Q & A's about the CCCS of Alaska Debt Management Plan

Where do I go from here?
How long will my DMP take to complete?
What can I do to ensure success in my DMP?
What if I need to speak with my counselor?
Will CCCS contact my creditors in my DMP?
Why must all my creditors be included in my DMP?
What if a creditor does not accept the plan?
Will my creditors still contact me?
Will my creditors stop finance charges on my accounts now that I am working with CCCS?
Will I receive a record of my deposits to CCCS?
Will I still receive statements from my creditors?
What deposit options are available?
CCCS can not accept personal checks.
When is my deposit due?
Can I increase my monthly deposit to CCCS?
What happens if I receive a large sum of money and I want to pay off my account early?
What if my deposit is late?
What if I miss a deposit?
What if I lose my job?
Can my creditors take legal action against me while I’m enrolled in the DMP?
Can my creditors garnish my Permanent Fund Dividend?
Will creditors re-establish credit?
Can CCCS fix my credit report or clean it up?
Will my credit rating be protected by using CCCS?
What if I have to borrow money while on my DMP?
What if I want to withdraw from the DMP?
How is CCCS funded?
Client Bill of Rights

Where do I go from here?
You have taken the most difficult step toward getting out of debt by contacting our office and seeking professional help.

When experiencing financial problems, it is sometimes hard to face facts. At this moment you may be feeling frustration, anger, fear or anxiety. That’s normal.

The Debt Management Plan (DMP) established for you by your CCCS of Alaska counselor provides a link between you and your creditors. Our Account Representatives are available to help you with any problems or questions you or your creditors may have for the duration of your DMP.

How long will my DMP take to complete?
Clients enrolling in a Debt Management Plan receive an estimate of the length of time it will take to complete their DMP. This written estimate, or pay-out forecast, identifies all debts that are included in your plan, the total estimated debt owed to each of your creditors, the proposed payment to each creditor, and the anticipated number of months necessary to eliminate the debt, assuming all payments are made on time and in full. As your plan progresses you may request an updated version of this forecast by contacting an Account Representative.

What can I do to ensure success in my Debt Management Plan?

1. Make your deposits on time. Auto deposit provides the most timely, convenient and dependable method of payment by deducting your monthly deposit directly from your checking or savings account. You may send cashier’s checks or money orders. No personal checks or cash are accepted.
2. Closely monitor your creditors’ statements. It is up to you to monitor your monthly statements to ensure creditors have reduced interest rates or stopped late fees, if applicable, and CCCS of Alaska payments are being properly credited. If your specific creditors reduce interest and fees, it can take up to three months before these reductions are noted on your statements. CCCS of Alaska does not see your monthly statements from creditors. Keep all statements in a folder or binder in case you need them for future reference. Also, keep us informed if any accounts are turned over to collection agencies or if any creditor notifies you of an account number or address change.
3. Stay in touch. Contact an Account Representative immediately if any problems arise. If you don’t understand something about your creditors’ statements or mailings, don’t panic! Call or email us. We’ve been dealing successfully with concerned creditors and clients since 1981.
4. Don’t make any payments directly to your creditors unless you have discussed this with an Account Representative. Send all deposits, including any late or extra payments you might be able to make, directly to CCCS of Alaska.
5. Don’t apply for additional credit without first talking with your counselor. If you do, you will place your DMP in jeopardy.
6. Update personal information. Contact us immediately with any change in your name, address, telephone number or email address.
7. Don’t miss deposits or make late deposits to CCCS of Alaska for any reason. If you do, your creditors may resume their regular collection activities or reinstate regular interest rates and fees.

What if I need to speak with my counselor?
While counselors are always prepared to answer your questions, they have scheduled appointments throughout the business day. Our Account Representatives are qualified individuals trained to answer most questions regarding you DMP. In the event our Account Representatives cannot help you, they will schedule you a review appointment with your counselor.

Will CCCS of Alaska contact my creditors in the Debt Management Plan?
CCCS of Alaska sends a proposal letter to each of your creditors when you enter the plan and after you have submitted all of the documents requested by your counselor. This letter advises each creditor that you have sought debt repayment assistance through CCCS of Alaska and requests the creditor’s support. The proposal letter will identify the following for each creditor:

• Your account number
• Your total indebtedness
• Your net income
• Your living expenses
• The names of creditors in your plan
• The amount owed to each creditor in your plan
• Your proposed repayment amount for each creditor
• The reason for your plan

Why must all of my creditors be included in my DMP?
Creditors work with CCCS of Alaska because they will be treated fairly and equitable. In most cases all unsecured debts that you owe must be included in the Debt Management Plan.

What if a creditor does not accept the plan?
In the event that one of your creditors is unwilling to accept the proposed payment, we will first see if you have enough available in your rejected proposal account to cover any requested increase. If these funds have been used, an Account Representative will contact you to see if you can adjust your budget to meet their requirements.

Will my creditors still contact me?
Once creditors begin to receive regular payments through CCCS of Alaska, they should stop calling you. If they continue to call after you are enrolled in the DMP, do not refuse to talk to them. Instead, encourage them to contact us at (907) 279-6501.

Some creditor representatives may tell you that they do not accept CCCS of Alaska payments or that they have never heard of us. Do not be intimidated. We can verify whether a creditor does or does not accept our plan. The majority of creditors elect to work with us. Call an Account Representative for confirmation. Some creditors will accept payments from us, but will not confirm an accepted proposal.

You may continue to receive routine collection letters from your creditors during your first three months on a DMP. The majority of these letters are computer generated and are no cause for alarm. However, if you receive correspondence concerning legal action or regarding the transfer of you account from one creditor to another, please contact an Account Representative so we can help you verify that your payments are posted correctly.

Will my creditors stop finance charges on my accounts now that I am working with CCCS of Alaska?
Many creditors agree to stop or reduce finance charges. However, it is important for you to remember that not all creditors stop interest charges. Also, creditors that agree to stop or reduce finance charges or late fees are likely to resume the charges if payments are missed. If your CCCS of Alaska due date does not coincide with your creditors' due dates you will need to contact creditors and request a change in due date. Some creditors will do so only at the request of the account holder.

Will I receive a record of my deposits to CCCS of Alaska?
Each month you will receive a CCCS of Alaska statement showing your deposits, disbursements we have issued to your creditors and a summary of each of your accounts. The statement is composed of two sections. If you are not participating in Auto-deposit, the top section is the portion that you mail with your next deposit. It contains the following information:

• Date the statement was issues
• Your CCCS of Alaska client number
• Due date of your next deposit
• Amount of your next deposit
• Blank to enter the amount deposited.
• The bottom section of the statement is a record of your account:
• Name of creditors
• Creditor account numbers
• Original balance of each account
• Amount of payment disbursed to each creditor
• Total payment made over the life of the plan
• Current estimated balance of each account

Keep in mind that the balances shown on your CCCS of Alaska statement are only estimates and may vary from the balances on your creditor statements. When you entered our DMP, you submitted to your counselor the balance due to each creditor. This established the beginning or original balance of your plan. Since some creditors continue to add finance charges while their customers are paying through CCCS of Alaska, balances for these creditors may be larger than what is shown on your CCCS of Alaska statement. If CCCS of Alaska knows the annual percentage rate the creditor is charging, we will apply that rate to your estimated balance. If there are major differences between the balance on your creditor statements and what we display, or if you have any questions concerning your CCCS of Alaska statement, please contact an Account Representative.

If you are not participating in Auto-deposit, mail the top portion of your statement with your deposit.

Will I receive statements from my creditors?
Unless a creditor has written off your account, usually you will continue to receive monthly statements. When you receive your monthly statement from CCCS of Alaska, please compare it to the monthly statements from your creditors. It is essential to monitor your creditor statements monthly to ensure interest and late fee concessions are obtained, balances are within one payment of those reflected on your CCCS of Alaska statement, and payments are posted correctly. We suggest you send a copy of each of these monthly statements every four months to us. The balance on your CCCS of Alaska statements can then be updated to include any finance charges or late fees added by your creditors. In addition, please advise an Account Representative immediately if any of your creditors' and CCCS of Alaska statements differ by more than one monthly payment. CCCS of Alaska attempts to verify balances only as an account is nearing payoff.

What deposit options are available?
Auto-deposit is by far the easiest, most reliable method of making deposits to CCCS of Alaska. You are eligible to participate in Auto-deposit if you have a bank or credit union account. This electronic deposit system automatically deducts your monthly CCCS of Alaska deposit directly from your account. Contact an Auto-deposit Administrator if you are interested in this payment option. Other deposit options include:

• Cashier's check (with client number)
• Certified check (with client number)
• Money order (with client number)
• ATM/Debit Card (Anchorage office only)

CCCS of Alaska Cannot Accept Cash or Personal Checks.
We accept only electronic deposits, money orders, cashier's checks or certified checks. Your name and client number must be written clearly on the money order, cashier's check or certified check as identification of your deposit. If you are not using the Auto-deposit system, enclose the top portion of the statement with your deposit.

When is my deposit due?
Auto-deposit is the easiest system to elect for timely deposits to CCCS of Alaska. You will work with your counselor to choose your due date. Should you decide to mail your deposit, all deposits must be received in our office by the due date shown on your statement. Please refer to your deposit planner for your personal schedule of due dates and creditor disbursements.

Can I increase my monthly deposit to CCCS of Alaska?
Definitely! Remember, your objective is to get out of debt as soon as possible. Any time you have the good fortune of having extra money for CCCS of Alaska to send to your creditors, you should do so. Extra funds will be distributed on your instructions. This should reduce the amount of time estimated for the completion of your Debt Management Plan.

What happens if I receive a large sum of money and want to pay off my account early?
When circumstances allow for an early payoff, contact your creditors for a payoff balance. Then contact an Account Representative to update balances to ensure funds are disbursed properly. Please make these final payments through CCCS of Alaska. We can help DMP graduates re-establish their credit. If you normally make your monthly deposit to CCCS of Alaska using Auto-Deposit and your payoff is larger than your regular deposit, contact an Auto-Deposit Administer and let them know the amount and date you would like your final withdrawal. Be sure to inform them this withdrawal is to pay off your accounts.

What if my deposit is late?
You can eliminate late deposits by enrolling in Auto-deposit. Late deposits will be disbursed during the next possible disbursement. If you miss a deposit, you can expect a call from your creditors wanting to know what happened, as well as additional interest, finance charges or late fees on your creditor statements. A representative from our office may also contact you to offer support and assistance.

What if I miss a deposit?
If you miss two consecutive deposits or four deposits within a twelve month period, CCCS of Alaska will consider your file inactive and may drop you from the DMP. We advise all creditors on your plan when you have been dropped from the plan. In addition, creditors may resume charging finance charges or late fees and may report this delinquency to credit reporting agencies. If you are having a problem making a deposit, please call an Account Representative immediately. By keeping us informed, we are better able to work with your creditors to ensure the success of your DMP. Every effort must be made to keep your agreement to make your full deposit on time each month.

What if I lose my job?
If circumstances make it necessary to miss two consecutive deposits, it may be necessary to close your DMP. Please contact us so that we can discuss the possibility of a review appointment to assist you until you have income again.

Can my creditors take legal action against me while I’m enrolled in the DMP?
Most creditors prefer to receive payments through CCCS of Alaska rather than go to court. Many stop legal action or hold judgments in suspension if they are receiving regular payments through CCCS of Alaska. However, some creditors may elect to take legal action. If you receive a summons to court, follow all instructions of the court or your attorney. Contact CCCS of Alaska immediately so we can assist you in determining if you need a follow up appointment scheduled with your counselor. You may wish to provide the judge or mediator a copy of your CCCS of Alaska paperwork as evidence of your good faith effort to repay your debt. Please remember that CCCS of Alaska does not provide legal advice and that you are responsible for engaging personal legal services if needed.

Can a creditor garnish my Permanent Fund Dividend check?
Yes. While some creditors choose not to garnish PFD’s for clients making regular deposits, those who have a legal basis for doing so can garnish your PFD check. If you are notified that one of your creditors is garnishing your check, please let us know immediately. As garnishment payments are not disbursed to creditors by the court system for several months, we will continue to make regular payments to this creditor. Once you have received confirmation from the creditor that they have received funds, notify us so we can make the appropriate adjustment to your balance.

Will creditors help me re-establish credit?
There are an increasing number of creditors who will consider granting credit to CCCS of Alaska graduates who have successfully completed their Debt Management Plans. Upon satisfactory completion of your plan you may request the names of creditors who may be willing to re-establish your credit.

Can CCCS of Alaska fix my credit report or clean it up?
No. If negative comments on your credit report are correct, they can remain in your file for up to seven years from the date of the last activity, except for bankruptcy, which can remain for up to 10 years. Avoid organizations offering "credit repair."

Upon completion of the DMP, we suggest that you obtain a copy of your credit report to make sure it is accurate. For your convenience, CCCS of Alaska has credit report request forms available in all offices.

If you believe there are errors in your credit bureau report, notify the credit bureau in writing. The bureau will follow up your request with the creditor. If the creditor agrees with your assessment, your report will be changed.

Will my credit rating be protected by using CCCS of Alaska?
CCCS of Alaska does not report your participation in the Debt Management Plan to credit bureaus. However, each creditor deals with CCCS of Alaska clients in a different way. Some creditors may report that your account is included on a DMP. Creditors may report your account as current when they receive our proposal, while some wait until they have received three consecutive payments through CCCS of Alaska.

Other creditors will consider your account delinquent and will continue to report these delinquencies even though you are working with CCCS of Alaska. They will accept the payment and stop calling you, but they may still report negative information to credit bureaus. It is up to the individual creditor to make changes in the "History of Payment" column on your credit report. CCCS of Alaska cannot remove information from your credit report but we can assist you in contacting your creditors for a review of your account.

Some of your accounts may be charged to profit and loss by your creditors during the course of your plan. This will depend on the condition of the account when you entered the plan, the size of monthly payments to each creditor, the creditor’s general policy and other factors. Your DMP does not replace your contractual legal obligations to your creditors.

What if I have to borrow money while on my DMP?
The agreement you signed at the beginning of your DMP requests that you not seek any additional credit while you are a CCCS of Alaska client. Should an emergency arise, please call us before you apply for any additional credit. Although CCCS of Alaska cannot serve as a credit reference for you, we can provide you with a letter attesting to your payment record with us. Please allow five to seven days for processing this request.

What if I want to withdraw from the Debt Management Plan?
Your DMP is a voluntary plan on your part, our part and your creditors’ part. If you choose to withdraw, please notify CCCS of Alaska in writing and we will send you a reply confirming your withdrawal. We will notify your creditors that you have withdrawn from the DMP; however, you are responsible for making new payment arrangements.

How is CCCS of Alaska funded?
Most of our funding comes from voluntary contributions from creditors who participate in Debt Management Plans. Since creditors have a financial interest in getting paid, most are willing to make a contribution to help fund our agency. These contributions are usually calculated as a percentage of the payments you make through the DMP – up to 15% of each payment received. However, your accounts with your creditors will always be credited with 100% of the amount you pay through CCCS of Alaska and we will work with all creditors regardless of whether they contribute to our agency.

CCCS of Alaska charges DMP clients a monthly fee of 10% of their total monthly deposit, not to exceed $20 per month.

Client Bill of Rights

• We pledge that as our clients you have the right:
• To prompt counseling services for managing your money based on your financial situation.
• To treatment with dignity and respect in confidential, professional counseling sessions
• To a comprehensive assessment of your financial situation including an appropriate action plan
• To express dissatisfaction through a complain resolution process. A complete description of our grievance policy is available for review at any time.
  
• To discontinue your relationship with our agency at any time
• CCCS of Alaska serves all members of the community without regard to social/economic status, sex, ethnic, racial or religious affiliation.
• If you have a need for a special accommodation, please let us know.

If you feel we have not upheld every promise as stated above, please direct your concerns to:

Larry Snider, CEO
Consumer Credit Counseling of Alaska
208 E. 4th Ave
Anchorage, AK 99501

CCCS of Alaska is an Equal Opportunity Employer, Service Provider Agency, accredited by the Council on Accreditation of Services for Families and Children and approved for housing counseling by the U.S. Department of Housing and Urban Development.