Cambridge credit counseling has release it’s latest performance report showing the effectiveness of their program. This group was the very first credit counseling organization to actually release information that described the effectiveness of the credit counseling solution in order for consumer to make a good informed decision before joining.
Cambridge believes that the unﬁltered reporting of performance and satisfaction data is crucial to the health of the debt relief profession. Only through the presentation and examination of this data can the industry hope to improve its services, securing consumer and regulator conﬁdence in the process.
The release of this information now is not the big news. What is news is that the NFCC, AICCCA and other credit counseling trade associations have not embraced this level of transparency and encouraged their members to follow suit.
You would assume that nonprofit credit counselors that operate as charities for the public good would be all over the release of this type of information.
Not to be cynical, one could safely assume that the lack of transparency by most nonprofit credit counseling groups on this issue is because their performance data is not good. Otherwise, why hide it?
Let’s say their argument is that they don’t want to provide that information due to competition issues. Hello, knock, knock, you are a bloody nonprofit group to serve disadvantaged consumers and provide them with best advice. Transparency is not against your mission, it is your mission.
My hat really tips to Christopher Viale, the leader of Cambridge Credit Counseling. I hope those folks realize how lucky they are to have him at the helm and leading this charge for truth and transparency.
By leading the charge for openness and transparency on credit counseling performance, Cambridge Credit Counseling has set themselves apart from the industry and established themselves as a leader consumers can trust.
The Report Findings
- 21.2% of consumers that contacted the organization, enrolled in a Debt Management Plan.
- 49.4% of clients who enrolled in Q1 2006 have completed their DMP in full.
- The average initial fee for First Quarter 2011 enrollees was $39.96.
- The average monthly fee for First Quarter 2011 enrollees was $25.22.
- Cambridge waived or reduced 31.94% of initial fees and 36.29% of monthly fees in the First Quarter.
- 81.3% of new clients also developed a plan to build savings.
- 75.0% of long-term clients had revised their budget within the last 6 months.
- 31.3% of long-term clients were able to build savings during the last 6 months.
- The percentage of consumers worried about rising medical debts increased.
- Creditor revenue per client was $13.47 per month.
- Loss of income increased as a reason to seek assistance.
- Large increase in consumers who report tracking expenses to gain financial clarity. – Source
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