you must avoid!
Anyone claiming that they will give you a new identity for credit purposes. This is fraud and a criminal act! Car dealers who advertise that buying their car will rebuild your credit file. It's just not true and many do not even report to the CRAs.

Particularly beware of credit card companies that offer a card which also includes a “pay off” for a certain collection item. This is always a scam. Don't fall for this deception.