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.
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