Delray Credit Counseling Complaint - Supposed non-profit for debt management
DELRAY BEACH, FLORIDA -- I signed up for services with Delray Credit Counseling about 1 1/2 years ago. I had debt in about 3 credit cards and at that point it felt like I was not going to be able to get out any time soon. The company offered to help reduce interest on creditcards and reduce monthly payments and stop fees like late fees, etc. You would send one payment to the company and it would pay the agreed amount to the creditors. It's supposed to be a non-profit organization. First of all they did reduce the interest but not by very much as they had indicated when they explained what they could do, then they charge a $39 fee per month so that's like adding to your interest that they have reduced. Then the first full payment you make is kept as a "deposit." Then the second payment you make is not sent to the creditors until 30 days after, so you find yourself having to pay for 2 or 3 months your credit card to keep current while paying Delray at the same time. They extend your payments for as long as possible. I think for mine it was like 4 or 5 years and of course over the course of that time, your paying interest and their fee which means you end up paying them about 2000+ on top of the interest. I was able to find a bank loan and a credit card which I could transfer my debt for much much lower interest than I was getting from any cc under the program, I calculate I will be debt free in about 1 to 1 1/2 years at most, so I call to end the program and I find out that because I'm ending the program before they will keep my deposit. Ultimately these people do not have your best interest in mind although that is what they claim. I would recommend to someone to try to talk to their creditors or find some other organization that is really non-profit.