A New Horizon Credit Counseling Services has engaged in a new approach to landing consumers for their debt management program, pay them.
According to A New Horizon Credit Counseling Service they will enroll consumers into their debt management plan for free and give them $100 for joining.
A New Horizon Credit Counseling Service calls this program their Win-Win Program. Clearly a much better name than the Bribe a Consumer Program.
Stephen Marcus, president of A New Horizon Credit Counseling Services says the program is off to a strong start.
Spurred by concerns over the slowed economic recovery, A New Horizon Credit Counseling a
nonprofit organization gives new clients $100 to get started.
Many people are truly struggling to pay their bills every month,” said Marcus, “and this new program helps to put them on the path to financial freedom.” The program, which rewards new clients with $100 to join, will be offered for a limited time and is intended to provide assistance to people suffering from the sluggish economic recovery. – Source
One thing is for certain, we’ve got to give them props on just laying it right out there.
Unfortunately I’m stuck on the issue that $100 inducement doesn’t seem to be a significant way to “provide assistance to people suffering from the sluggish economic recovery.” How does a $100 payment for joining help people to meet their obligations month after month?
I also can’t see anything on the A New Horizon site that would prevent a consumer from simply signing up for free, getting the $100 and then bailing from the program.
The marketing on their own website does not say consumers can not sign up to get their $100 and then bail. The disclaimer says “The offer is only available to new clients filing out the application form at this website or calling a New Horizon directly at our toll-free number. Not available in Texas.”
While A New Horizon is also billing itself as a nonprofit credit counselor, what they leave out is the IRS revoked their charitable status in 2009. – Source
If there is not already, there really should be some sort of regulation that clarifies for consumers if a credit counseling group that advertises it is a nonprofit group is really just a state nonprofit rather than a fully recognized IRS approved 501(c)3 nonprofit.
You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
Do you have a question you'd like to ask me for free? Go ahead and click here.
I can always use your help. If you have a tip or information you want to share, you can get it to me confidentially if you click here.
- Plastic Pandemic: US Credit Card Debt Surges Nearly 20% in Q1 2021! - May 12, 2023
- The IRS Resumes Collections Notices: What You Need to Know Before It’s Too Late - May 12, 2023
- How Can I Deal With Payday Loan Debt? - May 12, 2023
5 thoughts on “Nonprofit Credit Counselors Now Paying People to Join Debt Management Plan”
It makes sense that reward is done in that fashion as Alamo describes. It’s a logical way I suppose to setting up such a promotion if you’re going to do one.The specifics weren’t all that clear from the website text though. In fact, it does say “$100 paid to you”, which isn’t really correct since the money is actually paid to ones creditors on their behalf. Nitpicking?
I agree, seems deceptive since the offer is so much different than the implementation as stated by Alamo.
At the very least it runs into trouble with several state laws.
I am a loyal follower of your website and now a recent enrollee into a debt management program with A New Horizon. So far my experience has been very good, and having been in a debt management plan several years ago with a company that did not provide the services they promised, I have some knowledge. The $100 A New Horizon promises is paid on my behalf to my creditors and is split between my 1st and 3rd creditor payment to insure that I stay with the program. I think that A New Horizon has actually done a good thing here taking their own money and helping me to pay my debt with it rather than pay hundreds of thousands of dollars in TV and Radio ads to get new clients as so many 501 c 3’s do. As for the company not being a 501 c 3, but only being a state organized non-profit company (they are-I checked with the state of Florida), this was revealed to me when I asked the question as all good consumers should do. For me, all this means is that they pay their federal taxes, while the credit counseling company I had several years ago does not. They still get me the best deals with the creditors to pay off my debts, access to a certified counselor, and they are providing me with educational materials as well. I hope this helps to fill in the gaps. I’ll be sure to keep you informed if anything changes. Keep up the good work.
They call it Win-Win, but I’d say ” The We’re Desperate Program” probably fits better.
I’m hearing from a number of credit counseling groups that enrollment is down as much as 60% and they are losing more clients than they are signing up.