Ads
Credit counseling pitfalls
AmeriDebt Inc., a non-profit credit-counseling agency, which at one point of time seemed like a buffer against inevitable bankruptcy is everything a counseling agency should not be.
As Andris Pukke, who launched this agency finds himself in court yet again, the attention has moved to credit counseling agencies and what can go wrong with them. And AmeriDebt makes for a very good case study. Pukke was one of the select few that understood and took advantage of the credit card boom that hit the country in the last decade of the 20th century.
As people struggled with mounting debts and no way out of the mire of bankruptcy, such self-styled credit counselors mushroomed all across the country. And as the demand grew, the service became less personalized. Where you could once have face-to-face sessions with your counselor, all people had to do now was call toll-free numbers and get instant debt management information. Instant salvation in the age of instant popcorn!
They took advantage of the naiveté of the general public. These agencies hired in the hundreds and all the employees had to do was collect ‘voluntary contributions’. There was very little or no counseling offered to clients who were left high and dry once the money was collected from them. Meanwhile, creditors calls kept mounting and clients finally had no choice but file for bankruptcy – an option that they had been trying to avoid in all earnest.
And while his clients lost money and suffered bankruptcy; Pukke used their money to fund his lavish homes and exotic vacations. Pukke seems to have run out of luck finally.
But this experience is not without its lessons. And the most important one is that everything needs a check AND a re-check – and that includes your credit counselor’s credentials as well!
--
Did you enjoy this post?
Comments
Post a comment
Syndicate
Comments