Frequently Asked Questions
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The Federal Trade Commission (FTC) was developed to protect consumers from fraudulent, deceptive, and unfair business practices and to provide consumers with the information they need to recognize and avoid such practices. To help consumers make wise decisions about credit counseling programs and debt management plans, the FTC suggests they ask certain questions. These questions follow here along with our answers.
FFEF offers coaching, counseling, education, financial analyses, debt management plans, pre-bankruptcy counseling, bill paying services, credit score reviews, and payoff negotiations. Do you offer information? Are educational materials available for free? FFEF is committed to helping people become debt free, which includes sending clients free educational materials. Each month clients receive a newsletter with important financial information and tips. Clients also receive a Family Financial Training Course which consists of thirteen volumes with one being distributed every six months. Titles include: Understanding Your Debt Management Program, Creating Your Budget, Implementing Your Budget, Managing Your Money, Improving Your Lifestyle, Understanding Your Credit, Reading Your Credit Report, Knowing Your Consumer Rights, Maintaining Your Home, and Planning Your Future. What are your fees? Are there set-up and/or monthly fees? At FFEF, our fee schedule is based on state-regulated enrollment and monthly fees. Our complete fee policy is provided to you when you enroll in our program. The fee is included in your monthly payment and goes toward processing your payments, negotiations with creditors, and operating costs necessary to help you become debt free. Will I have a formal written agreement or contract with you? Every client receives an FFEF Engagement Agreement and a State Addendum, if applicable, for the state in which he or she resides. The agreement and addendums can be viewed and or printed in English and Spanish under the Resources tab. Are you licensed to offer your services in my state? FFEF is licensed or qualified to do business in most states. Consult your state registry for more information or call FFEF at (877) 789-4172 to find out what your state's requirements are. What are the qualifications of your counselors? Are they accredited or certified by an outside organization? If so, by whom? If not, how are they trained? All FFEF counselors are accredited through independent organizations such as the Association for Financial Counseling and Planning Education (www.afcpe.org), National Institute for Financial Education (www.nife-ed.com), and the National Association of Consumer Credit Counselors (www.naccc.us/). FFEF actively looks for appropriate continuing education for its counselors, and they receive ongoing training and education through staff and team meetings and special seminars. What assurance do I have that information about me (including my address, phone number, and financial information) will be kept confidential and secure? FFEF adheres to the Gramm-Leach-Bliley Act of 1999. Our privacy policy states that "your personal and financial information is confidential and should not be disclosed outside our company, except where such information is required by law to be disclosed or where disclosure is necessary and appropriate to complete transactions you have requested, authorized, and or instructed us to do on your behalf." You will receive a copy of our Customer Information Privacy Policy upon enrolling in our debt management plan. You may also view the policy by clicking first on the Resources tab and then on Privacy Policy. How are your employees compensated? Are they paid more if I sign up for certain services, if I pay a fee, or if I make a contribution to your organization? All FFEF employees are either salaried or hourly employees. It is against FFEF policy and the industry standards for any employee to receive commissions or other special compensation for enrolling a consumer in a debt management program. OTHER FREQUENTLY ASKED QUESTIONS What are some of the benefits of being on the FFEF Debt Management Program? Many creditors will reduce the required monthly payment amount, lower or suppress interest, and re-age or bring the account current. However, we cannot guarantee that every creditor will make these concessions as each has its own set of parameters and procedures to which it adheres. FFEF has friendly, professional Client Care Teams that are eager to answer your questions and to help you with harassing creditor calls. The most important benefit of all is called "roll-up". With roll-up, your debts will pay off much faster than if paid by making normal monthly payments. To realize the full benefit of the FFEF Debt Management Program, monthly payments to FFEF should remain the same (or increase) until the last creditor is paid in full. As each of the smaller creditors is paid off, the creditor with the next smallest balance receives the additional payment, thus decreasing both the amount of interest paid to creditors as well as the time it takes to become debt-free. How do I enroll in the Debt Management Program? Gather all of your most current creditor statements and call the Family Financial Education Foundation office at our toll-free number: (877) 789-4172. You will need to give the FFEF credit counselor a complete list of the creditors you owe and how much. FFEF can then determine if you qualify for a debt management program. If so, they will calculate an appropriate monthly payment and an estimated debt-free date. What happens once I enroll in the Program? Many new clients have questions regarding what happens to their accounts once they are enrolled. Upon enrollment, your creditor data is entered into the computer, and you are assigned a client number. Proposals requesting lowered monthly payments and interest rates are mailed to your creditors. Next, our office sends a packet to you that includes a welcome letter and client statement indicating your pre-negotiated monthly payment amount. You will also receive a Welcome Call from one of our credit counselors to review how the program works and answer any questions you might have. Your monthly payments will be consolidated into one payment that you send to FFEF, and your first payment will be due within 30 days of your enrollment. You are encouraged to use AutoPay, where FFEF will automatically electronically draft your bank account at the same time each month. AutoPay ensures your payment arrives at FFEF at the same time each month so that it is always disbursed the same day. Payments are disbursed to creditors four times per month - on the 7th, 14th, 21st, and last day of the month. What if an emergency arises, and I cannot send my full payment each month? It is extremely important that you consistently make full payments before your due date each month. Missing a payment gives creditors the option of cancelling previously negotiated payment arrangements and taking you off their consumer credit counseling program. However, if you cannot send your full amount, send as much as you can, and we will proportionally pay your creditors unless otherwise instructed by you. What should I do when creditors call me? Even after enrollment, creditors may continue to call you until they have received three consecutive, on-time monthly payments from you through FFEF. When creditors call, politely explain that you have enrolled in the FFEF debt management program. You may give creditors the FFEF telephone number (307) 789-2010, and ask them to contact us. You can also ask for the name and telephone number of the collector and report it to your Client Care Team for their follow up. What should I do if I change my address, phone number, job, or name? Please call your Client Care Team right away or make the change on your payment coupon anytime your demographics change. You must also notify your creditors. May I apply for new credit while on the program? We recommend that you do not apply for new credit while on the program. If you do, the terms FFEF has negotiated with many of your creditors will be void. If absolutely necessary, you may be able to purchase a secured credit card through your local bank, but you should contact your creditors before doing so to be sure this will not void the arrangements you have with them. May I use my debt management program to pay off secured debt like my home mortgage? Yes. If you do include secured debt in your program, be aware that it is not negotiable: the interest rates will not be lowered, the monthly due date will not change, the account cannot be re-aged, and the minimum payment will not be lowered. Secured debt payments may be made only through the FFEF's AutoPay program, and the account must be current. May I add additional debt to my program after enrolling? You are encouraged to add all of your unsecured debt at the time of enrollment, but you may add a new debt by sending your Client Care Team a copy of the current statement from the creditor with your client number and a request to add the account to your program. Your monthly payment will be increased to include the new account, or if sufficient rollup is available, the roll-up can be applied as payment to the account. However, if you use rollup rather than increase your payment, you will extend the length of your debt management program. |