"Credit Repair" Clinics - The short answer: all of these are "Scammers"!
The FTC (Federal Trade Commission) probably said it best when their Consumer Protection Division Director,
Ms. Jodie Bernstein, first essentially stated: "The FTC has never seen a legitimate credit repair company..."
Credit Repair clinics mostly perform by trying to fool or overload those so-called "credit bureaus", the ones
Congress named the Credit Reporting Agencies (CRA's), by sending "frivolous disputes" with the hope that it
will confuse the CRAs into removing negative information. In our opinion, credit bureaus, while not "rocket
scientists" are much more savvy than that, and quickly pick up on this technique and then "flag" the consumer's
credit file as punishment so that, for years and years to come (7 years, 20 years, perhaps life), any future
contacts can be used against the consumer for trying to fool them. Those consumers are now actually "marked"
for life or until they find FSCC™ who can actually stop it! By the way, all "Credit Repair" clinics violate The
Credit Repair Organizations Act (CROA) and The Federal Telemarketing and Consumer Fraud and Abuse
Prevention Act, a.k.a. The Telemarketing Sales Rule, or TSR for short, as well as The Deceptive Trade
Practices Act (DTPA). If you tell FSCC™ about these scammers, they can help you get your money back!
"Forewarned is forearmed."
"Debt Settlement" Companies (a.k.a. Debt Negotiators or DS/N's) - The short answer: They are "simply
another more recent complex consumer scam"
Debt Settlement/Negotiator Companies claim they can settle all your unsecured debts in about 60 months (5
years) or maybe less for approximately half or 50% (maybe 40%?) of your unsecured debt plus their 15%
off-the-top fees which are all charged up front and they get theirs even if you, the consumer, don't. Now the new
Telemarketing Sales Rule (TSR, enacted 9/27/2010) will stop all that or they and "their friends" will eventually
go to jail. First of all, Debt Setllement/Negotiators must now (effective 9/27/2010) disclose all negative aspects
like, your credit file is quickly and totally destroyed for seven (7) to twenty (20) years because you immediately
stopped paying your unsecured creditors. DS/N's must now additionaly disclose they have no contract with
creditors and that many of their consumer customers will also get sued. By the way, the Feds and attorney
generals now publish that only 10% of their consumers successfully ever complete these programs; however,
customers can now use the new TSR to sue the Debt Settlement/Negotiators.
Lastly, the "mad-as-hell" creditors also extract more revenge by sending consumer customers and the IRS a
1099C tax lien which will stay on someone's credit file and keep them in that "Economic Bondage" situation for
fifteen (15) more years, therefore that additional blemish added to the already 7-12 negative years may add up
to half a lifetime. Since Sept. 27, 2010, all Debts Settlement/Negotiators have to tell all prospects verbally and
in writing what we just explained or you can sue them and their "helpers", like lead providers or TV and radio
stations... Again, "forewarned is forearmed!"
The NFCC/CCCS - our opinion is these are very sophisticated "collectors"
Again, our opinion, as well as some others, most are actually "collection-agencies-in- disguise" since they fail
to disclose to the consumer the creditor rebate - (the "Fair Share Offering" they call it). Collecting money for
creditors can be lucrative - CCCS/NFCC is estimated to have grossed between $20 to $24 billion last year -
but it is extremely hazardous to any consumer's credit health if they hire them. If one hires the NFCC/CCCS
and/or their friends, the companies would be performing what's called a DMP (Debt Management Program)
which allegedly settles all your unsecured debts but, it normally takes from three (3) to eleven (11) years to
complete a DMP project. However, your monthly payment goes to half but not the debts; in fact, the interest
However, all those negative items continue to move forward each month until the payoff which ends in five (5) to
eleven (11) or more years and credit file bad news remains all the time plus another 7 or more years ("makes
some folks actually feel better though"). But it's just another "Economic Bondage" creditor and credit bureau
scam. "Forewarned is forearmed."
Bankruptcy - The short answer: ten (10) to twelve (12) more years of "credit hell" unless you know FSCC™
and/or The People's Credit Bureau and do our
After Bankruptcy Cleanup program:
One could be a bankruptcy candidate, however, to qualify for a Chapter 7 bankruptcy, a.k.a. total unsecured
"debt wipeout" (which takes about 100 to 180 days or so...), you must qualify economically and by that I mean,
there is now a "means test." However, BK-7 debt wipeout leaves a 10-year credit file blemish. There is also
Bankruptcy, Chapter 13 - Re-ogranization - however that is normally a five (5) year project where you would still
pay approximately 30% of your unsecured debt with a monthly payment plus attorney and trustee fees plus
seven (7) more years of credit report "death" after the five (5) year bankruptcy, unless...
You find FSCC™ for our "After Bankruptcy Cleanup" program. FSCC™ does have the expertise to do true
after bankruptcy credit file clean-up... FAST! It normally takes about a year to free clients from that state of
And finally, there is the Do Nothing option... "time heals all wounds"... well, maybe.
However, our experience has shown that you can usually look forward to seven (7) to twenty (20) years of
"credit hell" if the powers that hate you (that's those creditors or their collector friends) actually obey the law
themselves. Good luck! Because they normally try to punish consumers until... well let me say, "they normally
give up when you die...!"
P.S. The following scenario is titled:
WHY YOU PROBABLY CAN'T OR DON"T WANT TO TRY TO DO THIS YOURSELF EVEN IF YOU ARE A
#1: The system has been stacked against you and all those other “players” will stick together to “punish” you so
you will always unquestionably want to pay them first.
#2: The "system players" hold most of the cards except one "wild card" that trumps all others and that is simply
"FSCC™" (ask us when you call and we will educate you as to why...)
"Debt Settlement" aka Negotiators
NFCC / CCCS - "Fair Share" & DMP's
Bankruptcy - Chapter(s) 7 or 13
Company Information | The Players | Services | Contact Us | Disclaimer
First Stone® Credit Counseling™
2701 West 15th Street #541 | Plano, TX | 75075-7541
972.235.1188 office | 972.235.1192 fax
8:30 a.m. to 5:00 p.m. CST or email us
"A" Rated Member Since 1990
"All the world is a stage, and all the men and
women (and big business) are merely players."
There are five (5) main categories of
companies/people offering "credit advice" or "credit
services" such as "credit repair", "identity
protection", credit counseling, bankruptcy, and/or
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 U.S.
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
Plano, Texas. Our objective is to help the consmer get out of trouble, get
edicated 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 know is Consumer 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”.