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FAQ Answers |
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What happens when I come to CCCS?
You receive
free credit counseling. You help set a budget and action plan with goals and
solutions. Debt Management, bankruptcy and financial plans are discussed. |
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What are the benefits of setting up a Debt Management
Plan?
- Some companies stop or reduce interest
- Most companies stop late payment fees and
over-limit charges
- Most companies accept smaller payments
- Collection calls cease
- CCCS bundles your unsecured debt and contacts your
creditors
- Proposals are sent to set up payment plans for
predetermined bills
- You retain control of your own credit and debt
- You continue to pay basic bills such as rent,
mortgage and utilities etc.
YOU gain control and remain in charge! |
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How do I start the program?You deposit a payment
with CCCS to cover your credit education program and the company's proposals
charge. The average payment is $50.00. This payment must be made before
proposals are mailed to creditors. This also pays for your book and classes of
our education program called Credit When Credit is Due. |
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What forms do I have to fill out and sign?The
forms include an application, list of debts, statement of services and a
contract for services. We formally begin working on your plan when signed
paperwork and funds are received. |
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What method of payment can I use?All payments
must be made by bank check or draft, cashiers check, money order, Western Union
or ACH transfers from your paycheck. You can receive free bank checks from the
John Deere Community Credit Union (all locations), Regions Bank (all
locations), the University of Northern Iowa Credit Union, and Cedar Falls
Credit Union in Cedar Falls. |
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When are payments due?Deposits are due by the
5th and the 20th. Payments received by the 5th are mailed to creditors on the
10th and payments received by the 20th go out the 25th. Payments received after
the due date go out the next payment date. All payments must be made to the
CCCS of Northeastern Iowa office in Waterloo. |
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Where does CCCS place my money?All client funds
go into a trust account owned by the creditors and CCCS for payment of client
bills. This trust account is audited by two sources each year. |
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What accounting do I receive?Each month, you
receive a client statement mailed on the 10th of the month detailing the
creditors and payments with new balances. The companies continue to send you
the statements. You need to bring your statements in every three months for
updating and comparison. Should you notice an error, call the accounts manager
at once. |
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Do I have to grant CCCS Power of Attorney?Yes,
just in order to work with your creditors. Unless we have the power to
negotiate on your behalf, we cannot acknowledge even knowing you. Your
creditors need to know we are your financial agents in this repayment
plan. |
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How long will repayment take?Payments are
determined according to creditor policy. Some companies require higher payments
than others. At the time you set up a contract, your counselor will give you an
estimated payoff which includes interest. Within 30 days of signing a contract,
CCCS will send you a "client pay out" which is a computer printout specifying a
more precise pay-out including all known interest rates. As policies change and
interest accrues, this will change as well. We can update this for you
annually. |
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How long does a contract last?Division of
Banking requires a debt management contract to be set up for 36-months. You
determine the length of contract yourself. If you can repay all you debt within
two years, the contract terminates when the debt is paid off. If your debt
extends beyond 36 months, we will amend the contract to continue the plan. |
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How is my credit affected by a Debt Management
Plan?Participation in the DMP may affect your credit report either
favorably or unfavorably, according to your creditor's policies with respect to
the DMP and your payment history prior to and during your participating in the
DMP. We will talk to loan officers to put in a good word for you. |
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What is this Debt Management Plan going to cost
me?The bulk cost of the Debt Management Plan is covered by credit
grantors. Clients contribute about $15.00 per month to cover the costs. These
contributions are determined by the client and counselor after reviewing the
financial picture. No one is ever denied service because of inability to
pay. |
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How confidential is my program and meeting with
CCCS?All information presented to this office remains with the employees
and is used to help you with your creditors. All employees and auditors sign
approved confidentiality statements in accordance with the State of Iowa
confidentiality laws. |
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Do I have to come to Waterloo, IA to meet with
you?No. You may handle all counseling and your Debt Management Program
through your computer, telephone, fax or by visiting a counselor in:
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