What benefit does the creditor get from a consumer credit counseling agency?
Answer. Creditors receive a huge advantage when consumers take the initiative to seek help from a consumer credit counseling agency. First, if a consumer’s account goes to collections, then the creditor will only receive about 50% of the total outstanding debt, if they can collect anything. Second, if a consumer files bankruptcy, the creditor will lose 100% of the total debt. With a consumer credit counseling agency, as long as payments are made, the creditor is guaranteed 100% of the total outstanding principal balance (and maybe some interest). A consumer credit counseling agency is a win-win situation for all parties.
