Re: Re: First Consumers NB being shut down. on one of the lists for FICO reason codes there's one that says something like: Bankruptcy filed or consumer credit counseling on record Also, when you use a counseling one of the main things they do is reduce your monthly payments... which means if your cardholder agreement states you're to pay 3% of your outstanding balance and now you're paying 1%, you're not meeting the agreement... so your score will sequentially go from an R1 to R2 to R3 and I think it stops at R5. So, if you were over your head in debt but making timely payments (getting an R1 rating) then you are now making lesser payments than required, you are technically falling behind in your payments... so you will normally see your rating drop from R1 to R5 or so within a few months.. which is a pretty harsh current rating... now compound that times your number of accounts in CCCS and you not only get "derogatory current accounts" you get "multiple derogatory current accounts".... nice. Now: If you're well behind on your payments anyway then the rating may not be affected so much... but for people who are keeping up but are over their heads.. CCCS trashes your credit rating as you pull out of the debt. Also: 1. CCCS is run by and financed by your creditors but they act like they're consumer advocates and that they're on your side... They get paid on the back end by how much they get you to pay back (sound familiar??? Debt Collectors) 2. Most CCCS counselors don't tell their "clients" that their perfect rating will be trashed and that the notation on their credit reports of CCCS will be almost as bad (or as bad) as a bk without the corresponding benefit of wiping out the debt in full as a bk would. Now a counselor, when questioned, might tell you that the new FICO software won't trash your score for the CCCS notation: which is true. But, most companies haven't bought the new software.. and the cumulative effect of the numerous R5 current ratings will trash the file score anyway... so basically someone gets beaten on the head by trying to pay their debts back instead of wiping them out with a bk... what a system.
Re: Re: First Consumers NB being shut down. Just got an updated hard copy of Equ CR dated 02/6 from addy dispute. Went to dispute another addy online and when I entered the confirmation # of most recent CR, no mention of FCNB TL. I had sent FCNB a validation letter on 02/04, so I'm not sure if the lack of TL is because of that or luck???
