Consumer Credit Counseling groups are popping up all over the internet and on TV adds. I have a major pet peeve about these companies. Most of the companies are legit in what they offer and what they do, but what I have a problem is that they do not disclose to the consumer the effect it will have on their credit rating by using their services.

When you use the service of a Consumer Credit Counseling agency or “3 C’s”, “CCC” as they are know in the industry, you need to be aware that you will suffer some major re-precautions from the use of their service. The use of their service will appear on your credit report as “under debt management” or “Consumer Credit Couseling’ or many other possible scenarios. The future credit companies will then categorize you in the same manner as if you where filing bankruptcy under the chapter 13 title of the US Bankruptcy code. Your record is damage for 10 years. They never tell you this but if you read the find print you will find it.

So if you plan to use one of these services please make sure you clearly know what you want to do. You may want to simply file a Chapter 13. Keep in mind that new changes in the Bankruptcy laws require that you attend a CCC training or counseling session in order to proceed with a bankruptcy. I find it rather dumb. The changes in the Bankruptcy law was lobbied by large CCC companies as an effort to drive more business in their direction. I simply see that CCC’s are a private method of doing Chapter 13 with no added benefit.

The CCC are one more idea that qualifies in the “fleecing of America” category in my book.